Government Working on Policy Mechanism to Integrate Green Hydrogen with Renewable Energy Sources
In alignment with the government’s commitment to ramping up renewable energy adoption and leveraging green hydrogen, the Ministry of New and Renewable Energy is actively strategizing policies to facilitate the utilization of green hydrogen for round-the-clock electricity provision.
Union Minister for Power and New and Renewable Energy, Shri R. K. Singh, presided over a pivotal meeting in New Delhi on February 6, 2024, focusing on integrating green hydrogen with solar and wind energy sources to ensure uninterrupted renewable energy supply. Key stakeholders were present at the gathering, including officials from the Ministry of New and Renewable Energy, Ministry of Power, NTPC, Central Electricity Commission, and Solar Energy Corporation of India.
Deliberations and Policy Formulation
The discussions delved into various avenues for utilizing green hydrogen as a storage medium to support continuous power supply and meet peak demand. Additionally, the meeting deliberated on viable mechanisms for government support for such initiatives. Among the policy mechanisms under consideration is one based on the Contract for Difference (CfD) methodology, which hinges on the discrepancy between market prices and an agreed-upon “strike price.”
The Union Minister for Power and New & Renewable Energy directed officials to draft scheme guidelines tailored to green hydrogen’s economic, technological, and market dynamics and the power sector. Emphasizing the escalating power demand, the Minister highlighted the significance of round-the-clock renewable energy in reducing costs and enhancing affordability.
The Minister underscored the importance of learning from initial projects to pave the way for larger-scale initiatives in the future. This strategic approach uses insights from early implementations to spearhead more ambitious endeavors.
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