In a significant stride towards bolstering the utilization of renewable energy and green hydrogen, the Ministry of New and Renewable Energy is charting out a comprehensive framework to promote their integration for round-the-clock electricity provision. Spearheaded by Union Minister RK Singh, a pivotal meeting convened in New Delhi on February 6, 2024, delineated strategies to harness the potential of green hydrogen in tandem with solar and wind energy for seamless renewable power supply.
Attended by officials from the Ministry of New and Renewable Energy, Ministry of Power, NTPC, Central Electricity Commission, and Solar Energy Corporation of India, the meeting delved into multifaceted approaches for leveraging green hydrogen as a storage medium to meet both continuous power needs and peak demand periods.
Foremost among the deliberations was the exploration of policy mechanisms to facilitate such initiatives. A standout proposal under consideration is a framework based on the Contract for Difference (CfD) methodology. This approach hinges on the disparity between prevailing market prices and a predetermined ‘strike price,’ offering incentives to green hydrogen projects to make them economically viable.
Union Minister RK Singh underscored the urgency of drafting scheme guidelines that are grounded in the economic landscape, technological advancements, and the evolving market dynamics of both green hydrogen and the power sector. Emphasizing the surging power demand, Singh highlighted the pivotal role of round-the-clock renewable energy in mitigating costs and rendering renewable energy more accessible to all strata of society.
Singh also emphasized the importance of learning from initial endeavours, with plans to leverage insights from pioneering projects to scale up future endeavours. This approach reflects a commitment to fostering innovation and optimizing strategies for larger-scale implementations in the renewable energy landscape.
The move underscores the government’s unwavering commitment to steering India towards a sustainable energy future. By intertwining green hydrogen with solar and wind energy, policymakers aim to not only diversify the energy mix but also bolster energy security and mitigate environmental impact.
