Approval Requirements Waived For Setting Up Wind Turbines In SEZs And EOUs

The government's decision to exempt businesses from the approval requirements for setting up wind turbine units has come as a shot in the arm for the renewable energy sector. The move is expected to support the energy needs of manufacturing units in Special Economic Zones (SEZs) and Export-Oriented Units (EOUs). The exemption will help industries set up new wind turbine units, add to the existing renewable energy capacity, and accelerate efforts towards energy transition in India.

Renewable energy plants located in special economic zones or export-oriented units are exempt from certain requirements for wind turbine models. These plants must supply power exclusively for production plants of green hydrogen or its derivatives in the same or different special economic zones or export-oriented units. This exemption applies to all qualifying renewable energy plants commissioned by December 31, 2030.

The exemption will make it easier to set up new wind turbines and green hydrogen production facilities. Furthermore, India's energy transition will largely depend on the progress of adding and developing energy storage capacities.

The 'Revised List of Models and Manufacturers' is a rigorous mechanism for granting approvals to investors wishing to establish a wind turbine unit in India, including those dedicated to exclusively supplying energy to green hydrogen units within the SEZs/EOUs. This legacy mechanism has been at the heart of a rigorous approval process involving lengthy timelines, transfer of paperwork from one ministry to another and regulatory overlaps.

As a process, Indians or foreign investors need RLMM approval for every machine they want to install in India before starting their plants. This is a crucial step for the Indian wind energy sector. Therefore, the exemption from this requirement has surprised many industry stakeholders. Some industry leaders fear that the exemption could compromise the quality and safety of the machines being set up. They believe that the decision favours a specific group of industrialists involved in green hydrogen and renewable energy who intend to import a 3.2-megawatt turbine from China.

While global climate change challenges impact all, India is at the forefront of the energy transition from fossil fuel-based to environment-friendly energy for a sustainable future. Prime Minister Narendra Modi has envisioned a pathway towards decarbonisation, promoting a greener economy and building a resilient future. At COP26 in Glasgow in 2021, set the target to become net zero by 2070.

India's commitment to environmental sustainability is unwavering. The country has set a target to achieve net zero emissions by 2070. At COP26, India announced its ambitious plan to establish 500 GW of fossil fuel-free power-generating capacity and reduce the emissions intensity of its GDP by 45 percent by 2030 compared to its 2005 level.

According to the Intergovernmental Panel on Climate Change (IPCC), temperature must not be allowed to breach 1.5°C in line with the Paris Agreement. However, at COP28 in November 2023, the IPCC warned that unless there is a dramatic change in current policies, global warming would cross 3 degrees C, which could trigger an unmitigated disaster. To avert this, deep emission reductions are imperative.

In per capita terms, Russia and the US top the infamous list of emitters, followed by China. India is low down on this list, way below the global average of 6.76 trillion carbon dioxide equivalent (tCO2 eq).