INDIA GREEN HYDROGEN MARKET FORECAST 2025-2032

A key enabler of truly sustainable hydrogen is renewable energy, which ensures that hydrogen production remains independent of fossil fuels. The Ministry of New and Renewable Energy (MNRE) has established clear emissions criteria to define what qualifies as “Green Hydrogen” in India.

Under MNRE guidelines, green hydrogen must be produced using electricity generated from renewable sources such as solar, wind, or hydropower. This includes hydrogen generated through electrolysis or biomass conversion processes, provided that the electricity used comes from renewables. Additionally, renewable electricity stored in energy storage systems or banked with the grid per applicable regulatory provisions also qualifies under this classification.

This rapidly evolving green hydrogen landscape presents substantial opportunities for U.S. and global companies to collaborate with Indian stakeholders, invest in technology transfer, and support India’s clean energy transition. Participation in this market not only aligns with global decarbonization goals but also opens avenues for innovation and long-term economic partnerships in one of the world’s fastest-growing clean energy sectors.

The segmentation analysis of the India green hydrogen market includes technology, energy source, and end-user. The energy source segment is further classified into solar, wind, and other renewable sources.

India’s ambitious renewable energy target of 500 GW by 2030, spanning solar, onshore and offshore wind, hydro, pumped hydro storage (PHS), and battery energy storage systems (BESS), is central to the success of the National Green Hydrogen Mission. A key geographic advantage is India’s location near the equator, which provides consistently high solar irradiance levels ranging from 4 to 7 kWh/m²/day. States like Rajasthan and Gujarat stand out due to their vast land availability and 250–300 clear sunny days each year, making them ideal for large-scale solar energy deployment. Declining solar photovoltaic (PV) costs further bolsters the economic viability of producing green hydrogen using solar power.

To support round-the-clock renewable energy supply, the National Electricity Plan 2022 projects the requirement of 18.8 GW of pumped hydro storage by 2032. Simultaneously, there is a growing emphasis on battery energy storage systems to stabilize grid operations and ensure consistent power availability for hydrogen electrolysis. A significant milestone in this direction was achieved on February 28, 2024, when the Solar Energy Corporation of India (SECI) commissioned the country’s largest BESS project: a 152.32 MWh storage system coupled with a 100 MW AC solar plant in Rajnandgaon, Chhattisgarh.

This project exemplifies the integration of renewable generation with energy storage, which is critical for enabling reliable and scalable green hydrogen production. As India scales its renewable capacity and strengthens its energy storage infrastructure, it is laying a robust foundation for a green hydrogen economy that is both resilient and globally competitive.