India is set to produce five million tonnes of green hydrogen and achieve 500GW of installed renewable energy capacity by 2030, reflecting its ambitious plans for a green energy future.
The Indian government’s strategic policy interventions have garnered strong support from international financial institutions, with the World Bank extending a second $1.5 billion development loan within a year to bolster these initiatives. The recent $1.5 billion loan, following a similar one granted in June 2023, underscores the World Bank’s confidence in India’s green energy policies.
These loans are part of the World Bank’s development policy financing scheme, focusing on promoting green hydrogen, scaling up renewable energy for green hydrogen production, and enhancing financial access for these projects. “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 Surbhi Goyal, Senior Energy Specialist at the World Bank, reports Mint.
The World Bank has set several key performance indicators for the two loans, which will be monitored until June 2026. Although interim targets have not been established, overall progress will be closely observed to ensure the successful implementation of India’s green hydrogen and renewable energy goals.
The Indian government has implemented several measures to foster a domestic ecosystem for green hydrogen and low-carbon energy. Key initiatives include subsidies for manufacturing electrolysers and green hydrogen, which have been pivotal in shaping the country’s energy landscape. Additionally, tenders issued by the Solar Energy Corporation of India (SECI) aim to establish robust infrastructure for electrolyser and green hydrogen manufacturing.
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A significant development is the introduction of the Carbon Credit Trading Scheme (CCTS), anticipated to spark a domestic carbon credit market and improve financial access for low-carbon energy projects. In August 2023, the government also defined green hydrogen for policy purposes, providing clarity and reinforcing its commitment to green energy.
The government’s policies have generated substantial demand for green ammonia and green hydrogen, further boosting investor confidence. Last month, SECI invited bids for supplying 539,000 tonnes of green ammonia annually for the fertilizer industry. Additionally, state-owned oil marketing companies are preparing tenders to establish green hydrogen units at their refineries.