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Energy Storage, Fuel Cells and Green Hydrogen

Pumped storage, lithium-ion, sodium-ion and flow batteries, fuel cells and the colours of hydrogen, with India's 2026 storage and hydrogen policy, for CGPSC.

15 min read Updated Oct 2026 #energy storage#pumped storage#lithium-ion battery

Prerequisites

The Hook: Sunshine at 8 p.m.

Connect

At noon in March, solar parks flood the grid with cheap power. At 8 p.m., when Raipur switches on its lights, coolers and TVs, solar output is zero. Today, coal plants in Korba and Sipat ramp up to fill that evening peak.

If India is to reach 500 GW of non-fossil capacity by 2030, it must find a way to move noon’s sunshine to the night. Can water pumped up a hill, a lithium battery, or a tank of hydrogen do that, and at what cost?

Why it matters: Prelims asks how batteries and fuel cells work, the colours of hydrogen, which minerals batteries need and the targets of the Green Hydrogen Mission. Mains GS-II asks about storage and hydrogen as enablers of the energy transition.


Why Storage Is Needed

  1. Intermittency: solar follows the day; wind follows seasons (strongest in the south-west monsoon).
  2. Mismatch of timing: demand peaks in the evening, after solar output falls. Grid planners call the resulting net-demand curve the “duck curve”: a dip at midday and a steep ramp at sunset.
  3. Grid stability: the grid must hold its frequency close to 50 Hz. Storage can inject or absorb power in seconds.
  4. Firm renewable power: pairing solar with storage lets a project supply power round the clock, like a conventional plant.

Types of storage

FamilyExamplesTypical role
MechanicalPumped hydro storage, compressed-air storage, flywheelsLarge-scale, hours of storage
ElectrochemicalLithium-ion, sodium-ion, lead-acid, flow batteriesFast response; hours
ThermalMolten salt (CSP plants), ice storage for coolingStore heat or cold
ChemicalHydrogen, ammonia, methanolLong duration, seasonal storage, industry
ElectricalSupercapacitorsVery fast bursts, short duration

Pumped Storage Projects (PSPs)

graph TD
    A["Surplus power (noon solar)"] --> B["Pump water from lower reservoir
to upper reservoir"] B --> C["Energy stored as
potential energy of water"] C --> D["Evening peak: release water
through turbine"] D --> E["Electricity back to grid"] E --> F["Water returns to
lower reservoir"] F --> B
  • The same machine works as a pump (using power) and as a turbine-generator (producing power).
  • Round-trip efficiency is roughly 70–80%: some energy is always lost, but cheap noon power is turned into valuable evening power.
  • India (as of May 2026, CEA): 10 PSPs with about 7,425.6 MW in operation, about 15,870 MW under construction. The largest operating plant is Pinnapuram (1,680 MW, Andhra Pradesh); others include Sardar Sarovar (Gujarat), Tehri (Uttarakhand), Srisailam, Purulia (West Bengal), Nagarjunasagar and Kadamparai (Tamil Nadu).
  • Off-river (closed-loop) PSPs build two reservoirs away from a main river, reducing ecological impact.
  • Strengths: long life (decades), large scale, proven technology. Limits: suitable hilly sites, land, long construction time.

Batteries (बैटरी)

A battery stores energy as chemical energy and releases it as electricity through redox reactions. Each cell has an anode (negative), a cathode (positive), an electrolyte that carries ions, and a separator. During discharge, electrons flow through the outer circuit while ions move through the electrolyte. Charging reverses the process.

BatteryHow it works / chemistryStrengthsWeaknesses
Lead-acidLead and lead dioxide plates in sulphuric acidCheap, fully recyclable, mature (inverters, car starters)Heavy, low energy density, short cycle life
Lithium-ion (Li-ion)Lithium ions shuttle between a graphite anode and a metal-oxide or phosphate cathodeHigh energy density, long cycle life; dominates EVs, phones and grid batteriesNeeds critical minerals; fire risk if damaged or overheated
— NMC cathodeNickel–manganese–cobaltMore energy per kg (EVs)Uses costly cobalt and nickel
— LFP cathodeLithium iron phosphateSafer, longer life, no cobalt or nickel; preferred for grid storageLower energy density
Sodium-ionSodium ions instead of lithiumSodium is abundant and cheap (from salt); works well in the coldLower energy density; technology still scaling
Flow battery (e.g. vanadium redox)Energy stored in liquid electrolytes in external tanks, pumped through a cellCapacity grows simply with tank size; very long cycle life; suits long-duration storageBulky; low energy density
Solid-stateA solid electrolyte replaces the flammable liquidPotentially safer, higher energy densityStill in development

Battery energy storage systems (BESS) are large banks of batteries, usually LFP, connected to the grid or to a solar park.

India's battery and storage push (as of 2026)
  • PLI scheme for Advanced Chemistry Cell (ACC) batteries: approved May 2021, outlay ₹18,100 crore, target 50 GWh of domestic cell manufacturing. By 2026, 40 GWh had been awarded, but only a small fraction had been commissioned.
  • Viability gap funding (VGF) for BESS: a first scheme in 2023, then a second tranche of ₹5,400 crore for 30 GWh of BESS announced by the Ministry of Power in June 2025, funded from the Power System Development Fund.
  • Battery Waste Management Rules, 2022: extended producer responsibility (EPR) for collection and recycling of used batteries.

The critical-minerals problem

Li-ion batteries need lithium, cobalt, nickel, graphite and manganese. India imports nearly all of its lithium and cobalt, mostly as finished cells. Responses include critical-mineral auctions, overseas acquisitions through KABIL, recycling, and chemistries (LFP, sodium-ion) that avoid scarce metals.

Chhattisgarh angle: Katghora (कटघोरा) in Korba district was India’s first lithium block to be auctioned (June 2024). Do not describe it as a producing mine. The state’s coal-and-steel economy makes storage and hydrogen important for its own transition.


Fuel Cells (ईंधन सेल)

A fuel cell converts the chemical energy of a fuel (usually hydrogen) and oxygen directly into electricity, without burning it.

$$2\,\mathrm{H_2} + \mathrm{O_2} \;\rightarrow\; 2\,\mathrm{H_2O} + \text{electricity} + \text{heat}$$
  • At the anode, hydrogen splits into protons and electrons. Electrons flow through the external circuit (the current); protons pass through the electrolyte membrane; at the cathode they combine with oxygen to form water.
  • The only exhaust is water vapour, so a hydrogen fuel-cell vehicle has zero tailpipe emissions.
  • A fuel cell keeps producing power as long as fuel is supplied; a battery must be recharged.
TypeFeatureUse
PEM (proton exchange membrane)Low temperature (about 80 °C), quick startVehicles, buses
Solid oxide (SOFC)High temperature, fuel-flexibleStationary power
Alkaline (AFC)One of the oldest typesUsed in space missions

Battery EV vs fuel-cell EV: a battery EV stores electricity directly and is more efficient overall; a fuel-cell EV refuels in minutes and carries more energy for its weight, which suits long-haul trucks and buses.


Hydrogen (हाइड्रोजन) as an Energy Carrier

Hydrogen is the lightest element. It carries more energy per kilogram than any fuel, but very little per litre as a gas, so it must be compressed, liquefied or converted into another compound for storage. It is an energy carrier, not a primary source: energy must be spent to make it.

The colours of hydrogen

ColourMade fromCarbon outcome
GreyNatural gas by steam methane reforming (SMR)CO₂ released. Most of today’s hydrogen (refineries, fertiliser plants)
BlueNatural gas by SMRCO₂ captured and stored (CCUS)
Brown / blackCoal (gasification)High CO₂
TurquoiseMethane pyrolysis (splitting methane by heat)Solid carbon, not CO₂
Pink (purple)Electrolysis using nuclear powerLow carbon
GreenElectrolysis of water using renewable electricity (or certain biomass routes)Near-zero emissions

Electrolysis

Electrolysis uses electricity to split water: \( 2\,\mathrm{H_2O} \rightarrow 2\,\mathrm{H_2} + \mathrm{O_2} \). It is the reverse of a fuel cell.

ElectrolyserFeature
AlkalineMature, cheapest, uses potassium hydroxide solution
PEMCompact, responds quickly to variable solar and wind power; uses costly platinum-group metals
Solid oxideHigh temperature, potentially most efficient; can use waste heat

Storing and moving hydrogen

  • Compressed gas in high-pressure tanks.
  • Liquid hydrogen, cooled to about −253 °C, which costs a lot of energy.
  • Carriers: convert it to green ammonia or methanol, or bind it in liquid organic carriers, then recover it later.
  • Problem: hydrogen leaks easily (tiny molecule) and can make some steels brittle (hydrogen embrittlement).

Uses

SectorHow hydrogen helps
FertilisersGreen ammonia replaces grey hydrogen in urea production
RefineriesReplace grey hydrogen used to remove sulphur from fuels
SteelHydrogen-based direct reduction (H₂-DRI) of iron ore instead of coking coal; very relevant to Chhattisgarh’s steel belt (Bhilai, Raipur, Raigarh)
Heavy transport and shippingFuel cells, ammonia and methanol for trucks and ships
Long-duration storageStore surplus renewable power for days or seasons
National Green Hydrogen Mission (as of 2026)
  • Approved 4 January 2023; outlay ₹19,744 crore.
  • Target: 5 million tonnes a year of green hydrogen by 2030, with about 125 GW of associated renewable capacity.
  • SIGHT programme (Strategic Interventions for Green Hydrogen Transition): incentives for electrolyser manufacturing and green hydrogen production.
  • Green Hydrogen Standard (MNRE, August 2023): hydrogen counts as “green” only if its well-to-gate emissions are not more than 2 kg CO₂-equivalent per kg of hydrogen, averaged over 12 months. The Bureau of Energy Efficiency (BEE) is the nodal authority for accrediting certification agencies.
  • Green hydrogen hubs: in September 2025 MNRE recognised three ports as hubs: Deendayal (Kandla, Gujarat), V.O. Chidambaranar (Tuticorin, Tamil Nadu) and Paradip (Odisha).

Analysis for Mains

Storage: the missing piece of the transition

  1. Without storage, more solar means more midday surplus and a steeper evening ramp, forcing coal plants to cycle up and down.
  2. Pumped hydro offers cheap, long-life bulk storage; batteries offer speed and can be sited anywhere. They complement each other.
  3. Challenges: cost; mineral imports; fire safety; recycling; long project timelines for PSPs.
  4. Policy tools: VGF for BESS, PLI for cells, storage obligations for distribution companies, time-of-day tariffs that reward evening supply.

Green hydrogen: promise and caution

  1. Promise: decarbonises “hard-to-abate” sectors (steel, fertiliser, refining, shipping) that electricity alone cannot easily reach; cuts gas and ammonia imports; export opportunity.
  2. Caution: green hydrogen is still costlier than grey; electrolysis loses a large share of input energy; it needs water (about 9 litres per kg of hydrogen in theory, more in practice) and huge renewable capacity; infrastructure for storage and transport is new.
  3. Right use: use hydrogen where direct electrification is hard, and use batteries and direct electricity where it is easy.

Memory Tricks

Colours of hydrogen: 'Grey Gas, Blue Buried, Brown Burns coal, Green from the Grid of the sun, Pink from the Plant (nuclear), Turquoise leaves Toast (solid carbon)'
Only green comes from renewable electrolysis. Blue is grey plus carbon capture.
Fuel cell vs electrolyser
Fuel cell: hydrogen + oxygen → electricity + water. Electrolyser: electricity + water → hydrogen + oxygen. One is the mirror of the other.
Storage numbers: '18-50, 54-30, 19-5'
ACC PLI ₹18,100 crore → 50 GWh · BESS VGF 2025 ₹5,400 crore → 30 GWh · Green Hydrogen Mission ₹19,744 crore → 5 MMT by 2030.

Don’t Confuse

ThisvsThat
Fuel cell: makes electricity from hydrogenvsBattery: stores electricity; must be recharged
Green hydrogen: renewable electrolysisvsBlue hydrogen: natural gas + carbon capture
Grey hydrogen: SMR of natural gas (most hydrogen today)vsBrown hydrogen: coal gasification
LFP battery: no cobalt or nickel, safer, grid storagevsNMC battery: higher energy density, EVs
Flow battery: energy in liquid tanks, long durationvsLi-ion: energy in solid electrodes, compact
Pumped storage: stores energyvsConventional hydro: generates from river flow
PLI ACC (Ministry of Heavy Industries): making cellsvsBESS VGF (Ministry of Power): installing storage

Common Mistakes

MCQ traps
  • “Hydrogen is a primary source of energy.” False. It is an energy carrier; energy is spent to produce it.
  • “A fuel cell burns hydrogen.” False. It converts chemical energy into electricity electrochemically, without combustion.
  • “Blue hydrogen is made by electrolysis.” False. Blue hydrogen comes from natural gas with CO₂ captured.
  • “Pumped storage is a net source of electricity.” False. It consumes more energy than it returns; its value is in shifting power to peak hours.
  • “Katghora in Chhattisgarh is India’s first operating lithium mine.” False. It was the first lithium block auctioned (June 2024).
  • “Sodium-ion batteries need lithium.” False. They use sodium, which is abundant.

Practice

All questions below are original practice questions written in CGPSC style. They are not previous-year questions.

Level 1: Foundation

  1. The only exhaust from a hydrogen fuel cell is ________.
  2. Hydrogen produced by electrolysis using renewable electricity is called ________ hydrogen.
  3. The largest operating pumped storage project in India (2026) is ________ in Andhra Pradesh.
Answers
  1. Water (water vapour).
  2. Green hydrogen.
  3. Pinnapuram (1,680 MW).

Level 2: Prelims MCQs

Q1. Consider the following statements about hydrogen:

  1. Most hydrogen produced today is made from natural gas by steam methane reforming.
  2. Under India’s Green Hydrogen Standard, green hydrogen must have emissions of not more than 2 kg CO₂-equivalent per kg of hydrogen.
  3. A fuel cell produces hydrogen by passing electricity through water.

Which of the statements given above is/are correct?

  • (a) 1 only
  • (b) 1 and 2 only
  • (c) 2 and 3 only
  • (d) 1, 2 and 3
Answer and explanation
(b) 1 and 2 only. Statement 1 is correct: grey hydrogen from natural gas dominates today. Statement 2 is the 2023 MNRE standard (well-to-gate, 12-month average). Statement 3 describes an electrolyser; a fuel cell does the reverse, combining hydrogen and oxygen to make electricity.

Q2. Match List I (Hydrogen type) with List II (Production route):

List IList II
A. Grey1. Electrolysis using renewable power
B. Blue2. Natural gas reforming with CO₂ released
C. Green3. Natural gas reforming with CO₂ captured
D. Turquoise4. Methane pyrolysis yielding solid carbon
  • (a) A-2, B-1, C-3, D-4
  • (b) A-3, B-2, C-1, D-4
  • (c) A-2, B-3, C-1, D-4
  • (d) A-2, B-3, C-4, D-1
Answer and explanation
(c) A-2, B-3, C-1, D-4. Grey and blue both come from natural gas; blue adds carbon capture. Green uses renewable electrolysis. Turquoise splits methane into hydrogen and solid carbon.

Q3. Which one of the following is the main reason lithium iron phosphate (LFP) batteries are preferred for grid-scale storage?

  • (a) They have the highest energy density of all battery types
  • (b) They are safer, last longer and need no cobalt or nickel
  • (c) They store energy in liquid electrolytes held in external tanks
  • (d) They work without any electrolyte
Answer and explanation
(b). LFP cells trade some energy density for safety, long cycle life and freedom from cobalt and nickel. Weight matters less in a stationary grid battery. Option (c) describes a flow battery.

Q4. Which of the following ports were recognised as green hydrogen hubs by MNRE in 2025?

  1. Deendayal (Kandla)
  2. Paradip
  3. V.O. Chidambaranar (Tuticorin)
  4. Jawaharlal Nehru Port (Nhava Sheva)

Select the correct answer using the code given below:

  • (a) 1 and 2 only
  • (b) 1, 2 and 3 only
  • (c) 2, 3 and 4 only
  • (d) 1, 2, 3 and 4
Answer and explanation
(b) 1, 2 and 3 only. In September 2025 MNRE recognised Deendayal (Gujarat), V.O. Chidambaranar (Tamil Nadu) and Paradip (Odisha) as green hydrogen hubs under the National Green Hydrogen Mission.

Level 3: Mains Answer Writing

Q1. (60 words) What is a fuel cell? How does it differ from a battery?

Model answer outline
  • Definition: electrochemical device converting hydrogen and oxygen into electricity, water and heat without combustion.
  • Working: anode splits H₂ into protons and electrons; electrons form the current; water forms at the cathode.
  • Difference: a battery stores a fixed charge and must be recharged; a fuel cell runs as long as fuel is supplied.
  • Use: buses, trucks, backup power.

Q2. (150–200 words) “Energy storage is the key to India’s renewable energy future.” Discuss with reference to the technologies available and the policy support.

Model answer outline
  • Intro: Non-fossil capacity is over 54% of India’s 552 GW (July 2026), but solar and wind are intermittent and the evening peak still relies on coal.
  • Technologies:
    1. Pumped storage: about 7.4 GW operating (May 2026), Pinnapuram largest; cheap bulk storage.
    2. Batteries: Li-ion (LFP for grid), sodium-ion, flow batteries for long duration.
    3. Green hydrogen and ammonia for seasonal storage and industry.
  • Policy: PLI ACC (₹18,100 crore, 50 GWh); BESS VGF (₹5,400 crore for 30 GWh, 2025); Green Hydrogen Mission (2023); Battery Waste Management Rules, 2022.
  • Challenges: cost, critical minerals (lithium, cobalt), safety, recycling, slow PSP construction.
  • Chhattisgarh angle: Katghora lithium auction (2024); coal-heavy grid in the state needs storage to absorb solar; steel industry as a future hydrogen user.
  • Conclusion: Storage turns cheap but variable renewable power into reliable power; without it the 500 GW target cannot deliver a clean grid.

Quick Revision Table

FactDetail
Duck curveMidday dip and evening ramp in net demand as solar grows
Pumped storage, India10 PSPs, ~7,425.6 MW operating (May 2026); Pinnapuram 1,680 MW largest
Round-trip efficiency (PSP)Roughly 70–80%
Li-ionGraphite anode; NMC or LFP cathode
LFPSafer, long life, no cobalt or nickel; grid storage
Sodium-ion / flow batteryAbundant sodium / liquid electrolytes in tanks, long duration
PLI ACCMay 2021; ₹18,100 crore; 50 GWh
BESS VGF2023 scheme; second tranche ₹5,400 crore, 30 GWh (June 2025)
Battery Waste Management Rules2022; EPR
Fuel cellH₂ + O₂ → electricity + water; no combustion; PEM for vehicles
Hydrogen coloursGrey (gas), blue (gas + CCS), brown (coal), turquoise (pyrolysis), pink (nuclear), green (RE electrolysis)
Green Hydrogen Mission4 Jan 2023; ₹19,744 crore; 5 MMT/yr by 2030; ~125 GW RE; SIGHT
Green hydrogen standard≤ 2 kg CO₂e per kg H₂ (Aug 2023); BEE accredits verifiers
Hydrogen hubsDeendayal, V.O. Chidambaranar, Paradip (Sept 2025)
CG linkKatghora: first lithium block auctioned (June 2024); steel belt for H₂-DRI

Key Takeaways

Key Takeaways
  1. Storage moves cheap renewable power to the evening peak; pumped hydro gives bulk, batteries give speed.
  2. Li-ion dominates; LFP suits grids; sodium-ion and flow batteries reduce mineral dependence and add duration.
  3. A fuel cell is an electrolyser in reverse; its only exhaust is water.
  4. Only green hydrogen comes from renewable electrolysis; India’s standard is 2 kg CO₂e per kg H₂.
  5. Policy pillars: PLI ACC, BESS VGF, Green Hydrogen Mission (5 MMT by 2030), hydrogen hubs.

What’s Next

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