Friday, May 13, 2022

India unveils green hydrogen policy: Open access, cheaper RE power, free transmission

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  • The objective also is for our country to emerge as an export Hub for Green Hydrogen and Green Ammonia, said the Power Ministry
  • Waiver of inter-state transmission charges for a period of 25 years will be allowed to the manufacturers for the projects commissioned before June 30, 2025

New Delhi: Notifying the green hydrogen policy on Thursday, the Ministry of Power said that the policy aims to make India a global hub for production and export of green hydrogen. The government has announced attractive sops like open access, cheaper green power and free transmission, among others, for companies interested in setting up facilities for green hydrogen production. “The implementation of this Policy will provide clean fuel to the common people of the country. This will reduce dependence on fossil fuel and also reduce crude oil imports. The objective also is for our country to emerge as an export Hub for Green Hydrogen and Green Ammonia,” said the Ministry of Power in a statement.

“The policy promotes Renewable Energy (RE) generation as RE will be the basic ingredient in making green hydrogen.  This in turn will help in meeting the international commitments for clean energy,” it added.

Hydrogen & Ammonia fuels of the future

Hydrogen and Ammonia are envisaged to be the future fuels to replace fossil fuels, said the government. Production of these fuels by using power from renewable energy, termed as green hydrogen and green ammonia, is one of the major requirements towards environmentally sustainable energy security of the nation. “Government of India is taking various measures to facilitate the transition from fossil fuel / fossil fuel based feed stocks to green hydrogen / green ammonia. The notification of this policy is one of the major steps in this endeavour,” it added.

Green Hydrogen manufacturers to get open access within 15 days

Green hydrogen, Ammonia manufacturers may purchase renewable power from the power exchange or set up renewable energy capacity themselves or through any other, developer, anywhere. Open access will be granted within 15 days of the receipt of application, said the government. The Green Hydrogen / Ammonia manufacturer can bank their unconsumed renewable power, up to 30 days, with distribution company and take it back when required.

Distribution licensees can also procure and supply renewable energy to the manufacturers of green hydrogen, green ammonia in their states at concessional prices which will only include the cost of procurement, wheeling charges and a small margin as determined by the State Commission.

No inter-state transmission charges for 25 years

Waiver of inter-state transmission charges for a period of 25 years will be allowed to the manufacturers of green hydrogen and green ammonia for the projects commissioned before June 30, 2025, said the government. The manufacturers, along with the RE plant, will be given connectivity to the grid on priority basis to avoid any procedural delays.

“The benefit of Renewable Purchase Obligation (RPO) will be granted incentive to the hydrogen/Ammonia manufacturer and the Distribution licensee for consumption of renewable power. Connectivity, at the generation end and the Green Hydrogen / Green Ammonia manufacturing end, to the ISTS for Renewable Energy capacity set up for the purpose of manufacturing Green Hydrogen / Green Ammonia shall be granted on priority,” the policy document said.

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 the Ministry of New and Renewable Energy (MNRE), said the Power Ministry. “Manufacturers of Green Hydrogen / Green Ammonia shall be allowed to set up bunkers near Ports for storage of Green Ammonia for export / use by shipping. The land for the storage for this purpose shall be provided by the respective Port Authorities at applicable charges,” it added.

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