Cost estimation of Green H2 in the Indian context in 2025 and 2030

Green Hydrogen adoption is in its initial stage in India, with the overarching mission to make India a Global Hub in this domain, which assigns immense significance to its price economics. Each country has its own infrastructure, technological skills, policy framework and the associated costs (including procurement, supply chain and operation efficiencies), which varies the green hydrogen generation cost in different countries. In this backdrop, this study/analysis is aimed at estimating the levelised cost of generation of green hydrogen (LCOGH) in the years 2025 and 2030 in the Indian context, including analyzing historical and projected cost profiles of two major cost parameters, viz., electrolysers and PV Solar energy (65-70% of the cost). In this study, the cost range of LCOGH for 2025 and the most likely cost for 2030 is estimated as $ 4.26/kgH2 and $ 2.79/kgH2 respectively. The sensitivity analysis concludes that achieving targeted LCOGH/Kg in the range $1.0-1.5/KgH2 by the year 2030 (as widely quoted in the literature) is a challenging task in the Indian context as to achieve LCOGH of $1.0/kgH2, the electrolyser cost needs to be say $185/kW at an electricity tariff of INR 0.50 ($0.0058)/kWh or as $110/kW at tariff INR 1.00 ($0.117)/kWh. To achieve LCOGH of $1.15/kgH2, it needs to be $230/ kW & $152/kW at the tariffs $0.0058/kWh & $ 0.117/kWh respectively, a drastic cost reduction from the prevalent costs. These findings are expected to help the policy makers in India for policy formulation, planning future investments, and the infrastructure creation in this regard.