In a groundbreaking announcement, Union Minister for Power and New and Renewable Energy, RK Singh, disclosed that the future of round-the-clock renewable energy in India could cost as little as Rs 6 per unit when leveraging green hydrogen for energy storage.
Addressing the Special Ministerial Session of the Fourth International Conference & Exhibition on Clean Energy held in the national capital, Minister Singh highlighted India’s remarkable position as a global leader in making green hydrogen the most cost-effective energy storage alternative.
He pointed out that green hydrogen outperforms traditional methods such as gas and battery energy storage in terms of affordability. The government has initiated a pilot bid for approximately 100 MW, aiming to set a benchmark for the industry. Once green hydrogen becomes a primary source of energy storage, challenges associated with lithium-ion battery availability and other supply chain issues will be mitigated.
Minister Singh emphasized that transitioning to renewables is the path forward for India, as evidenced by recent energy exchange prices averaging Rs 8 per unit. With a projected cost of Rs 6 per unit for round-the-clock renewable energy, renewables are not just the future; they are the present. The Minister conveyed the message that India is well on its way to becoming a clean energy powerhouse, featuring industry leaders capable of global competition.
Furthermore, he informed the industry about the formulation of the legal framework for the carbon market and hinted at the possibility of the industry earning carbon credits for green hydrogen and green ammonia exports. This move is set to enhance the industry’s competitiveness, making Indian businesses more attractive to global investors.
Minister Singh underscored the government’s commitment to transforming the renewable energy landscape in India. Initiatives like the Green Open Access Rules, which allow the setup of capacity anywhere for subsequent transfer, aim to expedite the transition from thermal to renewable sources, ultimately lowering energy costs.
He highlighted the importance of open access as per the Electricity Act 2003, stating that if open access is not granted within the stipulated timeline, it will be deemed approved. Violations will be subject to legal consequences, placing the onus on institutions like State Electricity Authorities.
Minister Singh emphasized that the government has made the power system consumer and industry-friendly. The introduction of consumer rights, along with investigations and prosecutions for violations, aims to uphold consumer interests.
Regarding the growing energy demand driven by India’s rapidly expanding economy, Minister Singh affirmed the commitment to meet these demands through renewable energy sources. Presently, 42% of India’s energy capacity is derived from renewables, underlining the country’s dedication to a green energy future.
Minister Singh highlighted India’s emerging prominence as a renewable energy manufacturing hub. With 88,000 MW of renewable energy capacity under construction and an annual target of adding 50,000 MW, India is set to become a major exporter in this sector.
India’s aim to become the largest exporter of solar cells and modules, coupled with increased grid capacity, solidifies its position as a renewable energy leader.
In conclusion, Minister Singh assured the industry that investing in India’s renewable energy sector is a wise choice. The government’s efforts to de-risk and create a transparent system have attracted significant investment, aligning with the global shift toward green energy.
Source ANI
