Wednesday, July 6, 2022

Green hydrogen bids to be out in 4-5 months; bids to be dollar denominated: RK Singh

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  • A Cabinet note on green hydrogen purchase obligations has already been drawn up and circulated for comments, said Singh
  • The building energy efficiency initiatives announced by BEE will prepare the stakeholders to take energy efficiency to the residential sector, said Power Secretary Alok Kumar

New Delhi: The Ministry of Power plans to come out with the first green Hydrogen bid in the next 4-5 months and the bids will be dollar denominated, said Union Power Minister RK Singh. “We have set a target for ourselves to come out with the first green hydrogen bid in the next 4-5 months. We have had extensive discussions and interactions with the ministries of petroleum, fertilisers and steel. These are the sectors which consume hydrogen. Currently, they are consuming grey hydrogen, which is drawn from natural gas, which is imported. We have proposed to put a green hydrogen purchase obligation. And in consultation with these ministries and Niti Aayog, we have worked out a trajectory for green hydrogen purchase obligation so that we provide the market,” said Singh during a virtual press interaction on Friday at the launch of New Initiatives in Building Energy Efficiency.

Cabinet note circulated for comments; green hydrogen bid being designed

While asserting that India plans to be a leader in green hydrogen, Singh said that a Cabinet note on green hydrogen purchase obligations has already been drawn up and circulated for comments. He added that after the proposal is cleared by the Cabinet, the ministry will announce the bids. “A Cabinet note has been drawn up and circulated for comments. And our bid is being designed. Once we get the comments, we will go to the Cabinet. After the Cabinet clears it, we will come out with bids.” He added that the bids will be dollar denominated.

“Our estimates show that the price of green Hydrogen will be very, very competitive. So, we may not even need this purchase obligation. So, let’s see how it goes. We have plans to keep the purchase obligation in place for two years, after which the demand will be created by the market itself,” said Singh.

Singh tells BEE: Make energy-efficient buildings aspirational

Launching a number of energy-efficiency initiatives for buildings, the minister urged the Bureau of Energy Efficiency (BEE) to make the idea of energy-efficient buildings aspirational. He also asked BEE to expand its training programme in order to make the initiative a success. 

Stressing on the importance for India to start making its commercial buildings energy-efficient, Power Secretary Alok Kumar said that the initiatives announced by BEE will prepare the stakeholders to take energy efficiency to the residential sector, which would be the next goalpost in India’s energy efficiency plan. “There’s also a plan to amend the Energy Conservation Act to make the legal framework applicable for residential sector. So this work will very handy as and when we make it legally mandatory in the framework,” said Kumar.

“The idea is to make it aspirational to stay in an energy-efficient house. BEE can conduct social media campaigns to generate awareness on importance of star-rated instruments and make it fashionable to stay in an energy efficient house. Bring in architects, builders under your canvas to make this initiative successful,” said the Power Secretary.

Singh calls out developed nations on carbon emission commitments

Singh said that India’s achievements in carbon emission reduction is unparalleled across the world, and called out developed nations for merely providing “lip service” to reducing carbon emissions. “The emission reduction that India has achieved is unparalleled across the world. Major emitters of carbon are merely paying lip service to the need to reduce emissions. But we will continue doing what we are doing despite the fact that we are a developing country. It is the developing countries that need carbon space. Our energy demand will go up. And even as it does, we will try and ensure that our emission intensity is low,” said Singh.

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