India Launches Green Hydrogen Incentive Program to Drive Sustainable Growth
Key Ideas
  • The Ministry of New and Renewable Energy in India has introduced guidelines for incentivizing up to 450,000 metric tons per annum of green hydrogen production under the SIGHT program, a crucial initiative of the National Green Hydrogen Mission.
  • The incentive structure aims to support producers in the initial years of production by offering decreasing incentives over a three-year period, gradually reducing as the industry matures to enhance competitiveness.
  • The program's auction process features two pathways for bidding – Technology Agnostic Pathways and Biomass-Based Pathways, with specific capacity allocations and eligibility criteria based on the chosen pathway.
  • To ensure efficient implementation, a monitoring committee chaired by the MNRE Secretary will oversee the program, which also includes funding for testing facilities, infrastructure, and regulatory framework development until 2026 with a total outlay of ₹2 billion.
The Ministry of New and Renewable Energy (MNRE) in India has rolled out guidelines for the distribution of incentives for the production of up to 450,000 metric tons per annum of green hydrogen under Component II of the Strategic Interventions for Green Hydrogen Transition (SIGHT) program. This initiative is part of the larger National Green Hydrogen Mission, which aims to boost the green hydrogen economy in India from the fiscal year 2025-26 to 2029-30. The program is divided into two components: Component I focusing on electrolyzer manufacturing incentives and Component II aimed at supporting green hydrogen production. The Solar Energy Corporation of India (SECI) will oversee the competitive bidding process and program execution. The incentive structure is designed to assist producers in the initial years, with a tiered approach offering decreasing incentives over three years. Auctions will occur in two pathways – Technology Agnostic and Biomass-Based – with specific capacity allocations and eligibility criteria. A monitoring committee led by the MNRE Secretary will supervise the program's implementation, including funding for testing facilities and infrastructure development. With a total outlay of ₹2 billion, the program is set to run until 2026, driving sustainable growth in the green hydrogen sector.
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