The Union Minister for Power and New & Renewable Energy, Mr. R. K. Singh has said that round-the-clock renewable energy will cost about Rs. 6 per unit if green hydrogen is used for storage.
Speaking at the special ministerial session of the Fourth International Conference & Exhibition on Clean Energy in New Delhi, Mr. Singh said that the cost of green hydrogen would be cheapest in India and that it would become a viable energy storage alternative.
“”Green hydrogen is less expensive than gas and battery-based energy storage technologies. We have developed a pilot bid for approximately 100 MW that we hope will serve as the standard. All supply chain issues, including the availability of lithium-ion batteries, will be resolved once we are able to use green hydrogen for our energy needs. Green hydrogen will be produced and used as storage. If our cost for 24/7 renewable energy comes to Rs. 6 per unit—below the recent average price of power in the energy exchange of Rs. 8—we will be profitable. India has the potential to become a global champion in renewable energy,” he said.
Enablement:
1. Policy:
The minister stated that the government is considering allowing the industry to obtain carbon credits for green hydrogen and green ammonia that are exported from India. He informed that the basic legal framework for the carbon market to provide competitive advantage to the industry.
“We have been leading with policy papers, rules and regulations, opening new doors. We came with Green Open Access Rules, where we have given 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 price of energy,” he said.
2. Manufacturing:
India is emerging as a manufacturing powerhouse of renewable energy, said the minister.
“Around 88,000 MW renewable energy capacity is under construction and our plan is to add 50,000 MW of renewable energy capacity every year. We are already emerging as an exporter. The world will come to rely on us. So, all those who are setting up capacity have made a good bet. At the same time, we need to keep ourselves at the leading edge of technology,” Mr Singh said.
“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% of our capacity is from renewable sources already.”
3. Investments:
Mr Singh noted that this is the era of huge growth for the renewable energy.
Stating that more countries and corporates are investing in the renewable energy sector in the country, he said, “UAE wants to invest here. Getting investment for green transition is not an issue, since we have de-risked the system and made the whole system transparent. Each generator’s power bills are up-to-date. Legacy dues of discoms have been reduced to less than half, and this too will be wiped out in next 2 – 3 years. Every genco is now profitable. AT&C losses have come down and the system is totally viable now. Everything has been made conditional on prudential norms.”
4. National Green Hydrogen Mission:
The minister informed that 5.8 million tons of green hydrogen at various stages of capacity is already being set up, under the National Green Hydrogen Mission.
“We will be the biggest exporter since our green hydrogen and green ammonia cost is going to be the lowest in the world. And we will come up with another bid for grid scale storage. Future Renewable Energy Purchase Obligations are going to be issued under the revised Energy Conservation Act.”
