How Electricity Law Supports India’s Green Hydrogen Mission

India is racing toward a clean energy future, and green hydrogen is poised to be a game-changer in this mission. As a carbon-free fuel derived by splitting water using renewable electricity, green hydrogen holds immense promise in reducing India’s dependence on fossil fuels. However, the success of this ambitious initiative depends not only on technology and infrastructure but also on a strong legal framework. In this context, Electricity Laws in India play a vital role in supporting the growth and integration of green hydrogen into the national energy ecosystem.

What is Green Hydrogen and Why Does It Matter?

Green hydrogen is produced using electrolysis powered by renewable energy sources such as solar or wind. Unlike grey or blue hydrogen (derived from fossil fuels), green hydrogen emits zero carbon during production. It can power vehicles, industrial furnaces, and even residential energy systems, all while helping India meet its climate commitments under the Paris Agreement.

India’s National Green Hydrogen Mission aims to make the country a global hub for green hydrogen production and export. The mission’s success hinges on several enablers—one of the most important being Electricity Laws that regulate how energy is generated, distributed, and priced.

Role of Electricity Laws in Green Hydrogen Production

The production of green hydrogen relies heavily on a steady and affordable supply of renewable electricity. Here’s how Electricity Laws are supporting this sector:

1. Open Access Policy and Captive Power Use

Electricity regulations in India now allow green hydrogen producers to set up captive renewable energy plants or procure power through open access. These provisions are critical because they ensure that hydrogen production units can operate cost-effectively without relying on traditional grid power, which may be carbon-intensive and expensive.

Recent amendments in the Electricity Act and National Tariff Policy are helping streamline the approval process for open access, thus accelerating green hydrogen projects.

2. Waiver of Transmission Charges

To encourage the adoption of renewable energy, the Ministry of Power has announced waivers on interstate transmission charges for green hydrogen production facilities until 2030. This incentive is legally backed by updated Electricity Laws, making green hydrogen economically viable by reducing operational costs.

3. Time-of-Day Tariffs for Efficient Energy Use

Time-of-Day (ToD) tariffs are emerging as a strategic tool under Indian electricity regulations. These tariffs allow hydrogen producers to buy electricity at off-peak hours at reduced rates, maximizing efficiency and lowering production costs. Legal reforms in Electricity Laws now support dynamic pricing models that align with the energy demands of modern industries, including hydrogen.

Regulatory Challenges Ahead

Despite these positive developments, several regulatory bottlenecks still need attention:

• Grid Integration: Integrating decentralized renewable energy with the national grid remains a challenge.

• Standardization: There is a lack of uniform regulations across states regarding wheeling charges and cross-subsidy surcharges.

• Licensing Complexity: Hydrogen producers often face delays in obtaining licenses due to overlapping jurisdiction of central and state electricity bodies.

Legal experts, including Advocate P.S. Khurana, emphasize the importance of a unified legal approach to address these challenges. A streamlined policy framework will not only boost investor confidence but also fast-track India’s transition to a hydrogen-based economy.

Future Outlook: Legal Reforms and Policy Innovations

India is expected to see several reforms in Electricity Laws in the next few years. The Ministry of Power is working on a Green Hydrogen Consumption Obligation (GHCO), which would mandate certain industries to use green hydrogen. Legal enforcement of such obligations will require robust regulatory backing.

Additionally, regulatory sandboxes are being proposed to test new business models in green hydrogen under real-world conditions, which could lead to the next generation of electricity and energy laws in India.

Conclusion

India’s green hydrogen mission is not just about harnessing a clean fuel—it is about transforming the way energy is produced, transported, and consumed. For this transformation to be sustainable and scalable, a strong legal foundation is essential. Updated and forward-looking Electricity Laws are proving to be the backbone of this mission, enabling innovation, reducing costs, and supporting private sector participation.

As the government continues to push for a hydrogen economy, legal experts like Advocate P.S. Khurana highlight the critical role of law in balancing the needs of sustainability, investment, and public good. With the right legal framework, India can emerge as a global leader in green hydrogen and chart a new course toward energy independence.