Regulations relaxed for green hydrogen producers in SEZs

The exemption will apply to renewable energy plants commissioned by December 2030, for the production of green hydrogen and its derivatives.

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India has exempted solar and wind energy plants located in special economic zones (SEZs) or export-oriented units (EOUs) from the requirement to purchase modules and turbines from the approved list of models and manufacturers (ALMM). This exemption applies to plants that will be commissioned by December 2030 for producing green hydrogen and its derivatives within the same zones. 

According to a government official, “Green hydrogen producers will get cheaper equipment with duty benefits. The industry had been demanding this for some time.”

MNRE Secretary Bhupinder Singh Bhalla informed that the Ministry of New and Renewable Energy (MNRE) issued this notification with prior approval from the Election Commission of India.

The government reinstated import restrictions on solar modules this financial year, following a temporary relaxation due to insufficient domestic capacity. Previously, solar projects commissioned by March 31, 2024, were exempted from the requirement to procure solar modules from the ALMM (approved list of models and manufacturers) for the 2023-24 period. The ALMM mandate, introduced in 2021, aims to boost domestic manufacturing by requiring solar project developers to purchase approved models. Similarly, a revised list of certified wind turbine models eligible for installation in the country is maintained.

India’s National Green Hydrogen Mission aims to develop at least 5 million tonnes of green hydrogen production capacity annually, alongside adding approximately 125 GW of associated renewable energy capacity.