India is ramping up its efforts to develop green hydrogen as part of its renewable energy strategy, with a recent policy brief by The Energy and Resources Institute (TERI) calling for pilot projects, subsidies, and the creation of Special Purpose Vehicles (SPVs) to advance this goal. The policy brief emphasizes the need for substantial investments and government support to make green hydrogen a viable energy source for industrial use, transportation, and other sectors.

Green hydrogen, produced through the electrolysis of water using renewable energy, is seen as a key solution to reduce carbon emissions and diversify energy sources. TERI’s recommendations aim to accelerate the adoption of this clean energy technology by addressing critical issues like cost competitiveness, infrastructure development, and regulatory frameworks.

The policy suggests providing financial incentives such as subsidies to encourage private sector participation and reduce the initial investment burden. Pilot projects will serve as testing grounds to demonstrate the feasibility of green hydrogen at scale, particularly in industries such as steel and heavy transportation that are difficult to electrify.

India’s push for green hydrogen aligns with its broader ambitions to meet its climate goals and position itself as a leader in the global energy transition. However, challenges such as technological development, market demand, and the integration of green hydrogen into existing energy systems remain key obstacles.