India's Green Hydrogen Initiative: Relaxing Regulations for a Sustainable Energy Ecosystem
Key Ideas
- The Approved List of Models and Manufacturers (ALMM) and Revised List of Models and Manufacturers (RLMM) were introduced in India to standardize quality, promote domestic manufacturing, and support renewable energy projects.
- While ALMM and RLMM have maintained project quality, the gap between domestic supply and demand for PV cells and modules has forced reliance on expensive imports.
- To encourage the growth of green hydrogen as an alternate fuel, the Indian Government has provided incentives and concessions, including exemption from ALMM and RLMM for renewable energy plants producing green hydrogen in SEZs or EOUs.
- This initiative signals the Government's commitment to supporting the green hydrogen sector and advancing towards a cleaner and sustainable energy ecosystem.
The Indian Government's initiative to promote green hydrogen as an alternative fuel source is a significant step towards a sustainable energy ecosystem. The Approved List of Models and Manufacturers (ALMM) and Revised List of Models and Manufacturers (RLMM) were established to ensure standardization and quality in solar and wind projects in India. While these lists have helped maintain project quality, the limited domestic supply of PV cells and modules has led to reliance on expensive imports. In response to the increasing demand for renewable energy and the goal of achieving net zero emissions by 2070, the Government is now focusing on green hydrogen.
To support the growth of green hydrogen production, the Ministry of New and Renewable Energy (MNRE) issued two office memorandums exempting renewable energy plants in Special Economic Zones (SEZs) or Export Oriented Units (EOUs) from sourcing modules and turbines exclusively from ALMM and RLMM. This exemption is applicable to plants commissioned by December 31, 2030, and supplying power for green hydrogen production within SEZs or EOUs.
The relaxation of regulations for eligible green hydrogen producers showcases the Government's commitment to fostering a clean and sustainable energy environment. By providing incentives and exemptions, the Government aims to accelerate the adoption of green hydrogen as a popular fuel in the coming years, aligning with global sustainability goals. This initiative not only supports the green hydrogen sector but also signifies a step towards reducing carbon emissions and promoting a greener future.