India's Green Hydrogen Transition: Incentives and Opportunities Under SIGHT Scheme
Key Ideas
- The Ministry of New & Renewable Energy in India has issued guidelines for providing incentives to green hydrogen producers under the SIGHT scheme, focusing on the Tranche-II implementation.
- Tranche-II aims to have a capacity of 450,000 TPA of green hydrogen, with a significant portion allocated to biomass-based pathways and the remainder for technology-agnostic pathways.
- Solar Energy Corporation of India (SECI) will oversee the implementation, with the bidding process emphasizing the least average incentive quoted by the bidder and specific capacity limits for each bucket.
- The National Green Hydrogen Mission, launched in 2023 with substantial funding, is expected to drive India towards self-reliance in clean energy, reduce fossil fuel dependence, and position the country as a leader in green hydrogen technology.
The Ministry of New & Renewable Energy in India has introduced guidelines to support green hydrogen producers as part of the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme. These guidelines, released on July 3, 2024, outline the implementation details for Tranche-II, aiming to establish a capacity of 450,000 tonnes per annum (TPA) of green hydrogen. Within this capacity, 40,000 TPA is designated for biomass-based pathways (bucket-II), while the remainder is allocated for technology-agnostic pathways (bucket-I). Solar Energy Corporation of India (SECI) will manage the implementation, with the Request for Selection (RfS) set to be issued soon. Bidders will compete based on the least average incentive quoted, with specific capacity ranges for each bucket. The National Green Hydrogen Mission, initiated in 2023 with an allocated budget of Rs 19,744 crore until FY 2029-30, aims to bolster India's self-reliance through clean energy. The mission is expected to drive decarbonisation, reduce fossil fuel imports, and position India as a global leader in green hydrogen technology.