Boosting Green Hydrogen Production in India through Policy Exemptions and Incentives
Key Ideas
- MNRE exempts export-oriented green hydrogen projects from domestic solar module shortlist, aiming to lower production costs and promote competitiveness against grey hydrogen.
- India aims to produce 5 million metric tons of green hydrogen annually by 2030, with 7.5 MMT projects already announced, focusing on both domestic demand and exports.
- MNRE's Strategic Interventions for Green Hydrogen Transition (SIGHT) programme allocates Rs 17,490 crore to bid out electrolyser manufacturing and green hydrogen capacities, with additional measures to incentivize investments.
- Over 100 recommendations for green hydrogen standards have been made, with 73 already notified, including exemptions from prior environmental clearance and transmission charges for 25 years post-commissioning.
The Ministry of New and Renewable Energy (MNRE) in India has taken significant steps to boost green hydrogen production by exempting export-oriented projects from its Approved List of Models and Manufacturers for domestic solar modules. This exemption, granted in May 2024, allows projects in special economic zones or export-oriented units to utilize imported modules, significantly reducing production costs and promoting cost competitiveness against grey hydrogen. MNRE Secretary Bhupinder S Bhalla emphasized the importance of lowering green hydrogen costs to expand demand and facilitate exports. India aims to produce 5 million metric tons of green hydrogen annually by 2030, with 7.5 MMT projects already announced, catering to both domestic and international markets. The country's Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, backed by a Rs 17,490 crore allocation, focuses on bidding out electrolyser manufacturing and green hydrogen capacities, alongside other measures to incentivize investments. Additionally, MNRE has made over 100 recommendations for green hydrogen standards, with 73 already notified, including exemptions from prior environmental clearances and transmission charges for 25 years post-commissioning. These initiatives reflect a positive outlook towards green hydrogen development in India, aiming to drive sustainability and competitiveness in the energy sector.