MNRE Exempts Solar and Wind Energy for Green Hydrogen Production in India
Key Ideas
  • The Ministry of New and Renewable Energy in India has exempted solar and wind energy plants from certain requirements to promote green hydrogen production.
  • The exemption is aimed at reducing costs and meeting the target of producing 5 million metric tonnes of green hydrogen annually by 2030.
  • Major Indian corporates like Reliance and Adani, along with oil and gas companies, are heavily investing in green hydrogen production to achieve the ambitious cost target of $1 by 2030.
  • The move is seen as a significant step to encourage the growth of green hydrogen industry, with expectations of further support measures being introduced in the future.
The Ministry of New and Renewable Energy in India recently issued an office memorandum exempting solar plants from ALMM requirements and wind energy from RLMM requirements if they are dedicated to green hydrogen production. This exemption is applicable to plants located in Special Economic Zones or set up as Export-oriented Units for Green Hydrogen and its derivatives. The decision to exempt these plants is aimed at addressing the cost challenges associated with green hydrogen production and achieving the target of 5 million metric tonnes of production annually by 2030. The move is expected to have a significant impact, as it could potentially require over 25 GW of solar and wind capacities to meet the production target. Several major Indian corporations, including the Reliance group, Adani, and oil and gas giants, have pledged substantial investments in the green hydrogen sector with the goal of reducing costs to $1 by 2030. The industry views this exemption as a positive step towards fostering the growth of green hydrogen production in India. It is anticipated that more supportive measures will be introduced in the future as momentum in the sector builds up. The ultimate objective of these initiatives is to make green hydrogen a viable and competitive energy option in the country's energy mix.
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