• Recently, the Ministry of Power has notified Green Hydrogen/Green Ammonia Policy for production of Green Hydrogen or Green Ammonia using renewable sources of energy.
  • National Hydrogen Mission launched in 2021 aims to aid the government in meeting its climate targets and making India a green hydrogen hub.
  • Under the policy, the government is offering to set up manufacturing zones for production, connectivity to the ISTS (Inter-State Transmission System) on priority basis, and free transmission for 25 years if the production facility is commissioned before June 2025.
  • This means that a green hydrogen producer will be able to set up a solar power plant in Rajasthan to supply renewable energy to a green hydrogen plant in Assam and would not be required to pay any inter-state transmission charges.
  • Besides, producers will be allowed to set up bunkers near ports for storage of green ammonia for export by shipping.
  • Production target has also been raised five times from 1 million tonnes (m) to 5 mt by 2030.
  • In October, 2021 it was announced that India is targeting initially around 1 million tonnes annual green hydrogen production by 2030.
  • Manufacturers of Green hydrogen and ammonia are allowed to purchase renewable power from the power exchange or set up Renewable Energy (RE) capacity themselves or through any other developer, anywhere.
  • Further, it provides facility for producers to bank any surplus renewable energy generated with discoms (power distribution companies) for upto 30 days and use it as required.
  • Discoms may also procure renewable energy to supply green hydrogen producers but will be required to do so at a concessional rate which will only include the cost of procurement, wheeling charges and a small margin as determined by the state commission, under the new policy.
  • Such procurement would also count towards a state’s Renewable Purchase Obligation (RPO) under which it is required to procure a certain proportion of its requirements from renewable energy sources.
  • To ensure ease of doing business a single portal for carrying out all the activities including statutory clearances in a time bound manner will be set up by MNRE (Ministry of New and Renewable Energy).

Way Forward

India has the potential to bring down the cost of green hydrogen by using low-cost renewable generating plants and cost-curtailment experience gained through solar and wind reverse auctions.


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