On August 4, Power Minister RK Singh disclosed that India is considering the option of transferring carbon credits to nations that purchase green hydrogen from it. Talks are underway with various countries, including Japan, for potential agreements on this matter.
While Singh refrained from specifying the nations that have imposed trade barriers on renewable energy, he highlighted India’s commitment to prioritizing the shift towards green energy. This commitment is evident in the Union Budget, which allocated Rs 35,000 crore for essential capital investment to expedite the country’s energy transition, net zero objectives, and bolster energy security under the Ministry of Petroleum and Natural Gas.
In June, a committee was established to oversee India’s carbon market, ensuring the equitable issuance and trade of carbon credits, which signify reductions in greenhouse gas emissions. This development introduced the Green Credit Programme, a domestic voluntary market mechanism unveiled in the 2023-24 Union Budget. The program incentivizes individuals and corporations to adopt environmentally friendly practices and operates under the framework of the Environment Protection Act.
Singh emphasized that the rules governing carbon credits could permit global credit sales in specific sectors based on technology.
Green Hydrogen
Green Hydrogen, a fuel derived from splitting water into hydrogen and oxygen via electrolysis, powered by renewable energy, was a focal point in Singh’s statements. India’s Green Hydrogen Mission is driving the development of new processes to reduce the carbon footprint of exported Indian products. The mission aims to produce electrolyzers to align with the country’s renewable energy plans and decrease the cost of renewable energy.
Singh highlighted the introduction of taxes on domestic industries to discourage carbon content and expressed the need for similar duties on imports.
India’s commitment to green hydrogen was evidenced by an initial allocation of Rs 19,744 crore for the National Hydrogen Mission in January, along with incentives exceeding Rs 17,000 crore for domestic electrolyzer and green hydrogen production. Additional funds were allocated for green hydrogen hub development.
Singh also provided updates on progress in different renewable energy sectors, such as offshore wind energy bids, and solar and thermal energy projects.
The minister revealed plans for upcoming offshore wind energy bids, particularly along the coasts of Gujarat and Tamil Nadu, which possess significant offshore wind energy potential.
The Power Minister explained that the establishment of solar power capacity occurs after the letter of award (LOA) to a company and the finalization of power purchase agreements (PPA). He noted that individuals seek to secure a PPA with government companies when they intend to establish solar capacity. He aspired to see individuals install solar capacity for state-level sales in the future. Singh also assured that electricity shortages wouldn’t be tolerated among distribution companies.
Regarding thermal power plants, Singh noted that insufficient biomass reaching these plants stems from underdeveloped supply chains for pellets. He underscored the necessity of setting up pelletization machines to optimize biomass utilization.
Source: CNBC TV