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Green Hydrogen Purchase to Count As RPO: Power Ministry Draft Rules

Green Hydrogen Purchase to Count As RPO: Power Ministry Draft Rules

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It proposes to make consumers with 100 kW load, covering MSMEs and commercial complexes, eligible to take power through green energy open access. Currently, most state commissions allow open access to large consumers buying one megawatt and above.

The government on Monday proposed uniform renewable purchase obligation (RPO) on distribution licensees, open access consumers and captive power consumers while allowing them to meet the commitment by purchasing green hydrogen.

It proposes to make consumers with 100 kW load, covering MSMEs and commercial complexes, eligible to take power through green energy open access. Currently, most state commissions allow open access to large consumers buying one megawatt and above.

The Power Ministry’s draft rules on promoting renewable energy through Green Energy Open Access provide that any entity may purchase renewable energy through its own generation, open market, placing requisition with discoms, green hydrogen and renewable energy certificates.

“The quantum of green hydrogen would be computed by considering the equivalence to the green hydrogen produced from one MWh of electricity from the renewable sources or its multiple,” the rules said. Green hydrogen is the hydrogen produced using electricity from renewable sources.

This comes a day after Prime Minister Narendra Modi announced the launch of the National Hydrogen Mission (NHM) in his Independence Day speech. He said that the government aims to make India a global hub for the production and export of green hydrogen.

The ministry also proposes to remove restrictions on consumers who want to generate their own green energy. Presently, customers are prohibited to produce through captive generation more than the connected load.

The interested entities can purchase green energy by placing a requisition with their distribution licensee, which shall procure such quantity of green energy and supply it.

“The tariff for the green energy shall be determined by the appropriate commission, which may comprise of the average pooled power purchase cost of the renewable energy, cross-subsidy charges (if any) and service charges covering all prudent cost of the distribution licensee for providing the green energy,” the draft said.

The green tariff will include wheeling charges and cross subsidy charges but exempt additional surcharge, levied for the long-term capacity tied up by discom likely to remain underutilised due to open access.

Any requisition for green energy from a distribution licensee shall be for a minimum period of one year, the draft said. The quantum of green energy shall be pre-specified for at least one year.

The draft provides that appropriate electricity commissions shall put in place regulations to provide green energy open access to willing consumers. All applications for open access of green energy shall be granted within a maximum of 15 days.

The Forum of Regulators shall prepare a common application format for the Green energy open access which shall be adopted by the commissions, it said.

Source: ET Bureau

Anand Gupta Editor - EQ Int'l Media Network