Author: Shalini Bharti, Research Analyst
18 March 2025
To promote green hydrogen production, Himachal Pradesh has laid the foundation of the first-ever 1MW green hydrogen plant at Nalagarh in Solan district of North India. This move is consistent with India’s green energy mission and can also be traced under the India-UK Energy Dialogue. All these measures mutually reinforce India’s commitment to environment and energy development.
As per the UnivDatos, The India Green Hydrogen Market was valued at USD 22.88 Million in 2023 and is expected to grow at a strong CAGR of around 69.8% during the forecast period (2024-2032).
It was on 5 February 2025, when the honourable Chief Minister of Himachal Pradesh, Thakur Sukhvinder Singh Sukhu initiated this project by performing the Bhumi Pujan at Dabhota located in Nalagarh Tehsil. This project is a joint venture of Himachal Pradesh Government and Oil India Limited which is a good initiation of Himachal towards achieving its vision of making Himachal a ‘Green Energy’ state of India by March 2026.
The 1 MW capacity plant is envisaged to use renewable electricity sources in producing hydrogen by the process of electrolysis. It means there are no emissions to the atmosphere, thus implementing the best practices of saving the climate from further degradation. Organizers expect the project to be accomplished within a year and suggest such projects for other regions as well.
The establishment of this type of plant puts Himachal Pradesh at the forefront of green hydrogen generation for its industrial applications in the state. Green hydrogen is an environmentally friendly fuel used in transportation, electricity generation, and other processes where fossil fuel is currently used. They are playing a big role in the preservation of the environment, the creation of employment opportunities, and the development of technology, meaning it has contributed to the energy security of the country.
Himachal Pradesh’s Green Hydrogen initiative aligns with Asia’s growing commitment to renewable energy, positioning India as a key player in the region’s green hydrogen ecosystem.
As per the UnivDatos, The Asia Pacific Green Hydrogen Market was valued at USD 117.73 Million in 2023 and is expected to grow at a strong CAGR of around 68.2% during the forecast period (2024-2032).
Green hydrogen is the hydrogen gas produced through the method known as electrolysis, through the utilization of electric energy obtained from such renewable resources as wind, solar, or hydropower to split water down into hydrogen and oxygen. This does not emit any carbon, thus making green hydrogen friendly to the environment as opposed to ways of producing hydrogen from other hydrocarbons.
Green hydrogen is regarded as the key component to curb emissions in sectors that are challenging to electrify, including industries, transportation, and energy storage. They can be employed in fuel cells electricity generation and chemical production which are vital in the chemical and refining sectors hence having the ability to provide for a cleaner economy.
As per the UnivDatos, the Green Hydrogen Market was valued at USD 317.12 Million and is expected to grow at a strong CAGR of around 65.7% during the forecast period (2023-2030) owing to the net zero emissions targets set by countries across the globe for 2030 to stimulate the renewable energy transition.
The fourth edition of the India-UK Energy Dialogue was held in New Delhi on 10 February 2025, which was co-led by India’s Union Minister of Power and Housing and Urban Affairs, Shri Manohar Lal, and UK’s Secretary of Energy Security and Net Zero, Mr. Ed Miliband. Topics were discussed at a high level and reflected an understanding of the sustainable development of the energy sector that both countries seek to achieve.
Launch of ASPIRE Phase-2
The Ministers announced the launch of Phase 2 of the India-UK bilateral Accelerating Smart Power & Renewable Energy in India (ASPIRE) programme. This phase is to focus on providing technical support for the uninterrupted power supply and supporting the promotion of renewable energy, industrial energy efficiency, and decarbonization. This will be in line with the bilateral cooperation between KFW and India’s Ministry of Power (MoP) and Ministry of New and Renewable Energy (MNRE).
Establishment of the UK-India Offshore Wind Taskforce
As acknowledged by both the Ministers about the common vision of the expansion of Offshore Wind Generation capacity, both the parties reaffirmed the formation of a UK-India Offshore Wind Taskforce. As for the term body, this will deal with the growth of the offshore wind ecosystem, supply chains, and financing frameworks in both countries. This measure is in line with an increased focus on the utilization of other energy sources besides the standard fossil energies and the reduction of carbon emissions.
As per the UnivDatos, Global Offshore Wind Market was valued at USD 25.6 billion in 2022 & is expected to grow at a CAGR of 12% from 2023-2030.
Continuation of Power Sector Reforms
It also noted that both countries recognize that power market regulation is key to the energy transition mechanism, in addition to increasing energy security and access. To support this, they launched the continuation of the Power Sector Reforms program in the frame of the UK Partnering for Accelerating Climate Change (UKPACT). Moreover, there is a new collaboration proposed between, OFGEM of the UK and CERC of India for the support of the integration of the renewable to the grid and grid modernization in India.
Knowledge Exchange and Capacity Building
Mr. Miliband evinced keenness on India’s ambitious schemes for renewable energy especially the Solar Rooftop Programme (PM – Surya Ghar Muft Bijli Yojna). This interest creates the basis for knowledge-sharing and capacity development activities through which the UK can learn from India’s first-hand experiences in large-scale renewable energy programs.
The Fourth India-UK Energy Dialogue is a progressive step in the development of relations between the two countries as they work for a transition to sustainable energy. These are the goals that have been highlighted and proposed in this dialogue, which, in turn, should advance Florida’s priorities concerning the growth of renewables, efficiency, and reform. These steps will further augur well for global sustainability policies and lay a good foundation of cooperation in the energy sector between the two countries.
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