India Launches Incentive Scheme for Green Hydrogen Production under National Green Hydrogen Mission
Key Ideas
- The MNRE has notified the Scheme Guidelines for the “Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme - Component II: Incentive Scheme for Green Hydrogen Production”, aiming to promote green hydrogen production in India.
- Tranche-II of the program will have a capacity of 450,000 TPA of Green Hydrogen, with a portion reserved for biomass-based pathways and the rest for technology agnostic pathways, overseen by Solar Energy Corporation of India.
- The bidding process for Tranche-II will be based on the least average incentive quoted by the bidder, with specific capacity limits for each bucket and a maximum capacity allotment of 90,000 TPA per bidder.
- The National Green Hydrogen Mission, launched in January 2023 with substantial funding, is expected to accelerate India's clean energy goals, reduce dependence on fossil fuels, and position the country as a leader in Green Hydrogen technology and market.
The Ministry of New and Renewable Energy (MNRE) in India has recently announced the Scheme Guidelines for the "Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme - Component II: Incentive Scheme for Green Hydrogen Production". This initiative aims to foster the production of green hydrogen in the country. Tranche-II of the program has a planned capacity of 450,000 Metric Tonnes Per Annum (TPA) of Green Hydrogen, with a specific allocation of 40,000 TPA for biomass-based pathways and the remainder for technology agnostic pathways. Solar Energy Corporation of India (SECI) has been designated as the implementing agency for this tranche as well. The Request for Selection (RfS) will be issued by SECI in the near future, and the bidding process will hinge on the least average incentive quoted by the bidder. Under the scheme, there are set limits for minimum and maximum bid capacity in each bucket, with a maximum capacity allotment of 90,000 TPA per bidder. Furthermore, the National Green Hydrogen Mission, initiated in January 2023 with a budget allocation of Rs. 19,744 crores until FY 2029-30, is anticipated to bolster India's self-reliance through clean energy. The mission aims to drive significant decarbonisation of the economy, diminish reliance on fossil fuel imports, and position India as a frontrunner in Green Hydrogen technology and market, aligning with global trends towards clean energy transitions.
Topics
India
Renewable Energy
Sustainability
Energy Transition
Economic Development
Government Initiative
Auction Process
Latest News