The Ministry of New and Renewable Energy (MNRE) has announced a relaxation in regulations to promote green hydrogen production in India. This move aims to accelerate the country’s clean energy goals. This announcement was made in respect of solar and wind energy projects through Office Memorandums dated May 27, 2024.
Exemption from ALMM for Renewable Energy Plants
Renewable energy plants located within Special Economic Zones (SEZs) or Export Oriented Units (EOUs) will be exempt from the Approved List of Models and Manufacturers (ALMM) requirements for solar photovoltaic (PV) modules. This exemption applies specifically to plants that exclusively supply power for the production of green hydrogen or its derivatives within SEZs or EOUs.
Exemption from RLMM for Renewable Energy Plants
Additionally, MNRE has also granted a similar exemption to renewable energy plants engaged in production of wind power through wind turbine models. If such renewable energy plants are located within Special Economic Zones (SEZs) or Export Oriented Units (EOUs) they will be exempt from the Revised List of Models and Manufacturers (RLMM) requirements for wind turbine models. These plants are exempt provided they exclusively supply power for the production of green hydrogen or its derivatives within SEZs or EOUs.
Benefits of the Exemption
The ALMM / RLMM typically mandate the use of solar PV modules or wind turbine models, from a pre-approved list. This exemption allows green hydrogen plants in SEZs and EOUs more flexibility in sourcing solar panels and wind turbines. This could potentially lead to:
- Reduced Costs: Producers may be able to find more cost-effective options outside the specified lists.
- Faster Deployment: The exemption could expedite project timelines.
Validity of the Exemption
These exemptions apply to all qualifying renewable energy plants commissioned by December 31, 2030. They aim to provide an incentive to India’s green hydrogen ambitions. By simplifying the procurement process, the policy aims to encourage the development of green hydrogen production facilities within SEZs and EOUs. This, in turn, will contribute to India’s clean energy transition and its commitment to reducing carbon emissions.
