Govt likely to announce Green Hydrogen enablers tomorrow, Considering uniform RPOs

The government is likely to announce a policy tomorrow to enable green hydrogen manufacturing firms to set up renewable plants or source the energy from anywhere in the country without transmission charges, power and renewable energy minister R K Singh said on Wednesday.

Singh also said the government is considering a uniform renewable purchase obligation (RPO) mechanism to be followed by all states. Presently all states have set their own RPO targets but most have not even achieved them. Non-compliance will invite penalties as per the Electricity Act, he said.

The to-be-unveiled green hydrogen policy forms the first measure of the Union power ministry's green hydrogen mission.

"The green hydrogen manufacture can set up clean energy capacity by themselves anywhere. We will give them open access and banking for 30 days," Singh said at an event. Open access is the access to transmission network to buy power from the source of choice.

Banking provision would enable a generator to bank his unconsumed power with distribution company and take back when required.

Singh said the waiver of transmission charges to green hydrogen manufacturing companies will be available if they set up facilities before 2025.

He said in the next phase of policy, the government is likely to put mandates on industry on use of green hydrogen and ammonia in a graded manner. The proposal is with the expenditure finance committee and will require Cabinet nod, he said.