In line with its commitment to bolster the utilization of renewable energy sources, particularly green hydrogen, the Ministry of New and Renewable Energy has embarked on devising a policy framework to facilitate the integration of green hydrogen for ensuring round-the-clock electricity supply.
Under the aegis of Union Minister for Power and New and Renewable Energy, Shri R. K. Singh, a pivotal meeting was convened in New Delhi on February 6, 2024, to deliberate on the strategic utilization of green hydrogen in conjunction with solar and wind energy. Notable attendees included officials from the Ministry of Power, NTPC, Central Electricity Commission, and Solar Energy Corporation of India.
Discussions at the meeting centered around exploring viable options for leveraging green hydrogen as a storage medium to support round-the-clock power supply and address peak demand scenarios. Additionally, deliberations were held on devising mechanisms for government support to facilitate such projects, with considerations including the Contract for Difference (CfD) methodology.
The CfD mechanism, premised on the variance between market prices and an agreed-upon “strike price,” is being explored as a potential avenue to incentivize investments in green hydrogen projects.
Following thorough deliberations, the Union Minister directed officials to draft comprehensive scheme guidelines, taking into account the economic viability, technological advancements, and prevailing market conditions in both the green hydrogen and power sectors. Emphasizing the increasing power demand, the Minister underscored the pivotal role of round-the-clock renewable energy in mitigating costs and ensuring affordability.
Furthermore, it was highlighted that insights gleaned from the implementation of initial projects would inform the undertaking of larger-scale initiatives in the future, underscoring the government’s commitment to fostering innovation and sustainability in the energy sector.
