Published by: Vivek Dubey
The Indian Government has sanctioned two components of the Incentive scheme for Electrolyser manufacturing under the National Green Hydrogen Mission.
The expenses will be met from budget provisions under the Hydrogen Mission head, and the Solar Energy Corporation of India (SECI) will implement the scheme.
The Strategic Interventions for Green Hydrogen Transition (SIGHT) program has an outlay of Rs 17,490 crore, while the National Green Hydrogen Mission’s total outlay is Rs 19,744 crore up to FY 2029-30.
Component 1 of the Incentive scheme for Electrolyser manufacturing will be implemented from FY 2025-26 to FY 2029-30 with an outlay of Rs 4,440 crore.
The scheme aims to maximise indigenous electrolyser manufacturing capacity and achieve lower production costs.
The base incentive will begin from Rs 4,440/kW and taper down yearly for five years.
Applicants need to quote their annual manufacturing capacity, committed specific energy consumption, and local value addition.
Bidder eligibility is fixed at over Rs 1 crore/MW of quoted manufacturing capacity, and half of the annual sales of electrolysers must be installed in domestic projects.
A total of 1500 MW capacity is available for bidding under the first tranche, with a maximum capacity of 300 MW and a minimum of 100 MW allowed per bidder.
Component 2 of the Incentive scheme for Electrolyser manufacturing will have a total outlay of Rs 13,050 crore from FY 2025-26 to FY 2029-30.
The scheme aims to maximise the production of Green Hydrogen, encourage large-scale use, and enhance cost-competitiveness compared to fossil fuels.
A direct incentive of Rs/kg of Green Hydrogen production will be given for the first three years to selected beneficiaries.
Incentives will be capped at Rs 50/kg in the first year, Rs 40/kg in the second year, and Rs 30/kg in the third year of production.
A total of 4.10 LMT/annum of Green Hydrogen is available for bidding under Technology Agnostic Pathways (TAP), while 40,000 MT/annum of Green Hydrogen is available for bidding under Biomass-based pathways (BBP).
The maximum capacity allocated to a bidder under TAP will be 90,000 MT/annum, while the minimum would be 10,000 MT/annum.