Government notifies Green Hydrogen Policy

The Ministry of Power (MoP) has notified the Green Hydrogen Policy to facilitate the transition from fossil fuel/fossil fuel-based feedstock to green hydrogen/green ammonia. A key measure of the policy is the waiver of interstate transmission system (ISTS) charges for a period of 25 years for manufacturers of green hydrogen/ammonia, for projects commissioned before June 30, 2025. Further, the policy stipulates that open access for sourcing of renewable energy will be granted within 15 days of receipt of application; banking will be permitted for a period of 30 days for renewable energy used for making green hydrogen/ammonia; and the benefits of renewable purchase obligations will be granted to green hydrogen/ammonia manufacturers for consumption of renewable energy. Moreover, distribution licensees can procure and supply renewable energy to manufacturers of green hydrogen/ammonia in their states at concessional prices, which will include the cost of procurement, wheeling charges and a small margin as determined by the state commission, among other measures.