The green energy ecosystem in India is likely to get a boost with the land allocation at Kandla Port for green hydrogen and green ammonia set to bring in major private players, and a steep fall in imported photovoltaic (PV) cell prices.
The development at the Kandla port in Gujarat may help position India as a key player in the global green power landscape, Nuvama said in a note, as it aligns with the National Green Hydrogen Mission objective. India aspires to be a global hub for green hydrogen production, utilization, and exports, thereby reducing energy imports and helping decarbonize hard-to-reduce sectors.
Kandla's Deendayal Port Authority (DPA) has allocated land for setting up green hydrogen and green ammonia production units. Reliance Industries Ltd and Larsen & Toubro have been granted 1,800 and 1,500 acres of land. Other beneficiaries are Greenko Group at 600 acres and Welspun New Energy at 300 acres.
Through the move, the report notes, the DPA aims to achieve a production target of 1.5 million metric tonnes per annum (mmtpa) of green hydrogen and 7 mmtpa of green ammonia at an estimated investment of Rs 1 trillion.
Solar power shines brighter
Another major development in the green energy space has been the potential decline in global prices of solar PV components that may potentially boost domestic solar installations.
The decline in polysilicon prices by 67 percent year-on-year and the anticipation of further reductions in 2024 could alleviate cost pressure on cell and module manufacturers, the report notes.
In January 2024, Indian imports of solar cells and modules surged to record highs of 9.9 gigawatts (GW) amid anticipation of anti-dumping duty (ADD) and basic customs duty (BCD) implementation from April 2024.
In 2023, India exported $1.9 billion or around 5GW of solar modules, with the US being the primary market. "We reckon exports to the US shall continue over 2024 until new capacities come on stream in the US market," the report noted.
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