Distributive policy

Green Hydrogen Policy and Way Forward – The New Indian Express

Express press service

NEW DELHI: Prime Minister Narendra Modi, in his Independence Day speech last year, made an aggressive plea for green energy and announced the National Hydrogen Mission. The objective of the mission is to help the country achieve its goal of producing 5 million tonnes of “green hydrogen” by 2030 and the associated development of renewable energy capacity. This led to intense efforts to achieve the goal. Subsequently, the Union Ministry of Energy introduced the Green Hydrogen and Ammonia Policy on February 17, 2022.

Hydrogen and ammonia are seen as fuels of the future and ideal substances to replace fossil fuels. Since the production of these fuels consumes a lot of energy, the use of energy from renewable energies to produce green hydrogen and green ammonia is one of the main safety requirements. sustainable energy of the country. The government is therefore taking various measures to facilitate the transition from fossil fuels to green hydrogen / green ammonia.

What does the policy say?

The green hydrogen and ammonia policy announced by the government has a lot to do with promoting renewable energy in the country. According to the policy, manufacturers of green hydrogen/ammonia can purchase renewable energy from the power exchange or set up renewable energy capacity themselves or through any other developer, anywhere.

In addition, the policy grants free access to obtain electricity within 15 days of the request. The builder can bank their renewable energy for 30 days with distribution companies and take it back when needed. “The policy promotes the production of renewable energy (RE), as RE will be the basic ingredient for the production of green hydrogen. This, in turn, will help meet international clean energy commitments,” the Department of Energy said.

Distributor licenses can purchase and supply renewable energy to green hydrogen/green ammonia manufacturers in their states at preferential prices, which will only include the cost of supply, transportation costs and a small margin determined by the state commission.

The government, in its policy, has also mentioned that the green hydrogen/ammonia manufacturers and the renewable energy plant will be connected to the grid as a priority in order to avoid any procedural delays. It will waive interstate transmission fees for 25 years to manufacturers of green hydrogen and green ammonia for projects commissioned before June 30, 2025.

The benefit of the renewable purchase obligation (RPO) will be granted to the hydrogen/ammonia manufacturer and the concessionaire for the consumption of renewable energy. The government has set up a single portal for carrying out all activities. Connectivity, on the production side and on the green hydrogen / green ammonia manufacturing side, to the ISTS of renewable energy capacity set up for the purpose of manufacturing green hydrogen / green ammonia is given priority.

Last but not least, green hydrogen/green ammonia manufacturers will be allowed to set up bunkers near ports for the storage of green ammonia for export/shipping use. The land for storage for this purpose will be provided by the respective port authorities against payment.

Expert Opinions

According to energy experts, the National Hydrogen Mission is a clear commitment by the Indian government to a greener future for our coming generations. They hope India will reach its target of 500 GW of renewable energy by 2030.

“A specific policy aimed at bringing production costs down to sustainable levels will make hydrogen competitive and scalable. This will make it attractive for use not only in commercial and industrial areas, but potentially also in the critical transportation sector across the country over the next few years as fuel cell technology matures further, particularly for trucks, which account for more than 40% of the total transport fuels consumed today,” said Gaurav Moda, head of energy in India, EY.

Hemant Mallaya, Senior Program Officer, Council on Energy, Environment and Water (CEEW), said the policy will benefit all states, where renewable energy needs to be channeled from other states. “CEEW analysis indicates that the cost of producing green hydrogen could drop by 17% in a state such as Uttar Pradesh (UP) due to the removal of central transmission charges when electricity is transported This policy will benefit all states where renewable energy needs to be delivered from other states,” Mallya said.

Manoj K Upadhyay, Founder and Chairman of ACME Group, believed that the policy is the first concrete step in the direction of creating a regulatory and enabling environment for the green hydrogen and ammonia sector in India. He believes that with this policy, the government has attempted to meet some of the key industry demands for open access, a banking network and faster approvals for green hydrogen and ammonia projects. . “We particularly welcome the arrangements to set up bunkers near ports for the export of green ammonia,” Upadhyay said.

Despite the initial euphoria, some experts remain wary. “The interstate transport fee waiver policy was only an enabling policy, not the main hydrogen mission policy which is expected to be released in the coming weeks, says Hemant Mallya of CEEW. India has publicly said there will be two key aspects in the mission document – ​​a production-linked incentive (PLI) scheme for the manufacture of electrolyzers and blending standards for green hydrogen – which Mallya says are missing from current policy.

Politics in a nutshell

Green hydrogen/ammonia manufacturers will be allowed to purchase renewable energy from the power exchange or build renewable energy capacity themselves or through any other developer

The policy grants free access to obtain electricity within 15 days of the request. The manufacturer can store renewable energy for 30 days with distribution companies and take it back when needed. Distribution licensees can purchase and supply renewable energy to green hydrogen/green ammonia manufacturers in their states at preferential prices

Renewable energy plants will be connected to the grid as a priority to avoid any procedural delays