India Expresses Its Concerns on EU's Single Bidding Zone Directive at Green Hydrogen Conference

ENA Sectors 2024-09-13 16:26:04 New Delhi, Sep 13 (KNN) In a pivotal moment at the International Conference on Green Hydrogen, Power Secretary Pankaj Agarwal brought to light Indias ongoing challenges with the European Unions Renewable Energy Directive II (RED II). Speaking on Thursday, Agarwal highlighted Indias recent efforts to address concerns over the EUs approach to renewable energy, particularly regarding the single bidding zone requirement embedded in RED II. RED II, along with its delegated act (DA), establishes guidelines for the renewable electricity source used in the production of green hydrogen. The directive aims to promote green hydrogen by ensuring that the electricity used for electrolysis is derived from renewable sources produced within the same geographic area as the electrolyser. This is designed to guarantee that green hydrogen is genuinely sustainable and traceable. However, Agarwal underscored that the Indian industry has been grappling with the implications of this policy, especially concerning geographic and temporal correlation requirements. These regulations stipulate that electricity used for hydrogen production must come from the same bidding zone where the electrolyser operates, which has sparked significant concerns in India. Weve raised these issues with the European Commission, and were awaiting further discussions to address our concerns, Agarwal stated. Our industry has repeatedly flagged the challenges posed by the single bidding zone rule, which could impact our ability to efficiently produce and export green hydrogen. The single bidding zone concept, a significant element of the EUs green hydrogen framework, mandates that electricity used in hydrogen production must come from the same zone as the electrolyser, complicating the process for countries like India. Jorgo Chatzimarkakis, CEO of Hydrogen Europe, emphasised that this system creates a straitjacket for hydrogen production in both Europe and India. Chatzimarkakis advocates for reforms to this policy, suggesting that it is detrimental to the growth of the green hydrogen sector in key production countries like India. The EU is projected to import 10 million tonnes of green hydrogen by 2030, creating a lucrative export opportunity for India. Government officials argue that India's synchronous interconnected electricity grid, which operates with minimal congestion compared to European grids, supports the case for reconsidering the single bidding zone requirement. This adjustment could lower production costs for green hydrogen in India, thereby reducing import costs for Europe and fostering a more collaborative international market. Agarwals comments and the broader discussions at the conference reflect a growing dialogue on how international regulations can adapt to support global green hydrogen ambitions while addressing the needs and capabilities of producing countries. (KNN Bureau) 39263 https://knnindia.co.in/news/newsdetails/sectors/india-expresses-its-concerns-on-eus-single-bidding-zone-directive-at-green-hydrogen-conference 2024-09-13 16:26:04 knnindia.co.in India Expresses Its Concerns on EU's Single Bidding Zone Directive at Green Hydrogen Conference