17/02/2022

India's Green Hydrogen Policy - 1

 

Mission

  • Aim to aid the government in meeting its climate targets and making India a green hydrogen hub.

Summary of Green Hydrogen Policy – 1

  • Government of India have had under consideration a number of policy measures in order to facilitate the transition from fossil fuel / fossil fuel-based feed stocks to green hydrogen / green ammonia both as energy carriers and as chemical stock for different stocks.
  • Green hydrogen / green ammonia shall be defined as hydrogen / ammonia produced by way of electrolysis of water using renewable energy including renewable energy which has been banked and the hydrogen / ammonia produced from biomass.
  • The waiver of inter state transmission charges shall be granted for period of 25 years to the producer of green hydrogen and green ammonia from the projects commissioned before 30th June 2025.
  • Green hydrogen / green ammonia can be manufactured by a developer by using renewable energy from co-located renewable energy plant or sourced from remotely located renewable energy plants, whether set up by the same developer or third party or procured renewable energy from the power exchange. Green hydrogen / green ammonia plant will be granted or procured renewable energy within 15 days of receipt of application complete in all aspects. The open access charges shall be accordance with rules as laid down.
  • Banking shall be permitted for a period of 30 days for renewable energy used for making green hydrogen / green ammonia.
  • The charges for banking shall be fixed by the state commission which shall not be more than license during the previous year and the average market clearing price ( MCP ) in the day ahead market ( DAM ) during the month in which the renewable energy has been banked.
  • 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 under the electricity ( transmission system planning, development and recovery of inter state transmission charges ) rules 2021.
  • Land in renewable energy parks can be allotted for the manufacture of green hydrogen / green ammonia.
  • The government of India proposes to set up manufacturing zones. green hydrogen / green ammonia production plant can be set up in any of the manufacturing zones.
  • Manufacturing of green hydrogen / green ammonia shall be allowed to set up bunkers near parts for storage of green ammonia for export / use by shipping. The land for the storage purpose shall be provided by the respective port authorities at applicable charges.
  • Renewable energy consumed for the production of green hydrogen / green ammonia shall count towards RPO compliance of the consuming entity. The renewable energy consumed beyond obligation of the producer shall count towards RPO compliance of the DISCOM in whose area the project is located.
  • Distribution licenses may also procure and supply renewable energy to the manufacturers of green hydrogen / green ammonia in their states. In such cases, the distribution licensee shall only charge the cost of procurement as well as the wheeling charges and a small margin as determined by the state commission.
  • Ministry of new and renewable ( MNRE ) will establish a single portal for all statutory clearances and permissions required for manufacture, transportation, storage and distribution of green hydrogen / green ammonia. The concerned agencies / authorities will be requested to provide the clearances and permission in a time bound manner, preferable within a period of 30 days from the date of application.
  • In order to achieve competitive prices, MNRE may aggregate demand from different sectors and have consolidated bids conducted for procurement of green hydrogen / green ammonia through any of the designed implementing agencies.

Download : India’s Green Hydrogen Policy – 1 ( 17.2.2022 )


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