Govt devising policies to boost green hydrogen for round-the-clock RE

India is the third largest consumer of energy, oil and LPG. India's demand for energy is expected to double by 2045

To promote the adoption of renewable energy sources, particularly green hydrogen, the Ministry of New and Renewable Energy (MNRE) is developing strategies to integrate green hydrogen into the energy mix to support round-the-clock electricity supply.

The Union Minister for Power and New and Renewable Energy, R K Singh, chaired a meeting in New Delhi on Tuesday to deliberate on the utilisation of green hydrogen in conjunction with other renewable sources such as solar and wind energy. Representatives from key departments, including the Ministry of Power, NTPC, Central Electricity Commission, and Solar Energy Corporation of India, also participated in the session.

Discussions revolved around exploring various avenues for utilising green hydrogen as a storage medium to meet round-the-clock power requirements and peak demand periods. Additionally, policy mechanisms aimed at providing government support for such initiatives were discussed. Among the proposed policy mechanisms is one based on the Contract for Difference (CfD) methodology, designed to bridge the gap between market prices and an agreed-upon "strike price."

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Minister R K Singh directed officials to draft scheme guidelines based on economic viability, technological advancements, and current and future market dynamics within the green hydrogen and power sectors.

Earlier on Tuesday, Prime Minister Narendra Modi inaugurated India Energy Week 2024 in Goa and engaged in a roundtable discussion with global oil and gas CEOs and experts. In his address, the prime minister spoke on the expanding role of the energy sector in India's economic growth and the significance of the National Green Hydrogen Mission, envisaging India as a hub for hydrogen production and export. He stated that India's green energy sector had the potential to attract investors and drive industrial growth.

The prime minister also highlighted that the recent Budget 2024 session allocated Rs 11 trillion towards infrastructural developments, stating that a substantial portion of this would go towards the energy sector. India is reportedly the third largest consumer of energy, oil and LPG. India's demand for energy is expected to double by 2045.

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Despite this, the prime minister asserted, "India is not just meeting its needs but is also determining the global direction."