The Gujarat government has introduced new policies on renewable energy and green hydrogen. These initiatives aim to position the state as a leader in clean energy, addressing climate change challenges. The Integrated Renewable Energy Policy 2025 and Gujarat Green Hydrogen Policy 2025 were launched by Chief Minister Bhupendra Patel in Gandhinagar. This event coincided with Good Governance Day, commemorating former Prime Minister Atal Bihari Vajpayee’s birth anniversary on 25 December.
These policies align with India’s Nationally Determined Contributions (NDCs) and the vision of Viksit Gujarat@2047. The renewable energy policy aims to make Gujarat a global clean energy hub by fostering investment, innovation, and grid stability. The state targets over 100 gigawatts of capacity by 2030, contributing to India’s goal of 500 gigawatts of non-fossil fuel-based energy capacity by the same year.
Renewable Energy Policy Focus
A significant aspect of this policy is the promotion of Battery Energy Storage Systems (BESS). These systems are crucial for integrating large-scale renewable energy and ensuring grid stability. The policy encourages BESS projects alongside solar, wind, and hybrid initiatives. Strategic locations for BESS installation will be identified by the Gujarat Energy Development Agency in collaboration with other state agencies.
The RE Policy offers relaxations for commissioning timelines, especially for captive and third-party sale projects. Timelines for evacuation infrastructure have been adjusted based on voltage levels rather than project capacity. Additional time is allowed for project commissioning and evacuation lines, facilitating smoother implementation.
Green Hydrogen Policy Highlights
The Green Hydrogen Policy 2025 aims to establish Gujarat as a major hub for green hydrogen production. This supports India’s broader clean energy and decarbonisation goals. The policy is set to remain effective for ten years, targeting up to 3 million metric tonnes per annum (MMTPA) of green hydrogen production by 2035.
The policy outlines a framework to promote green hydrogen production, storage, transportation, and use. It highlights a single-window facilitation mechanism for streamlining approvals and clearances for green hydrogen projects. The government prioritises these projects in state-owned industrial estates, offering infrastructure support like power connectivity and water supply.
Investment and Employment Opportunities
The government estimates that implementing the policy could attract investments worth Rs 5 lakh crore over the coming years. It is expected to generate employment opportunities for around six lakh people, both directly and indirectly. The policy promotes private sector participation, start-ups, and initiatives for employment generation in the green energy sector.
For electrolysis-based projects, BESS, and oxygen bottling plants, the policy offers a 20 per cent capital subsidy. A similar subsidy is available for biomass-based green hydrogen projects. To encourage green hydrogen use, the state provides a 30 per cent capital subsidy to 20 refuelling stations. MSMEs can receive Rs 50 per kg subsidy for adopting green hydrogen.
Encouraging Innovation in Renewable Energy
The RE Policy supports emerging renewable technologies to diversify Gujarat’s clean energy portfolio. This includes ocean energy, geothermal energy, concentrated solar thermal (CST), building-integrated photovoltaic (BIPV) systems, rail and road-integrated photovoltaic (RIPV) applications, agrivoltaics, and vertical-axis wind turbines through pilot projects.
The policy also establishes a supportive framework for wind repowering and refurbishment aligned with the National Repowering Policy. Repowering is permitted without dismantling existing wind turbines, with an extended timeline of up to 24 months.
Overall, these policies aim to create an enabling environment for large-scale green hydrogen production and downstream use by industries. They focus on integrating advanced technologies while promoting investment and innovation in Gujarat’s renewable energy sector.
With inputs from PTI
