Green Hydrogen Policy- A Big Step Towards India's Green Energy Transition

Green Hydrogen Policy- A Big Step Towards India's Green Energy Transition

28 Feb 2022

Green Energy Company in India

Green hydrogen is produced by breaking down water into hydrogen and oxygen. It is done using an electrolyzer that’s powered by electricity from green energy sources such as wind and solar. There is no GHG emission in the production of hydrogen in this way The main factor behind the low use of green hydrogen is the high cost of production. But not anymore!

India’s first green hydrogen policy allows for a single-window clearance system, the allotment of land in renewable energy parks, priority access to the inter-state transmission network, open access procurement within 15 days, waiver of inter-state transmission charges, a 30-day energy banking policy and other measures. This clearly makes way for easy production and consumption of green hydrogen.

Did you know that 75% of the electricity produced in India right now comes from thermal power, by burning coal? A disaster for the environment! Isn’t it? On the other hand, green hydrogen can be used in industry and can also be used with fuel cells to power anything that uses electricity including electric vehicles and electronic devices. Using green hydrogen as energy in the cement and steel industry in place of coal can reap great benefits for the environment. Green hydrogen is the one clean energy source that could really help bring the world to net-zero emissions.

This is a huge step in fight against climate change. Reducing emissions intensity and increasing the renewable mix in electricity generation, are a big part of India’s official climate action plan to achieve net-zero emission status by 2070. India also intends to fulfil 50 per cent of its energy requirement through renewable energy by 2030. Businesses must take advantage of this opportunity and switch to renewable energy sources.

In spite of all the knowledge and growing attention on clean energy, fossil fuels still account for 80 percent of global energy consumption and 75 percent of greenhouse gas emissions. For example, emissions from steel and cement are high and difficult to reduce because fossil fuel is required for production processes. Carbon from coal is used as a reductant in manufacturing of iron while cement has high embedded CO2. It makes it difficult to use renewables for such requirements. It’s time to change the manufacturing process and use alternatives such as green hydrogen in place of carbon which can be produced by using renewable source of energy like wind or solar.

In order to accelerate deployment of renewable energy, the government is leaving no stone unturned to provide the right incentives. By doing so, the government will not just be able to meet its objectives of energy security, energy self-reliance, reducing imports of expensive fossil fuels but also accelerate its journey towards net zero.

Businesses can play a proactive role here and reap the benefits of government incentives. There is a diverse range of renewables, including Captive, Group Captive Power- partnering with IPPs, Bilateral short-term power supply, Power trading via power traders, etc. that C&I (Commercial and Industrial) consumers can utilize to minimize their carbon emissions. It is no longer an option; it’s an imperative to achieve a better economy and a better future in a healthy planet.

Altilium is the integrated power trading and advisory setup that helps its clients to transition to greener and clean operations. We help clients in solving complex energy procurement and management challenges related to cost volatility, alternate sources of energy, strategic shifting of dependence from traditional market approach. With an overall team experience of 45 years in the Indian power sector, our array of services includes bespoke Electricity Regulatory Advisory, Energy Portfolio Management, Renewable Energy offtake & trade, open access services, Renewable Energy Projects management, to name a few. Being one of the leading CERC (Central Electricity Regulatory Commission) approved power trading companies in India, Altilium is managing a trade volume of over 15 MUs (million units) of Renewable Energy every month for its clients PAN India, as on date.

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