Developed nations impede green hydrogen and energy transition for developing countries: Power Min

Union minister for power and renewable energy RK Singh

India aims to be a leader in green hydrogen and energy transition despite the developed nations creating barriers for developing countries to achieve their clean energy goals, Power and New & Renewable Energy Minister R K Singh said at a Confederation of Indian Industry event.

The minister attacked the developed nations for their move to impose carbon tax on imports, but not making any effort for reducing the cost of battery storage that could potentially help provide round the clock power from renewable energy sources.

He said that these countries are also offering very high incentives for green hydrogen manufacturing, thereby creating a barrier for developing nations to attract investments in the sector.

“We shall have one of the largest green hydrogen capacities in the world. The so-called developed countries have started putting up barriers. The cost of production of green hydrogen is $3 dollars and they are giving subsidies of $3. Such a barrier mentality we see even in Europe,” Singh said.

The Union Cabinet approved the National Green Hydrogen Mission with an initial outlay of Rs 19,744 crore. This would include Rs 17,490 crore for the production-linked incentives (PLIs) for producing green hydrogen and manufacturing electrolysers.

While the industry is already making plans to enter green hydrogen and welcomed the incentive, top executives point out that the quantum may not be enough considering how aggressively some other countries are incentivising it.

The US expanded tax credits for renewable electricity by creating new provisions for clean hydrogen. These changes state that renewable electricity and clean hydrogen plants in 2023 can claim a production tax credit of 2.6 cents per kWh and up to $3 per kg of hydrogen.

“You can’t navigate international energy politics until and unless you are blunt,” he said. The minister was also critical of the developed nations pushing developing countries to move to clean energy, even if it is expensive.

“If the battery does not become cheaper I will need to add more thermal and hydropower capacity. I am not shy of saying this and no one can challenge me,” Singh said.

“All those who were lecturing us on how necessary it is to shut down fossil fuels suddenly, change tack after the Ukraine war when there was disruption in supply of gas they started to talk about energy security,” he said.

Singh said India is now pushing hydropower capacity with around 15,000 mw under construction and another 30,000 mw of pipeline to complement the intermittent renewable energy sources. He said that the government is also trying to make battery storage more viable by addressing both supply and demand issues.