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Budget 2022: Incentives will be given to vehicles running on battery and hydrogen fuel cells, the emphasis will be on energy storage

India’s plan to use green hydrogen in the transport sector was first announced by Finance Minister Nirmala Sitharaman in her budget speech last year. Later, Prime Minister Narendra Modi announced the National Hydrogen Energy Mission in his Independence Day speech on 15 August 2021. Green hydrogen is produced through electrolysis using renewable energy.

Budget 2022: Incentives will be given to vehicles running on battery and hydrogen fuel cells, the emphasis will be on energy storage

Emphasis will be on renewable energy sources

According to the information, the government will soon announce production-linked incentives for making electrolysers in India so that green hydrogen can be produced locally. In addition, incentives on export of green hydrogen are also being discussed.

Budget 2022: Incentives will be given to vehicles running on battery and hydrogen fuel cells, the emphasis will be on energy storage

At an event organized by the Confederation of Indian Industry (CII) on Thursday, Power Minister RK Singh said that the Ministry of Renewable Energy along with the Ministry of Power has prepared a National Hydrogen Policy which will be released by the first week of February. Under the hydrogen policy, a policy can be formulated to provide electricity to the undertakings producing hydrogen free of cost.

Let us inform that Prime Minister Narendra Modi had announced at the Glasgow Climate Summit held in November 2021 that India will reduce carbon emissions by 1 billion tonnes by 2030 and meet 50 percent of its energy needs from renewable energy sources.

Budget 2022: Incentives will be given to vehicles running on battery and hydrogen fuel cells, the emphasis will be on energy storage

investment on energy storage

To attract companies from around the world to invest in hydrogen energy, the policy will have dollar-denominated bids and offer land in renewable energy parks to set up production units. Land will be allotted near ports to build bunkers for storing green hydrogen or ammonia.

Budget 2022: Incentives will be given to vehicles running on battery and hydrogen fuel cells, the emphasis will be on energy storage

The new policy to promote electricity generation from renewable energy may also encourage construction of pumped storage hydropower across the country. It aims to promote the manufacturing of large-scale storage systems across the country. Energy storage systems are considered essential for the smooth transition from coal based power generation to renewable energy sources.

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