Exploring the Potential of Solar and Wind-Powered Green Hydrogen: Production, Costs and Environmental Impacts in South Asia

Abstract

The global shift towards sustainability has increased interest in green hydrogen as an alternative to fossil fuels. While hydrogen feasibility studies exist for individual countries, there is a lack of comprehensive assessments for South Asia. This study evaluates green hydrogen production in South Asia, focusing on electricity generation from photovoltaic (PV) and wind turbine systems across eight countries. We analyze the levelized cost of hydrogen (LCOH), hydrogen production density, and carbon dioxide (CO2) mitigation potential using climate data and techno-economic model. The findings reveal significant variation in energy potential, with Afghanistan, Sri Lanka, and Pakistan showing strong wind resources, and Afghanistan, Maldives, and Sri Lanka demonstrating high solar potential. LCOH analysis shows wind-based hydrogen is more cost-effective than PV-based systems, particularly in Afghanistan, Pakistan, and Sri Lanka. CO2 mitigation estimates highlight the greater environmental benefits of wind-based hydrogen in regions with high wind speeds. Sensitivity analysis reveals that degradation and discount rates notably impact LCOH, with Bangladesh and Bhutan seeing the highest cost increases. Increasing electrolyzer efficiency consistently reduces LCOH. Additionally, the impact of variations in capital costs, operation and maintenance costs, and system lifespan on LCOH is also significant, with Bangladesh and Bhutan experiencing the highest cost growth. A comparative analysis with global studies shows that South Asia's costs are competitive or lower than those in other regions. These insights offer valuable guidance for policymakers and investors to accelerate hydrogen adoption in South Asia.