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Time of India
6 days ago
- Business
- Time of India
Assam govt puts green hydrogen policy hold; investors hit
Assam government has unexpectedly put its much-anticipated green hydrogen policy on hold, a move that has surprised potential investors and added to concerns following recent cuts in clean energy incentives. The state had aimed to attract significant investments in its renewable energy sector, a region that has historically lagged behind other parts of India in adopting clean energy. Initial interest in green hydrogen projects had been expressed by major energy firms, including NTPC Green, Larsen & Toubro, Singapore-listed Sembcorp, and Abu Dhabi-based Ocior . However, the state's decision to pause the policy has forced these companies to re-evaluate their investment plans and projected returns, potentially impacting millions of dollars in capital. "Every state keeps on revising its policy and what incentive it can give based on the demand and requirement," said Krishna Kumar Dwivedi , Principal Secretary at Assam's power department, without elaborating on the reasons for the halt or the reduction in previously announced incentives. Investors' concerns The green hydrogen policy was initially unveiled in February. The surprising pause follows a similar pattern seen in June when Assam significantly reduced transmission subsidies and increased bank guarantees within its solar policy compared to the original framework. Industry experts are voicing concerns over the inconsistency of the policy environment in the state. "Investors look for long-term stability even if policies aren't best designed," said Debabrat Ghosh, Head of India at Aurora Energy Research. Furthermore, a significant challenge for green hydrogen projects in Assam is the state's limited renewable energy sources. This could lead to a reliance on neighbouring states for power, driving up costs and reducing competitiveness. An official from a large Indian renewables developer highlighted this concern, stating, "Without adequate subsidies for transmission, power costs could be 10-15 per cent higher. Unless such costs are reduced, Assam will fall behind other states with more competitive policies." The state government is reportedly working on a new draft policy, which is anticipated by the end of this month.
Business Recorder
6 days ago
- Business
- Business Recorder
India's Assam state pauses green hydrogen policy in setback to investors, sources say
India's northeastern state of Assam has put its flagship green hydrogen policy on hold, government and industry sources said, surprising investors already hit by a cut in incentives for clean energy projects. The state, the largest in the northeast, has sought to attract major investments in a region that has lagged behind much of the country in renewable energy adoption, offering financial incentives and waivers to bring in electricity. Energy firms, including NTPC Green, Larsen And Toubro, Singapore-listed Sembcorp, and Abu Dhabi-based Ocior, expressed initial interest in bidding for green hydrogen projects in Assam, four sources familiar with the matter told Reuters. Assam's decision to pause the green hydrogen policy surprised some of the companies, forcing them to recalibrate potential returns and investment plans worth millions of dollars, three of the sources said. The state is now working on a new draft policy, which is expected by the end of this month, the government official said. The companies did not respond to Reuters' emails seeking comment. The industry officials and sources declined to be identified as they are not authorised to speak on the matter. Green hydrogen is produced using clean electricity and is seen as a decarbonisation tool to help limit global warming. 'Every state keeps on revising its policy and what incentive it can give based on the demand and requirement,' Krishna Kumar Dwivedi, principal secretary at Assam's power department, said without elaborating. He did not provide details on why Assam is holding back on the policy or the reasons for cuts in previously announced incentives. The clean energy policy was first unveiled in February. In June, Assam sharply reduced transmission subsidies and increased bank guarantees in its solar policy compared to the initial framework. 'Investors look for long-term stability even if policies aren't best designed,' said Debabrat Ghosh, head of India at Aurora Energy Research. An official from a large Indian renewables developer said the lack of renewable energy sources in Assam will make green hydrogen projects in the state dependent on its neighbours for power, which will drive up costs and lower competition. 'Without adequate subsidies for transmission, power costs could be 10%-15% higher. Unless such costs are reduced, Assam will fall behind other states with more competitive policies,' the official said.
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Business Standard
6 days ago
- Business
- Business Standard
Assam halts green hydrogen policy; investors reassess plans: Report
India's northeastern state of Assam has put its flagship green hydrogen policy on hold, government and industry sources said, surprising investors already hit by a cut in incentives for clean energy projects. The state, the largest in the northeast, has sought to attract major investments in a region that has lagged behind much of the country in renewable energy adoption, offering financial incentives and waivers to bring in electricity. Energy firms, including NTPC Green, Larsen And Toubro, Singapore-listed Sembcorp, and Abu Dhabi-based Ocior, expressed initial interest in bidding for green hydrogen projects in Assam, four sources familiar with the matter told Reuters. Assam's decision to pause the green hydrogen policy surprised some of the companies, forcing them to recalibrate potential returns and investment plans worth millions of dollars, three of the sources said. The state is now working on a new draft policy, which is expected by the end of this month, the government official said. The companies did not respond to Reuters' emails seeking comment. The industry officials and sources declined to be identified as they are not authorised to speak on the matter. Green hydrogen is produced using clean electricity and is seen as a decarbonisation tool to help limit global warming. "Every state keeps on revising its policy and what incentive it can give based on the demand and requirement," Krishna Kumar Dwivedi, principal secretary at Assam's power department, said without elaborating. He did not provide details on why Assam is holding back on the policy or the reasons for cuts in previously announced incentives. The clean energy policy was first unveiled in February. In June, Assam sharply reduced transmission subsidies and increased bank guarantees in its solar policy compared to the initial framework. "Investors look for long-term stability even if policies aren't best designed," said Debabrat Ghosh, head of India at Aurora Energy Research. An official from a large Indian renewables developer said the lack of renewable energy sources in Assam will make green hydrogen projects in the state dependent on its neighbours for power, which will drive up costs and lower competition. "Without adequate subsidies for transmission, power costs could be 10%-15% higher. Unless such costs are reduced, Assam will fall behind other states with more competitive policies," the official said.
