IEA Report 2025 Reveals Hydrogen Growth and Key Challenges
The International Energy Agency’s latest Global Hydrogen Review 2025 paints a mixed picture for the hydrogen sector. While demand is rising steadily, significant hurdles like cost gaps and infrastructure bottlenecks continue to slow large-scale adoption. For solar professionals eyeing hydrogen as the next frontier, this report offers crucial insights.
Hydrogen’s Steady Climb Amid Roadblocks
Global hydrogen demand increased by 15% compared to 2024 figures, with notable uptake in refining and industrial applications. However, nearly 70% of this growth comes from traditional ‘grey hydrogen’ production rather than green hydrogen made with renewable energy.
The Solar-Hydrogen Connection
Solar-powered electrolysis could change the game. With panels becoming cheaper and more efficient, coupling PV systems with hydrogen production is no longer just theoretical. Companies like L&T and Adani are already testing large-scale projects in Gujarat and Rajasthan.
Why Costs Still Matter (A Lot)
Green hydrogen remains 2-3 times costlier than conventional alternatives. Without subsidies or carbon pricing, many industries won’t switch. The IEA notes that electrolyser costs must drop below $400/kW to compete—currently they hover around $650/kW.
Storage and Transport: The Unsung Challenges
Producing hydrogen is one thing; moving and storing it is another. Unlike solar power that flows through existing grids, hydrogen needs specialized pipelines or cryogenic tanks. Australia’s hydrogen export projects show promise, but India lags in this infrastructure.
What Solar Professionals Should Watch
The report highlights five key areas where solar intersects with hydrogen:
- Hybrid solar-hydrogen microgrids for industrial clusters
- Peak shaving applications using hydrogen storage
- Rooftop solar integration with small-scale electrolysers
- Opportunities in hydrogen refueling stations
- Policy frameworks for renewable hydrogen credits
A Reality Check on Timelines
While hydrogen hype suggests rapid disruption, the IEA projects gradual growth until 2030. For solar companies, this means strategic pilots rather than all-in bets. States like Tamil Nadu and Karnataka are rolling out hydrogen policies worth monitoring.
The Bottom Line for India
Hydrogen won’t replace solar anytime soon, but it’s becoming an important complement. With the right policies and tech advancements, India could position itself as a green hydrogen hub—if we address infrastructure gaps quickly.
India’s solar industry is also witnessing significant growth, with solar manufacturing booming and green energy investments on the rise.
