India's Green Hydrogen Push: Government Eases Regulations for Renewable Energy Plants
Key Ideas
- Introduction of ALMM and RLMM lists aimed to standardize quality and promote domestic manufacturing in India's solar and wind sectors.
- Challenges arise due to low domestic supply of PV cells, leading to reliance on expensive imported components.
- Government's focus on green hydrogen as an alternative fuel is supported by incentives and concessions to encourage manufacturing.
- Recent exemptions for renewable energy plants in SEZs and EOUs from sourcing restrictions signal strong government commitment to green hydrogen sector growth.
The Indian government has taken significant steps to boost the green hydrogen energy sector by issuing two office memorandums on May 27, 2024. These memorandums exempt renewable energy plants located in SEZs or EOUs from mandatory sourcing of modules and turbines from the ALMM and RLMM lists. This exemption, valid until December 31, 2030, applies to plants supplying power exclusively for green hydrogen production. The move aims to address the challenges faced by developers due to low domestic supply of PV cells, promoting the use of green hydrogen as an alternate fuel. The government's focus on achieving a net-zero target by 2070 aligns with the push for green hydrogen, with various incentives and concessions being provided to manufacturers in this sector. The relaxation of regulations for eligible green hydrogen producers within SEZs and EOUs highlights the government's commitment to fostering a clean and sustainable energy ecosystem in India.