Green hydrogen is progressively being identified as indispensable for decarbonising the dynamic global energy landscape. Since the electricity used to power electrolysers represents the dominant component of green hydrogen production costs, streamlining renewable energy (RE) costs is central to making green hydrogen affordable and accessible. In this context, the Capacity Utilisation Factor (CUF), the ratio of actual output to the maximum possible output at full capacity, serves as a robust metric to evaluate the performance of renewable energy plants in real-time. This study investigates the economic viability of green hydrogen production across select Indian states-Kerala, Tamil Nadu, Gujarat, Karnataka, Rajasthan, Andhra Pradesh, and Odisha-by examining how state-specific solar and wind CUFs influence the overall Levelized Cost of Hydrogen (LCOH). Through a comparative, data-driven approach, the study explores the potential of RE availability and plant performance in sculpting the economics of green hydrogen. Additionally, the study highlights the need for targeted state-specific incentives using differentiated solar and wind tariffs, which could drive down green hydrogen production costs through economies of scale. The study aims to support informed policymaking for India's nascent green hydrogen sector, thereby advancing the goals of India's National Green Hydrogen Mission.
