Green Hydrogen Prices Will Be Lowest In India; Practical Alternative For Energy Storage: RK Singh
The price of green hydrogen will be the lowest in India and it will be a practical alternative for energy storage, said Union Power Minister RK Singh on Friday in New Delhi.
Speaking at the special ministerial session of the fourth international conference and exhibition on clean energy, he said that if green hydrogen is used for storage, continuously available renewable energy will only cost roughly Rs 6 per unit.
Singh added, "Green hydrogen is cheaper than gas and battery energy storage systems. We have come up with a pilot bid for about 100 MW which we hope will establish the benchmark. Once we are able to use green hydrogen for our energy requirements, all supply chain issues such as the availability of lithium-ion batteries will be resolved."
The minister also stated that the government will make green hydrogen and use it as storage. "The average price of power in the energy exchange has recently been Rs. 8 per unit, so if our cost for round-the-clock renewable energy comes to Rs. 6 per unit, we are in business. That is what the future is: renewables. The future is here, not far away," he mentioned.
The minister informed the sector that the fundamental legal framework for the carbon market had been developed and that the government was considering allowing the sector to obtain carbon credits for green hydrogen and green ammonia that are exported from India.
According to Singh, this will provide the sector with yet another advantage and make the Indian industry completely competitive.
The minister claimed that India's renewable energy sector has advanced to a level where it can compete globally. Singh assured the business community that the government has made sure to clear the way for the sector's expansion.
"We have been leading with policy papers, rules and regulations, opening new doors. We came with Green Open Access Rules, where we have given the right for anybody to set up capacity anywhere and transfer it to wherever they want. I have written to all industry captains to switch over from thermal to renewables, this shift will also bring down the price of energy," he said.
The minister stated that open access is in line with the Electricity Act of 2003's spirit and that the Act includes deadlines for granting open access.
He said that the energy demand of the country will continue to grow rapidly since our economy is growing fast. "We need energy demand as fast as possible to meet this demand. We will make the electricity required for our growth. If our price for round-the-clock renewable energy is anything to go by, then we will not have to go the thermal way, we will adopt the renewable path. About 42 per cent of our capacity is from renewable sources already," he added.
