Page 53 - Policy Economic Report - October 2024

POLICY AND ECONOMIC REPORT
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Key points of discussion included:

• Puna-1 Hydroelectric Power (HEP) Project: Both sides discussed enhancing their collaboration to
further boost energy production from this project.

• Puna-2 Tariff Finalization
• Future Collaboration: The two leaders explored potential avenues for future cooperation in

energy generation.

Shri Manohar Lal reaffirmed India’s commitment to furthering hydropower development with Bhutan,
noting that “More Power means more happiness.” He assured full support to Bhutan in this critical area
of collaboration, underscoring the strategic and mutually beneficial nature of these projects.

India and Bhutan share a robust partnership in the hydropower sector, with several key projects
contributing significantly to Bhutan’s economy and providing renewable energy to India.

This meeting marks another step forward in deepening bilateral relations and enhancing regional energy
security through sustainable energy cooperation.

NTPC and Indian Army Join Hands for Round-the-Clock Power Supply using Green Hydrogen

NTPC has partnered with the Indian Army to establish a Solar Hydrogen-based Microgrid at Chushul,
Ladakh. This significant step will provide a stable power supply using Green Hydrogen in off-grid Army
locations. Hon'ble Defence Minister Shri Rajnath Singh laid the foundation stone of this unique project
through video conferencing in the presence of Chief of India defence services, CMD, NTPC and other
senior officials from Ministry of Defence, Indian Army and NTPC.

NTPC has designed this innovative Solar Hydrogen-based microgrid system to operate independently,
using hydrogen as an energy storage medium to supply 200kW of power round-the-clock throughout the
year. This system will replace existing diesel gensets at off-grid Army locations, providing a sustainable
power supply despite harsh winter conditions, where temperatures drop to -30°C at an altitude of 4,400
meters. NTPC will maintain the project for 25 years, aiming to support Indian soldiers stationed in these
strategically significant tough terrains and challenging climate.

The Solar-Hydrogen microgrid is set to replace existing diesel generators currently in use at off-grid Army
locations. These systems offer numerous advantages, including the integration of renewable energy
sources, a stable power supply under adverse conditions, reduced carbon emissions, and the promotion
of a cleaner and sustainable energy ecosystem as they are highly scalable and suitable for various
applications. Moreover, these systems combine the reliability of battery storage with the extended energy
storage capability of hydrogen, ensuring a consistent power supply.

Given Ladakh's high solar irradiance and low temperatures, this project will facilitate the production and
utilization of green energy, eliminating reliance on fuel logistics and enhancing self-sufficiency in remote
areas affected by road connectivity disruptions. Once operational, it would usher in a new era of
decarbonisation of the defence sector far off the Himalayas.

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