Assam pauses green hydrogen policy, raising investor concerns

Assam has paused its flagship green hydrogen policy, causing concern among investors already affected by reduced clean energy incentives.  

The state had aimed to attract clean energy investments through subsidies and waivers. Energy firms such as NTPC Green, Larsen & Toubro, Sembcorp, and Abu Dhabi-based Ocior had shown initial interest in green hydrogen projects in Assam, Reuters reported.

According to Deccan Herald, the sudden pause has prompted some companies to reassess project plans worth millions of dollars.  

The state is now drafting a new policy, expected by the end of July. No explanation has been provided for the delay or the earlier incentive cuts. Officials say revisions are based on evolving demand, but have not offered details.

Assam’s clean energy policy, launched in February, underwent changes in June. Transmission subsidies were reduced, and bank guarantee requirements were raised, altering the financial viability of solar projects.

Industry representatives warned that limited renewable energy sources within Assam would make green hydrogen developers reliant on imported power, increasing costs and reducing competition. Without adequate subsidies for transmission, power costs in the state could be 10 to 15 per cent higher than in states with more stable policies.

Investors now face policy uncertainty in a region that had previously positioned itself as a clean energy hub.