Government working on policy mechanism to promote green hydrogen for renewable energy

In alignment with the National Green Hydrogen Mission's objectives, the Ministry of New and Renewable Energy is formulating policies to facilitate the widespread adoption of green hydrogen for uninterrupted renewable energy supply.

Union Minister for Power and New and Renewable Energy RK Singh chaired a meeting in New Delhi on Tuesday, focusing on integrating green hydrogen with solar and wind energy to ensure round-the-clock renewable energy availability.

Representatives from key stakeholders including the Ministry of Power, NTPC, Central Electricity Commission, and Solar Energy Corporation of India participated in the meeting.

During the meeting, officials explored various strategies for utilising green hydrogen as a storage solution to meet both continuous and peak power demands. Policy mechanisms under consideration include a Contract for Difference (CfD) approach, which involves determining a predetermined "strike price" to bridge the gap between market rates and agreed-upon prices.

RK Singh instructed officials to draft comprehensive scheme guidelines considering economic factors, technological advancements, and market dynamics within the green hydrogen and power sectors. Emphasising the increasing energy demands, the minister highlighted the significance of continuous renewable energy to lower costs and enhance affordability.

The minister emphasised leveraging insights from initial projects to scale up future endeavours, paving the way for larger-scale implementation of continuous renewable energy solutions.

The key objective of the National Green Hydrogen Mission is to make India the global hub for production, usage and export of green hydrogen and its derivatives. The Mission will lead to significant decarbonisation of the economy, reduced dependence on fossil fuel imports, and enable India to assume technology and market leadership in green hydrogen.