Context: Budget 2021 has proposed the launch of Hydrogen Energy Mission in this fiscal year. In this episode we will discuss and analyse this and several other proposals in the budget towards enhanced use of green and clean energy.
Key Points

• The Union government has recently been vocal about the achieving its renewable energy targets of 175 gigawatt by 2022 and 450 GW by 2030. The Budget, however, did not say anything about the government’s plans and the financial assistance available for the same.
• “Budget 2021 should have been leveraged to accelerate India’s energy transition and provide an ambitious action plan to meet 450 GW of renewable energy by 2030. Having a long- term vision could have helped the government lay the ground for innovative interventions that can scale up renewable energy projects.
• “In the current budget, the government has increased customs duties on solar inverters and solar lanterns which will help domestic manufacturers in the short run. However, India needs a clear and robust policy on domestic solar manufacturing

Budget 2021 Power push

• The government is proposing to create a framework to give consumers alternatives to choose from more than one power distribution company.
• Rs 3.05 lakh crore outlay for power sector
• Rs 3.05 lakh crore outlay. 100 more cities to be added in the next 3 years to the gas distribution network.

Ujjawala push

• The government has announced the extension of benefits of the Free cooking gas LPG scheme Ujjwala scheme to an additional 1 crore people .

FM gives boost to renewable energy sector

• Rs 1,000 crore to solar energy corporation and Rs 1,500 to renewable energy development agency.

Gas pipeline project to be taken up in J&K

• Finance Minister Nirmala Sitharaman announces a new gas pipeline project for Jammu and Kashmir.

Hydrogen energy mission

• Hydrogen energy mission for generating hydrogen out of green-powered sources

Projects in PPP mode for ports

• Seven projects worth Rs 2,000 crore in PPP mode for ports in the country.

Gas Transportation

• The government has announced an independent gas transport system operator for booking and coordination to ensure for unbiased allocation of natural gas transportation capacity.

About Green Hydrogen Energy Mission

• The Union Budget proposed to launch a Hydrogen Energy Mission in 2021-22 for generating hydrogen from green power sources.
• Hydrogen can be generated from many sources. But India stresses on the hydrogen sources from renewable sources.
• This mission would decarbonise heavy industries, and also holds the key to clean electric mobility that doesn’t depend on rare minerals.
• Hydrogen can act as an energy storage option, which would be essential to meet intermittencies (of renewable energy) in the future.
• Green hydrogen energy is vital for India to meet its Nationally Determined Contributions and ensure regional and national energy security, access and availability.

Road Ahead

• “The key points related to the RE sector are the capital infusion into Solar Energy Corporation of India (SECI) and Indian Renewable Energy Development Agency Limited (IREDA); 
• distribution companies reforms linked to results over five years; and 
• national hydrogen mission. 

The latter two are clearly mid- to long-term in nature and will only help us achieve our 2030 nationally determined contributions  commitments and any other aggressive net zero goal the country might adopt.”