Govt mandates green hydrogen purchase for some sectors

R K Singh, Minister of Power, New and Renewable Energy, announced on Tuesday that the purchase of green hydrogen will be made mandatory in certain sectors, similar to the renewable purchase obligation. RPO (Renewable Purchase Obligation) requires bulk purchasers such as discoms, open access consumers, and captive users to purchase a certain percentage of renewable energy from their total electricity consumption. To meet the RPO requirements, they can also purchase RE certificates from renewable energy producers. In a virtual press conference on 'India's role as a Global Champion for the Energy Transition theme at the UN High-Level Dialogue on Energy 2021,' Singh said that, like RPO, the hydrogen purchase obligation would ensure that the product sold. Green hydrogen differs from grey hydrogen, which is made from methane and releases greenhouse gases into the atmosphere, and blue hydrogen, which captures those emissions and stores them underground to prevent climate change. Green hydrogen is distinguished from grey hydrogen, which is produced from methane and emits greenhouse gases into the atmosphere, and blue hydrogen, which is produced using renewable energy and electrolysis to split water and captures emissions and stores them underground, preventing climate change. In the case of solar, in December last year's auctions for projects, the tariff had dropped to less than Rs 2 per unit. Singh stated that domestic manufacturing capacity would be increased to 70 GW by December 2022, in response to the dumping of cheap solar equipment in the country. To meet the ambitious target of 175 GW of renewables by 2022, the country's renewable projects have been hampered by Covid-19's lockdown and other restrictions. India will have the opportunity to share its experiences with the entire world at the UN High-Level Dialogue on Energy 2021. With only about ten years until the global goal of ensuring affordable, reliable, sustainable, and modern energy for all Sustainable Development Goal (SDG-7) is met, Singh said strong political commitments and innovative ways of expanding energy access, promoting renewable energy, and increasing energy efficiency are needed. India will finalise its Energy Compacts moving forward, according to Singh, based on its goal of 450 GW of renewable energy capacity by 2030, with a focus on solar, wind, and bio-energy storage systems, green hydrogen, and international cooperation through the International Solar Alliance. Energy Compacts are voluntary commitments made by the Member States and non-state actors such as businesses, regional/local governments, and non-governmental organisations. These stakeholders sign an Energy Compact that outlines the specific actions they will take to help achieve SDG-7. India is participating in several key events as part of the preparations for the September dialogue. India, along with other Global Champions for the theme, will co-host the Ministerial Thematic Forum for Energy Transition on June 23, 2021, among other events. Image Source Also read: Strategic Clean Energy Partnership: US, India set up hydrogen task force Also read: NTPC to set up two pilot projects on hydrogen fuel cells