It’s a tough and competitive market out there in the world and India has become the very determinant of its existence. Consumers as well as producers have their specific demands which need to be fed and fulfilled only by certain desired supplies.
For anything unconventional to even sustain in any sector, government needs to ensure its viability for the consumers to utilize it or the only other option would be to provide it some fixed space in market.
And so is done to provide a fillip to meet our ambitious renewable energy targets.
Certain entitles have been obligated to purchase a portion of their energy from renewable sources under the Renewable Purchase Obligations (RPOs).
Renewable purchase obligation (RPO), is a mechanism to facilitate the Government stated obligated entities to ensure purchasing clean energy as a percentage of their total electricity consumption.
It has been provided in Indian statute under Section 86(1) (e) of the Electricity Act 2003 (“EA 2003”) and the National Tariff Policy 2006. RPOs are so categorized as Solar and Non-Solar RPO.
In order to achieve India’s target of 175 GW of renewable energy by 2022, including installed solar energy capacity of 100 GW, Ministry of Power (MoP) has notified the target RPO trajectory up to 2022.
Both sorts of RPOs have their targets specified by respective Obligated Entities of all the States and Union Territories.
Power DisComs, captive power plants and prominent electricity consumers are supposed to meet these RPOs by purchasing green energy in leau of which renewable energy certificates (RECs) are issued.
Minister for Power and New & Renewable Energy R K Singh on Tuesday said purchase of green hydrogen will be made mandatory for certain sectors on lines similar to RPO.
A hydrogen purchase obligation would so ensure that the product sells, as revealed by Mr. Singh in a virtual curtain raiser press conference on ‘India’s role as a Global Champion for the Energy Transition theme at the UN High Level Dialogue on Energy 2021’.
The UN High Level Dialogue on Energy 2021 has allowed India to share lessons and learnings in areas of access and energy transition. It can be of significance to other countries for achieving respective energy goals and thereby uphold climate action.
A key prospect of this UN Dialogue on Energy 2021 is the concept of “Energy Compacts”.
These are voluntary commitments from Member States of the Dialogue and non-state actors like companies, regional/local governments, Non-Governmental Organizations and others.
Those who commit under an “Energy Compact” promise to undertake certain specific actions supporting progress on SDG-7: Affordable and clean energy.
India will aim to fulfil its “energy compacts” based on its NDC of installing 450 GW renewable energy capacity by 2030, primarily sourced from solar, wind and bio-energy; storage systems, green hydrogen and ISA (International Solar Alliance).
Although various studies indicate that India will likely miss the deadline for renewable targets but as per the figures in presentation, “India has already achieved 141 GW of RE (including large hydro projects) while 80 GW is under various stages of implementation and tendering.”
What is green hydrogen?
Green hydrogen gas can be produced by splitting the water into hydrogen and oxygen, using an Electrolyzer which gets operated through renewable energy so that carbon footprint is almost zero.
Produced by cleanest burning, it can decarbonize a range of sectors including iron and steel, chemicals, and transportation. Even Renewable energies which cannot be stored or channeled back into the grid can be used in production of Green hydrogen.
While there are other types of Hydrogen: grey and blue, green hydrogen form is the cleanest type.
Grey hydrogen is produced using fossil fuels like oil and coal, emitting CO2 into the air as they combust.
Blue variety exploits the same way, but carbon capture technologies prevent CO2 being released as the captured carbon is safely stored deep underground or diverted to industrial processes.
How Green Hydrogen can shape India’s Energy future?
In recent times, the green hydrogen energy is vital for India to meet its Nationally Determined Contribution (INDC) under Paris Climate Agreement.
This can ensure regional and national energy security, access and availability in times when energy needs will only rise in the wake of climate change and still expanding population of the country.
It is one of the cleanest energy alternatives as well as storage option, essential to meet intermittencies in unclean future.
It can even be used for urban freight movement within cities or long-distance mobilization inter states, for example railways, large ships, buses or trucks, etc.
But there is a challenge to it: the high or unviable price of green hydrogen
However, in this regard, the MNRE Minister Singh is hopeful and said in the Conference that prices will come down with an increase in volumes (sales and production) as was witnessed in the case of solar and wind energy.
The Solar tariff has now seen a drop to less than Rs 2 per unit under auctions last year. That is indeed enlightening.
With government’s striding efforts towards a green-clean energy establishment in the country, citizens can try to be hopeful for exploiting a proper resource in proper time.