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Exemption for Renewable Energy plants located inside special economic zone or export-oriented units supplying power exclusively for production of Green Hydrogen

The Ministry of New and Renewable Energy (“MNRE”), vide 2 (two) office memorandums each dated May 27, 2024, has issued exemptions for renewable energy (“RE”) plants located inside a special economic zone (“SEZ”) or export oriented unit (“EOU”) and supplying power exclusively for production plants of green hydrogen (or its derivatives), which are located inside a SEZ or set up as an EOU (either the same or different SEZ/EOU) from purview of the following:
- the Approved List of Models and Manufacturers (“ALMM”) for Solar PV Modules, issued by MNRE under the Approved Models and Manufacturers of Solar Photovoltaic Modules (Requirements for Compulsory Registration) Order, 2019, including all clarifications/amendments and guidelines thereunder; and
- the Revised List of Models and Manufacturers (“RLMM”) for Wind Turbine Models, issued by MNRE under the Guidelines for Development of Onshore Wind Power Projects issued vide F.No.66/183/2016-WE dated October 22, 2016, including all clarifications/amendments and procedures thereunder.
The ALMM mandate requires solar project developers to purchase modules from an approved list, serving as a non-tariff measure to promote domestic manufacturing. Similarly, the RLMM provides a list of type and quality certified wind turbine models eligible for installation in the country.
These exemptions are intended to facilitate the swift deployment of renewable energy infrastructure, which is essential for the production of green hydrogen and its derivatives within SEZ/EOU. Further, these exemptions will apply to the RE plants to be commissioned before December 31, 2030, to supply power to plants for production of green hydrogen and its derivatives

Conclusion

From an industry perspective, these exemptions represent a significant and welcome action by the MNRE. By removing the requirement for RE plants within SEZs or EOUs to adhere to the ALMM for solar PV modules and the RLMM for wind turbine models, the MNRE has effectively lowered barriers to the rapid deployment of renewable energy infrastructure critical for green hydrogen production. This move is expected to result in reduced costs for green hydrogen producers, as they will have greater flexibility in sourcing power. Consequently, these producers can access more competitively priced options, thereby enhancing their ability to produce green hydrogen and its derivatives economically. Overall, this initiative not only supports the industry’s growth but also aligns with India’s broader renewable energy and sustainability goals.

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