The thirsty gigawatts: Can India’s renewable energy boom survive its water crisis?

As India sets its sights on a future powered by clean energy, an unexpected obstacle is emerging water. While solar panels and wind turbines symbolise a greener tomorrow, the infrastructure behind them requires water in surprising amounts. And with water stress already a concern in many parts of the country, the rapid expansion of renewable energy could put additional pressure on this scarce resource.

India’s renewable energy vision

India is one of the world’s fastest-growing renewable energy markets. With a long-term goal of reaching net-zero carbon emissions by 2070, the country is planning a massive expansion of solar and wind power. The total renewable energy potential is estimated at a staggering 24,000 gigawatts (GW), but reaching even 7,000 GW—needed to meet net-zero targets—comes with serious land and water challenges.

A recent study by the Council on Energy, Environment and Water (CEEW) study, ‘Unlocking India’s renewable energy and green hydrogen potential: An assessment of land, water, and climate nexus,’ reveals that scaling renewables beyond the relatively manageable 1,500 GW mark will trigger escalating challenges, with water scarcity emerging as a critical concern. 

To reach net-zero emissions by 2050, we need a lot of hydrogen made with renewable energy. However, this uses tons of land and water. A study by Tonelli D et al. (2023) shows many countries won't have enough of their own resources to make all the hydrogen they need without causing water or land shortages. This will lead to some countries, including India, needing to import hydrogen, while others (like those in parts of Africa, South America, and Australia) could become major hydrogen exporters due to their abundant resources.

India can go green — but the road to net-zero isn’t easy

While the country boasts a massive renewable energy (RE) potential of over 24,000 GW, tapping into this fully isn’t easy. Social, environmental, and economic roadblocks lie ahead. Let’s break it down. Onshore wind could generate 1,790 GW, but much of this lies on farmland (66%) and rangeland (27%), leading to land conflicts. Offshore wind has promise too—2,435 GW—but only 30% is in shallow waters, which means we’d need costlier floating turbines. Solar power? India has over 20,000 GW potential, but a whopping 88% of it suffers from seasonal dips in performance.

The green hydrogen factor

One of the key pieces in India’s clean energy puzzle is green hydrogen. This fuel is produced using renewable electricity and water through a process called electrolysis, which splits water into hydrogen and oxygen. Green hydrogen is central to India’s decarbonisation strategy, especially for sectors like heavy industry and transportation.

However, producing green hydrogen at scale requires large amounts of water. India’s National Green Hydrogen Mission aims to produce 5 million tonnes per year by 2030, scaling up to around 40 million metric tonnes per year (MTPA) by 2050. Meeting these targets could significantly increase water demand, particularly in regions already struggling with water availability.

Wind–solar hybrid (WSH) setups are ideal, offering steady power and reducing production costs. India could produce around 80 million tonnes per year (MTPA) of green hydrogen this way. Encouragingly, 56 MTPA can be produced in regions with no major water stress—mainly in western and southern India. But only 25% of surface water is available year-round, so storing monsoon water adds costs. Still, India could produce 40 MTPA at under $3.5/kg, especially in Gujarat, Karnataka, and Maharashtra.

Note: This figure shows how much water countries will need to produce hydrogen in 2020 and 2050, highlighting potential water scarcity by comparing water demands to available resources, with red areas indicating over-use.

This means that the production process itself has a very low, or even zero, carbon footprint. While green hydrogen offers a pathway to a cleaner energy future, it's essential to address the water implications to ensure its sustainability. This water demand threatens to worsen existing water scarcity, particularly in arid and semi-arid regions where much of the solar potential lies.

Furthermore, the study points out that while states like Odisha and Madhya Pradesh have significant renewable energy potential and land banks, the water availability in these areas must be meticulously assessed. The seasonality of solar power, coupled with the continuous water demand for green hydrogen production, necessitates robust water management strategies.

Multiple challenges, one energy transition

Aside from water, land is another major challenge. Renewable energy projects need large tracts of land, often leading to competition with agriculture, forests, or local communities. Population density and land conflicts limit where these projects can be located.

There are also climate-related risks. As energy projects expand into regions with higher climate vulnerability, insurance companies may be reluctant to offer coverage due to risks like floods, droughts, or extreme temperatures.

Holistic approach to water and renewable energy

To make India’s clean energy transition sustainable, we must address the land-water-energy nexus head-on. To address these critical water-related issues, the CEEW study underscores the need for a holistic approach and makes several recommendations:

• Conduct detailed water assessments: Before planning renewable energy projects, it’s crucial to analyse the availability and quality of water at potential sites. This includes checking regional water stress, seasonal flows, and competing demands from agriculture or domestic use.

• Integrate land and water planning: Instead of focusing only on technical solar or wind potential, land banks should also account for water resources. Areas with low water stress and renewable energy feasibility should be prioritised. Solutions like agro-voltaics (growing crops under solar panels) and rooftop solar in dense urban areas can reduce land and water pressure.

• Revise water management policies: India’s existing water policies were not designed with the energy transition in mind. New regulations must ensure that water used for hydrogen production or solar operations is sourced sustainably, reused where possible, and does not take away from critical uses like drinking water or irrigation.

• Invest in water-saving technologies: Research and development should focus on improving electrolyser efficiency and promoting closed-loop systems that reuse water. Technologies that minimise water use during panel cleaning or cooling can also make a big difference.

• Build resilience into project planning: All stakeholders—government, developers, insurers, and communities—should be involved early in project planning. This helps in understanding local risks and creating more resilient and commercially viable projects.

The CEEW study, for the first time, goes into granular details of the country’s landmass to map out where we can build out renewable energy and green hydrogen projects while addressing the challenges of land, people, and compounding, non-linear climate risks. Its findings are a wake-up call for policymakers, energy developers, and water managers alike.

India’s renewable energy revolution must be built not just on megawatts but on a foundation of water sustainability, ecological sensitivity, and community inclusion. Only then can we truly power the future without compromising our natural resources.

A CEEW interactive — The great Indian RE challenge   Play it here.

Video — Every question you wanted to ask on India’s road to net zero

Study citation: Mallya, Hemant, Deepak Yadav, Anushka Maheshwari, Nitin Bassi, and Prerna Prabhakar. Unlocking India's RE and Green Hydrogen Potential: An Assessment of Land, Water, and Climate Nexus. New Delhi: Council on Energy, Environment and Water.