India’s Ministry of New and Renewable Energy (MNRE) has unveiled guidelines for its incentive schemes to promote domestic production of green hydrogen and electrolyzers.
India’s Ministry of New and Renewable Energy (MNRE) has released guidelines for incentive schemes for green hydrogen and electrolysis production. MNRE has appointed Solar Energy Corp. of India Ltd (SECI) as the implementing agency for the schemes.
The ministry said that incentives for green hydrogen production can be offered in several models, including bidding based on the required incentives. In incentive-based bidding, bidders must state the annual production capacity of green hydrogen and/or its derivatives for each of the first three production years for which the incentive is applied for, as well as the required incentive.
Incentives are distributed for five years from the start of production of electrolysis devices. The selection of the beneficiaries is based on the domestic value added and performance quotient (specific energy consumption of the electrolyzer being manufactured).
In the first round, bids are made for 1.5 GW of electrolyzer capacity. The minimum capacity of the offer is 100 MW and the maximum is 300 MW.
Sandeep Agarwal, founder and CEO of Greenzo, said that MNRE’s initiative will encourage much more investment in the production of electrolysis equipment in the Indian market. Agarwal said Greenzo Energy is setting up an alkaline electrolyzer plant with an annual capacity of 250 MW at Sanand, Gujarat and will benefit from the incentive scheme.
“As an MSME, we appreciate this initiative which will not only support the growth of the green hydrogen industry but also encourage the production of electrolysis equipment in the country,” he added. “This step is in line with the broader goal of achieving net zero emissions by 2070.”