India's Green Hydrogen Incentive Guidelines Unveiled Under SIGHT Scheme
Key Ideas
- The renewable energy ministry in India has released guidelines for incentivizing green hydrogen production under the SIGHT scheme, Tranche-II.
- Tranche-II aims to establish a capacity of 450,000 tonne per annum of green hydrogen, with a portion dedicated to biomass-based pathways.
- Solar Energy Corporation of India (SECI) will oversee the implementation, and the bidding process will be based on the least average incentive quoted by the bidder.
- The National Green Hydrogen Mission, with significant funding, is part of India's strategy towards self-reliance, decarbonization, and global clean energy leadership.
The Ministry of New & Renewable Energy in India has introduced guidelines for providing incentives to green hydrogen producers under the Strategic Interventions for Green Hydrogen Transition (SIGHT) program, specifically for Tranche-II. This tranche aims to establish a capacity of 450,000 tonnes per annum of green hydrogen. A statement from the ministry highlighted that 40,000 TPA capacity is reserved for biomass-based pathways (bucket-II), while the remaining capacity is allocated for technology-agnostic pathways (bucket-I). The guidelines, notified on July 3, 2024, involve the Solar Energy Corporation of India (SECI) as the implementing agency. SECI will soon issue the Request for Selection (RfS) for this tranche, with bidding based on the least average incentive quoted by the bidder. The bidding process specifies minimum and maximum bid capacities for both bucket-I and bucket-II, allowing bidders to participate in either or both. The National Green Hydrogen Mission, launched earlier, has a substantial budget allocated up to FY 2029-30. This mission is seen as crucial for India's aim to achieve self-reliance through clean energy, reduce reliance on fossil fuel imports, and lead in green hydrogen technology and market globally.
Topics
India
Renewable Energy
Energy Transition
Green Technology
Government Initiative
Incentives
Auction Process
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