Government of Rajasthan announces green hydrogen policy

The draft of the ‘Rajasthan Green Hydrogen Policy-2023’ has been approved by the government of Rajasthan, which aims to encourage the production of green hydrogen by giving priority to the use of the state’s substantial renewable energy resources.

The following incentives have been listed in the policy for the green hydrogen sector: For ten years, the 500 kilotonnes per annum (KTPA) renewable energy plants that are to be installed on the state’s transmission system will receive a 50 per cent transmission and distribution fee exemption, as well as a 100 per cent exemption from the extra and cross subsidy surcharges for procuring clean energy from other sources. A 30 per cent grant of up to Rs 50 million would be provided for priority in the land allocation and creation of a research facility for the production of green hydrogen from treated or brackish water. The new regulation has also lifted the prohibition on electricity withdrawal during peak times. Under the new policy, wheeling and transmission fees for power plants will be fully reimbursed or waived. Additionally, power plant banking fees will be refunded or waived for seven to ten years.

According to the Rajasthan Investment Promotion Scheme 2022, the thrust sector would include the green hydrogen industry. Furthermore, it will receive the advantages of manufacturing standard package by being included in the Sunrise Sector. Additional benefits under the scheme include a variety of discounts, access to water, and banking services. Furthermore, the capacity of captive power plants and the banking of generated electricity won’t be restricted. State-based green energy producers will get a variety of subsidies. The state will also see an increase in opportunities for employment. Furthermore, according to the policy, the state government aims to produce 2000 KTPA of energy by 2030. In this, projects will be categorised in four groups, which are: clean energy extraction through the power grid, the creation of clean energy and hydrogen of 700 KTPA in one location, the continuous production of 800 KTPA clean energy through round-the-clock power, and the clean energy residence of 500 KTPA through the network of Rajasthan Rajya Vidyut Prasaran Nigam Limited.