Green Hydrogen Mission gets Rs.19,700cr to facilitate transition of the economy to low carbon intensity
Minister of New Renewable Energy and Power R.K. Singh has updated Lok Sabha on RE schemes announced in Budget 2023, including allocation of Rs.35,000 crore for priority capital investments towards energy transition and net zero objectives, and energy security.
He listed schemes and projects such as Viability Gap Funding for development of Battery Energy Storage Systems with capacity of 4,000 MWh.
Customs duty exemption has been extended in the budget to 31 Mar 2024 for import of capital goods and machinery required for manufacture of lithium-ion cells for batteries used in electric vehicles, said the Minister on 16 Mar 2023.
Major schemes and the steps announced in the Budget are for promoting clean energy and sustainable living.
These are:
The outlay of Rs.19,700 crore for the Green Hydrogen Mission to facilitate transition of the economy to low carbon intensity, reduce dependence on fossil fuel imports and make the country assume technology as well as market leadership in this sunrise sector. The target is to reach an annual production of 5 MMT by 2030.
Investment of Rs.20,700 crore including central support of Rs.8,300 crore for strengthening of interstate transmission system for evacuation and Grid Integration of 13 GW renewable energy from Ladakh.
500 new ‘waste to wealth’ plants to be established under the new GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme with a total investment of Rs.10,000 crore.
One crore farmers to be facilitated to adopt natural farming over the next 3 years. For this, 10,000 Bhartiya Prakritik Kheti Bio-Input Resource Centres to be set-up, creating a national-level distributed micro-fertilizer and pesticide manufacturing network.
‘Mangrove Initiative for Shoreline Habitats & Tangible Incomes’, MISHTI, for mangrove plantation along the coastline and on salt pan lands, wherever feasible, through convergence between MGNREGS, CAMPA Fund and other sources.
Amrit Dharohar, scheme to encourage optimal use of wetlands, and enhance bio-diversity, carbon stock, eco-tourism opportunities and income generation for local communities.
Coastal shipping to be promoted as the energy efficient and lower cost mode of transport, both for passengers and freight, through PPP mode with viability gap funding.
Allocation of adequate funds to scrap old vehicles of the Central Government and support to States in replacing old vehicles and ambulances.
Major steps taken by the Government to accelerate the Indian economy’s transition to one powered by green energy include:
• Permitting Foreign Direct Investment (FDI) up to 100% under the automatic route for renewable energy projects
• Waiver of Inter State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30 June 2025
Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2030
• Setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to RE developers on a plug and play basis.
• Launch of Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), Solar Rooftop Phase II, 12000 MW CPSU Scheme Phase II, etc.
• Laying of new transmission lines and creating new sub-station capacity under the Green Energy Corridor Scheme for evacuation of renewable power.
Transmission Plan for Integration of 500 GW Renewable Energy capacity by 2030.
Notification of standards for deployment of solar photovoltaic system/devices.
Setting up of Project Development Cell for attracting and facilitating investments.
• Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power from Grid Connected Solar PV and Wind Projects.
• Government has issued orders that power shall be dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees to RE generators.
• Notification of Promoting Renewable Energy through Green Energy Open Access Rules 2022.
• Notification of “The electricity (Late Payment Surcharge and related matters) Rules 2022 (LPS rules).
• Launch of Green Term Ahead Market to facilitate sale of renewable energy power through exchanges. fiinews.com
