Renewable energy will cost Rs 6 per unit if green hydrogen is used for storage

Round-the-clock renewable energy will cost just about Rs 6 per unit if green hydrogen is used for storage, Power and New & Renewable Energy Minister R. K. Singh said yesterday.

Speaking at the special ministerial session of the Fourth International Conference & Exhibition on Clean Energy in New Delhi, he said that the cost of green hydrogen would be cheapest in India. Green hydrogen would become a viable energy storage alternative, he added.

“Green hydrogen is cheaper than gas and battery energy storage systems. We have come up with a pilot bid for about 100 MW which we hope will establish the benchmark. Once we are able to use green hydrogen for our energy requirements, all supply chain issues such as availability of lithium-ion batteries will be resolved,” the Minister said.

“We will make green hydrogen and use it as storage,” he said, adding that the average price of power in the energy exchange is Rs 8 per unit. If our cost for round-the-clock renewable energy comes to Rs 6 per unit, “we are in business. That is what the future is: renewables. The future is here, not far away.”

The Minister informed the industry that the basic legal framework for carbon market has been formulated. Also, the government is thinking of permitting the industry gain carbon credits for green hydrogen and green ammonia which is exported from India, he said. With this, the industry will have yet another advantage, which will make Indian industry totally competitive, he added.

The government has opened the paths for growth of industry, the Minister said. It has been leading with policy papers, rules and regulations, opening new doors. It came with Green Open Access Rules, which gave right to anybody to set up capacity anywhere and transfer it to wherever they want.

“I have written to all industry captains to switch over from thermal to renewables, this shift will also bring down price of energy,” Singh said.