Inner Mongolia Adjusts Hydrogen Industry Support – Removes Power Price Benefits for Equipment Manufacturers

Deep News08-14 22:41

The Inner Mongolia Autonomous Region People's Government issued a notice on August 14, deciding to revise parts of the 2022 policy titled "Opinions on Promoting High-Quality Development of the Hydrogen Energy Industry," officially abolishing the preferential electricity pricing for hydrogen equipment manufacturing enterprises. The notice takes effect from the date of issuance.

Under the revised terms, the original clause stating that "enterprises in western Inner Mongolia will have their production electricity prices referenced to the strategic emerging industry tariff, while enterprises in eastern Inner Mongolia will participate in market transactions with a 100% new energy allocation" has been removed. This means hydrogen equipment manufacturers will no longer benefit from these exclusive electricity pricing policies, reverting to the market-based trading mechanism for standard large industrial electricity users.

The adjustment comes just over four years after the original policy was introduced, and is viewed by industry insiders as a significant signal that Inner Mongolia's hydrogen sector is transitioning from a "policy incubation phase" to a "market-driven competition phase." Analysts suggest the removal of the electricity price subsidy may be driven by multiple factors: first, to align with national efforts to eliminate irregular preferential electricity pricing and unify the electricity market construction; second, by phasing out blanket subsidies, it aims to pressure enterprises to enhance their technological capabilities and cost control, thereby fostering high-quality development in the industry.

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