Gujarat unveils renewable and green hydrogen policies targeting 100 GW clean power by 2030

The Gujarat government on Thursday unveiled new policies on renewable energy and green hydrogen, aiming to position the state as a major clean energy hub and accelerate its transition towards sustainable energy systems.

Chief Minister Bhupendra Patel announced the two policies – the ‘Integrated Renewable Energy Policy 2025’ and the ‘Gujarat Green Hydrogen Policy 2025’ – at an event in Gandhinagar on Good Governance Day, observed on 25 December to mark the birth anniversary of former prime minister Atal Bihari Vajpayee.

Aligned with India’s Nationally Determined Contributions (NDCs) and the vision of Viksit Gujarat@2047, the renewable energy policy seeks to promote investment, innovation, and grid stability, according to an official release.

The state targets more than 100 gigawatts of renewable capacity by 2030 to contribute towards India’s national goal of 500 gigawatts of non-fossil fuel-based capacity by the same year.

Battery Energy Storage Systems (BESS) form a key pillar of the new policy, supporting large-scale renewable energy integration. Grid-connected and co-located BESS projects with solar, wind and hybrid systems have been encouraged. Strategic locations for BESS will be identified by the Gujarat Energy Development Agency in coordination with Gujarat Energy Transmission Corporation, the State Load Despatch Centre and DISCOMs.

Under the renewable energy policy, commissioning timelines for projects have been relaxed, particularly for captive and third-party sale projects. Timelines for evacuation infrastructure will be determined based on voltage level rather than project capacity, with additional time permitted for project commissioning and evacuation line development.

The policy establishes a framework for wind repowering and refurbishment in line with the National Repowering Policy. Existing wind turbine generators will not be required to be dismantled mandatorily, and the timeline for repowering has been extended up to 24 months.

Renewable energy connectivity will be made available on demand through the Akshay Urja Setu portal. The policy also supports the development of new transmission schemes in renewable-rich zones and encourages emerging technologies including ocean energy, geothermal energy, concentrated solar thermal, building-integrated photovoltaic systems, rail and road-integrated photovoltaic applications, agrivoltaics and vertical-axis wind turbines, which will be supported through pilot projects.

Private sector participation and start-up activity have been encouraged, with integrated plans for employment generation and skill development in the green sector.

The Green Hydrogen Policy 2025 aims to establish Gujarat as a major hub for green hydrogen production while contributing to India’s broader decarbonisation agenda. The policy remains in effect for the next 10 years and targets production of up to 3 million metric tonnes per annum of green hydrogen by 2035. It also envisages the development of around 75 GW of renewable energy capacity and 30 GW of electrolyser capacity.

The state government estimates investments worth Rs 5 lakh crore over the coming years under the policy, with the potential to generate employment for around six lakh people, both directly and indirectly. The plan outlines support for production, storage, transportation and downstream use of green hydrogen and its derivatives including green ammonia and green methanol.

A key feature is a single-window facilitation mechanism to streamline approvals for projects. Priority will be given to projects in state-owned industrial estates, along with infrastructure support including power connectivity and water supply.

For electrolysis-based projects, BESS and oxygen bottling plants, the policy offers a 20 per cent capital subsidy. The same subsidy will apply to biomass-based green hydrogen projects. To promote adoption, 20 green hydrogen refuelling stations will receive a 30 per cent capital subsidy, while MSMEs will receive a subsidy of Rs 50 per kg for switching to green hydrogen for their energy requirements.