New Delhi: Renewable energy projects, especially on green hydrogen, will receive a big boost in the Union budget to be presented in Parliament on February 1, officials at the power and renewable energy ministries said, with the government likely to announce production-linked incentives to manufacture electrolysers and a policy for energy storage systems.
India’s plan to harness green hydrogen was first announced by finance minister Nirmala Sitharaman in her budget speech last year. Later, Prime Minister Narendra Modi announced the National Hydrogen Energy Mission in his Independence Day speech in August. Green hydrogen is produced using renewable energy through electrolysis.
The government will soon announce a production-linked incentive to make electrolysers in India to achieve economies of scale in local production of green hydrogen, a ministry official said on Friday. Besides, incentives on export of the green hydrogen are also being discussed.
The power ministry along with the new and renewable energy ministry has prepared a National Hydrogen Policy that will be released by the first week of February, power minister RK Singh said at an event organised by the Confederation of Indian Industry on Thursday.
India will reduce carbon emissions by 1 billion tonnes by 2030, Modi had announced at the Glasgow climate summit in November. The commitment includes meeting 50% of India’s energy requirements from renewable sources.
{{/usCountry}}India will reduce carbon emissions by 1 billion tonnes by 2030, Modi had announced at the Glasgow climate summit in November. The commitment includes meeting 50% of India’s energy requirements from renewable sources.
{{/usCountry}}The hydrogen policy intends to give free transmission of electricity for 25 years for those who venture into producing green hydrogen. “So, you can generate power for making hydrogen in Rajasthan or transport it to Guwahati or to Barauni refinery (to make hydrogen),” Singh had said.
To attract companies from across the globe to invest in hydrogen energy, the policy will feature dollar-denominated bids and offer land in renewable energy parks to set up generating units. For storage, land will be allotted near ports to create bunkers for green hydrogen or ammonia.
A second policy the power ministry is working on is to establish energy storage systems, including pumped storage hydropower. It aims to promote the creation of storage systems on a large scale across the country.
The government is likely to make storage a part of the renewable purchase obligation for all power generators and distributors. Energy storage systems are considered essential for a smooth transition from coal-based to renewable energy sources.