India has set a target to produce five million tonnes of green hydrogen and build 500 GW of renewable energy capacity by 2030, showing its ambitious plans for a green energy future.
International financial institutions have strongly supported the Indian government’s strategic policy actions; for example, the World Bank has provided a second $1.5 billion development loan within a year.
The recent $1.5 billion loan, which was extended in June 2023, shows its confidence in India’s green energy policies.
The World Bank’s Development Policy Financing Scheme, which focuses on promoting green hydrogen, promoting renewable energy for green hydrogen production, and enhancing financial access for these projects, provides these loans.
Surbhi Goyal, Senior Energy Specialist at the World Bank, Said To Mint. “We saw a lot of actions taken by the government, especially on demand generation for green hydrogen, which gave us a lot of confidence,” said
For both loans, the World Bank has set several key performance indicators, which will be monitored until June 2026. To ensure the successful implementation of India’s green hydrogen and renewable energy goals, interim targets have not been set.
Green Hydrogen Initiatives By Government
The Indian government has taken several actions to promote domestic ecosystems for low-carbon energy and green hydrogen. The creation of subsidies for the manufacture of electrolyzers and green hydrogen has been a significant contribution to transforming the country’s energy system.
Also, the Solar Energy Corporation of India (SECI) aims to create a strong infrastructure for electrolyzers and green hydrogen production.
The introduction of the Carbon Credit Trading Scheme (CCTS) is a significant change. It is expected to boost the domestic carbon credit market and improve access to funding for low-carbon energy projects.
The Government also defined Green Hydrogen for policy purposes in August 2023, providing clarity and reinforcing the Government’s commitment to green energy.
Government policies have boosted the demand for green ammonia and green hydrogen, boosting investor confidence. Last month, SECI sought bids for the supply of 539,000 tonnes of green ammonia in the year. Also, state-owned oil marketing companies are also inviting tenders to set up green hydrogen plants at their refineries.
