In a significant move towards ensuring reliable and sustainable energy access, India’s Ministry of New and Renewable Energy (MNRE) is accelerating the integration of green hydrogen into the national energy mix. To explore the potential of green hydrogen, particularly for achieving round-the-clock electricity supply, a recent meeting led by Union Minister R K Singh, brought together key stakeholders from power, energy corporations, and research institutions.
Discussions focused on leveraging green hydrogen’s unique storage capabilities to meet peak demand periods and maintain consistent power supply. Recognizing the need for market incentives, the meeting explored potential policy mechanisms including a Contract for Difference (CfD) model. This model bridges the gap between current market prices and a pre-determined “strike price” for green hydrogen, making it more attractive for producers and users. Minister Singh emphasized the development of scheme guidelines based on economic feasibility, technological advancements, and market dynamics to pave the way for seamless integration.
This initiative resonates with Prime Minister Narendra Modi’s vision outlined at the India Energy Week 2024 inauguration. He highlighted the vital role of the National Green Hydrogen Mission in establishing India as a global hub for green hydrogen production and export. The recent budget allocated Rs 11 trillion towards infrastructure development, with a specific focus on the energy sector.
