India Expresses Its Concerns on EU’s Single Bidding Zone Directive at Green Hydrogen Conference – EQ
In Short : At the Green Hydrogen Conference, India raised concerns about the EU’s Single Bidding Zone Directive. Indian representatives highlighted the potential challenges this directive could create for global energy markets, particularly in terms of equitable access and fair competition. India’s focus was on ensuring that emerging economies are not disadvantaged and that global green hydrogen initiatives are inclusive, fostering collaborative progress toward sustainable energy goals.
In Detail : New Delhi : In a pivotal moment at the International Conference on Green Hydrogen, Power Secretary Pankaj Agarwal brought to light India’s ongoing challenges with the European Union’s Renewable Energy Directive II (RED II).
Speaking on Thursday, Agarwal highlighted India’s recent efforts to address concerns over the EU’s 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.
“We’ve raised these issues with the European Commission, and we’re 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 EU’s 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.
Agarwal’s 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.
