Speaking at the CII International Business Conclave on Green Hydrogen, Mr. Sajay K.V., CEO of Zelestra India, brought a developer’s perspective to the discussion, firmly positioning green hydrogen as the next transformative sunrise sector.
“I’ve already witnessed a couple of these transitions—first with wind, then solar,” he said. “What started as sunrise sectors back then have now matured into vital components of our energy ecosystem. I believe green hydrogen is set to follow the same trajectory.”
Mr. Sajay said that renewable energy will be the true game-changer in enabling the green hydrogen economy. “Without renewables, it isn’t green hydrogen. That’s the baseline,” he remarked. He acknowledged that while offtake visibility remains limited today, it is maturing steadily and heading in the right direction.
One of the key enablers, he noted, is the declining cost of electrolysers—much like the journey solar modules undertook over the past decade. “Fifteen years ago, solar cells were priced at 60 cents per watt. Today, Chinese modules are down to 8–9 cents, and Indian ones to 16–17 cents,” he explained. “That same economic curve is beginning to emerge for electrolysers as we gain scale.”
However, Mr. Sajay pointed out that renewable energy’s firmness and reliability—especially round-the-clock (RTC) supply—will define the competitiveness of green hydrogen in the long run. “Most green hydrogen manufacturers today are going for hybrid models—wind and solar—without adding storage, because adding batteries increases the levelized cost of electricity (LCOE). But that means they’re operating at just 60–70% capacity, underutilising assets and limiting cost efficiency,” he said.
To improve utilisation and lower overall costs, he proposed that green hydrogen production should be co-located with renewable energy projects, especially solar and wind farms. “It’s simple economics—shared substations and early-stage integration help reduce balance-of-plant losses and capital expenses,” he said. “Co-location is not just efficient—it’s necessary.”
Mr. Sajay praised government policies that have laid the groundwork for scale, particularly the ISTS (Inter-State Transmission System) waiver, which provides transmission cost exemptions for renewable energy used in green hydrogen production. “It’s a great step. But the fine print matters,” he cautioned. “The waiver is only applicable if the offtaker signs the agreement and the project is commissioned before 2030.”
This condition, he argued, needs further refinement. “Of course, offtake isn’t yet fully clear. But we can’t afford to wait. We need to earmark the best wind and solar sites now—even if the offtake happens in 2029 or 2030,” he asserted. “Otherwise, by the time the demand matures, we’ll have lost access to optimal sites.”
Sharing his own experience, Mr. Sajay revealed that Zelestra currently has a pipeline of 5,000 MW of wind-solar co-located projects, ready to be commissioned by 2028–2029. “Some offtakers are in talks with us, but we don’t expect deals to materialise in the next year or two. That’s why the policy must evolve to allow developers to reserve these high-quality sites now,” he emphasised.
Mr. Sajay highlighted the urgent need for proactive planning and adaptive policy frameworks. “Green hydrogen is a generational opportunity. We have the land, the wind, the sun, and the innovation. What we need now is visibility, flexibility, and collaboration. If we get that right, India won’t just participate in the green hydrogen revolution—we’ll lead it.”
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