Is it time for India to switch to green energy? Allocating land and lowering solar costs pave the path

Is it time for India to switch to green energy? Allocating land and lowering solar costs pave the path

According to a statement from Nuvama, the development at the Gujarati port of Kandla might help India establish itself as a major participant in the world of green energy. The aforementioned advances are consistent with the goals of the National Green Hydrogen Mission, which is to establish the nation as a worldwide center for the production, use, and exportation of green hydrogen. This will decrease the reliance on imported energy and aid in the decarbonization of challenging industries.

India sold $1.9 billion, or over 5GW, worth of solar modules in 2023, with the US being its main destination.

The land allocation at Kandla Port for green hydrogen and green ammonia, which is expected to attract significant private participants, as well as the sharp decline in the cost of imported photovoltaic (PV) cells, are expected to provide impetus to India's green energy ecosystem.

Nuvama said in a note that the Kandla port expansion in Gujarat is in line with the National Green Hydrogen Mission goal, which may help establish India as a major participant in the global green power scene. India hopes to become a worldwide center for the production, use, and export of green hydrogen in order to lower energy imports and assist in the decarbonization of difficult-to-reduce industries.

The Deendayal Port Authority (DPA) of Kandla has set aside space for the construction of green hydrogen and green ammonia manufacturing facilities. Larsen & Toubro and Reliance Industries Ltd. have received land grants of 1,800 and 1,500 acres, respectively. Greenko Group, with 600 acres, and Welspun New Energy, with 300 acres, are further benefits.

According to the article, the DPA hopes to spend around Rs 1 trillion in this effort in order to meet its production targets of 1.5 million metric tonnes per year (mmtpa) of green hydrogen and 7 mmtpa of green ammonia.

Solar energy is more brilliant

A noteworthy advancement in the field of green energy is the possible reduction in the worldwide costs of solar photovoltaic components, which might lead to an increase in solar installations inside households.

The paper highlights that the 67 percent annual fall in polysilicon pricing and the expected further reductions in 2024 may relieve the cost strain on cell and module producers.

Amidst the expectation of anti-dumping duty (ADD) and basic customs duty (BCD) implementation starting in April 2024, Indian imports of solar cells and modules reached all-time highs of 9.9 gigawatts (GW) in January 2024.

India sold $1.9 billion, or over 5GW, worth of solar modules in 2023, with the US being its main destination. "We reckon exports to the US shall continue over 2024 until new capacities come on stream in the US market," said the research.