MNRE exempts export-oriented green hydrogen projects from domestic solar PV restrictions

This exemption, granted in May 2023, applies to green hydrogen projects set up in Special Economic Zones (SEZs) or Export Oriented Units (EOUs) by 2030. The decision allows such projects to use cheaper imported solar modules instead of domestic ones, significantly lowering production costs.

The Ministry of New and Renewable Energy (MNRE) has exempted export-oriented green hydrogen projects from its Approved List of Models and Manufacturers (ALMM), which features domestic solar PV module manufacturers. This exemption, granted in May 2023, applies to green hydrogen projects set up in Special Economic Zones (SEZs) or Export Oriented Units (EOUs) by 2030. The decision allows such projects to use cheaper imported solar modules instead of domestic ones, significantly lowering production costs.

MNRE Secretary Bhupinder S. Bhalla explained that reducing green hydrogen production costs is crucial, especially in export markets where demand is high. By cutting costs to match grey hydrogen levels, it becomes easier to boost green hydrogen demand and make India a competitive player in the global market. Setting up renewable energy infrastructure, like solar plants, is critical to powering electrolysers for green hydrogen production, which is a significant factor in overall project costs.

Bhalla emphasised that this move is essential for expanding India’s green hydrogen exports, aligning with global demand and ensuring cost-efficiency in production. He made these remarks during a press briefing ahead of the International Conference on Green Hydrogen 2024.