India's Green Hydrogen Revolution: Legal Framework and Incentives
Key Ideas
- The Indian Government is driving the establishment of a global green hydrogen hub through the National Green Hydrogen Mission (NGHM), targeting 5 million metric tonnes of green hydrogen production annually by 2030.
- Legal frameworks like the Energy Conservation Act, Electricity Act, and Environmental Protection Act provide the statutory basis for promoting green hydrogen adoption and mandating its use in specific industrial processes.
- Financial incentives such as the SIGHT Programme, Customs and Tax exemptions, Viability Gap Funding, and Carbon Credits aim to catalyze green hydrogen projects in sectors like steel, shipping, and transport.
- Regulatory oversight by authorities like MNRE, CERC, and SERCs ensures compliance with green hydrogen guidelines, power purchase agreements, transmission tariffs, and renewable purchase obligations under statutory provisions.
The Government of India (GoI) has launched a strategic initiative to position India as a global leader in green hydrogen production and utilization. At the core of this endeavor is the National Green Hydrogen Mission (NGHM), which sets ambitious targets for green hydrogen production by 2030. The legal and policy framework supporting this mission includes statutes like the Energy Conservation Act, Electricity Act, and Environmental Protection Act, which mandate the use of green hydrogen in certain industrial processes and provide guidelines for emissions and handling of hazardous substances.
The financial and fiscal incentives introduced by the government, such as the SIGHT Programme, Customs and Tax exemptions, Viability Gap Funding, and Carbon Credits, aim to incentivize the adoption of green hydrogen projects, especially in key sectors like steel, shipping, and transport. These incentives are backed by statutory provisions and budgetary allocations to ensure their effectiveness.
Regulatory oversight is provided by authorities like the Ministry of New and Renewable Energy (MNRE), Central Electricity Regulatory Commission (CERC), and State Electricity Regulatory Commissions (SERCs), which play crucial roles in enforcing compliance with green hydrogen guidelines, power purchase agreements, transmission tariffs, and renewable purchase obligations. The legal framework and incentives put in place by the Indian government signal a positive outlook towards green hydrogen development and support the country's vision of becoming a prominent player in the global green energy landscape.
Topics
Policy
Green Hydrogen
Renewable Energy
Sustainability
Investment
Regulations
Energy
Economic Growth
Fiscal Incentives
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