The government plans to invite bids for green hydrogen projects in the next two to three months, Minister of State (Independent Charge) for Power and New and Renewable Energy RK Singh said on Thursday.
"We will in 2-3 months come up with bids for green hydrogen plants. We will have green hydrogen purchase obligation on the lines of renewable purchase obligation," Singh said. These units will produce hydrogen gas by using renewable energy, instead of fossil fuels, for electrolysis. The use of non-renewable energy for hydrogen production is being increasingly shunned because of climate change concerns.
India aims to achieve 40 percent of its power generation capacity from non-fossil fuel sources by 2030. It has already reached 38.5 percent of the target, according to the power minister. On the agricultural front, Singh said feeders will be set up as part of the central energy security scheme for farmers (PM-KUSUM), with around 150 bln rupees earmarked for projects.
Power distribution companies, which were already struggling due to a slowdown in the economy, have been severely affected by the COVID-19 pandemic.