Incentive Scheme for Electrolyser Manufacturers
In this post, incentive scheme for electrolyser manufacturers, implementation agency, local value addition, incentive on the basis of make in India, incentive criteria, bidding and selection process is given. The union cabinet has approved the national green hydrogen mission with total outlay of Rs 19,774 crore up to FY 2029 – 30.
- 7The Strategic interventions for Green Hydrogen Transition programme is a major financial measure under the mission, with an outlay of Rs. 17,490 crore.
- The programme has two distinct financial incentive mechanisms to support domestic manufacturing of electrolysers and production of green hydrogen.
Strategic Interventions For Green Hydrogen Transition (SIGHT) Program
- The government of India’s Strategic interventions for Green Hydrogen Transition (SIGHT) programme – component I: Incentive Scheme for electrolyser manufacturing of the national green hydrogen mission for the period from FY 2025 – 26 to FY 2029 – 30 with total outlay of Rs. 4440 crore.
Objective of Mission
- Maximize the indigenous electrolyser manufacturing capacity
- Achieving lower levelized cost of hydrogen production
- Ensure globally competitive performance and quality of products
- Supporting and promising technologies
- Progressively domestic value addition
Implementation Agency
- Solar Energy Corporation of India (SECI) shall be implementing agency for implementation of the scheme, under the ministry of power and renewable energy.
Incentive on the basis of Specific Energy of Electrolyser and Local Value Addition
- The electrolysers manufacturer gets support of Rs./ kw to the manufacturing capacity.
- Base incentive will start with Rs.4440/kW in the first year and will gradually taper down on an annual basis.
- The incentives proposed under the scheme will be provided for 5 years form the commencement of manufacturing of electrolysers.
- The scheme aims to provide incentive for manufacturers of efficient and high-quality electrolysers in India. The following parameters considers for the calculation of incentives.
|
Category Number |
Specific Energy Consumption (kWh/kg of H2 ) |
Performance Quotient |
|
1 |
σ < 46 |
1.20 |
|
2 |
46 ⩽ σ ⩽ 47 |
1.16 |
|
3 |
47 ⩽ σ ⩽ 48 |
1.12 |
|
4 |
48 ⩽ σ ⩽ 49 |
1.08 |
|
5 |
49 ⩽ σ ⩽ 50 |
1.04 |
|
6 |
50 ⩽ σ ⩽ 51 |
1.00 |
|
7 |
51 ⩽ σ ⩽ 52 |
0.96 |
|
8 |
52 ⩽ σ ⩽ 53 |
0.92 |
|
9 |
53 ⩽ σ ⩽ 54 |
0.88 |
|
10 |
54 ⩽ σ ⩽ 55 |
0.84 |
|
11 |
55 ⩽ σ ⩽ 56 |
0.80 |
|
12 |
σ ⩾
56 |
0 |
Local Value Addition
- In order to eligible for incentive, the bidder would have to add the minimum local value addition (LVA) for each year of production of electrolysers as per following table
For Alkaline Electrolysers
|
Year of
Production |
1st |
2nd |
3rd |
4th |
5th |
|
|
40% |
50% |
60% |
70% |
80% |
Proton Exchange Membrane / Solid Oxide Electrolysers / Anion Exchange Membrane Electrolysers
|
Year of
Production |
1st |
2nd |
3rd |
4th |
5th |
|
|
30% |
40% |
50% |
60% |
70% |
The percentage of local value addition will be
calculated as follows
LVA = ( [sale value of electrolyser – value of
imports] / sale value of electrolyser ) × 100%
Local Value Addition Factor
The LVA factor will be carried out on an annual basis.
The weighted average LVA for the complete sales in a given year shall be certified
by statutory auditor.
For Alkaline Electrolyser
|
LVA% |
LVA < 40% |
40% ⩽ LVA ⩽ 50% |
50% ⩽ LVA ⩽ 60% |
60% ⩽ LVA ⩽ 70% |
70% ⩽ LVA ⩽ 80% |
80% ⩽ LVA ⩽ 90% |
LVA > 90% |
|
LVA Factor |
0 |
0.4 |
0.5 |
0.6 |
0.7 |
0.8 |
1.0 |
For PEM/SOEC/AEM Electrolyser
|
LVA% |
LVA < 30% |
30% ⩽ LVA ⩽ 40% |
40% ⩽ LVA ⩽ 50% |
50% ⩽ LVA ⩽ 60% |
60% ⩽ LVA ⩽ 70% |
70% ⩽ LVA ⩽ 80% |
LVA > 80% |
|
LVA Factor |
0 |
0.4 |
0.5 |
0.6 |
0.7 |
0.8 |
1.0 |
Bid Selection Criteria
- The selection parameter will be calculated as the sun of the products of the quoted LVA factor and performance quotient over the 5 year period
Selection Parameter =
- The net worth of the bidder, as the last date of financial year should be equal or greater than Rs 1 crore per MW of manufacturing capacity.
- The beneficiary will have to demonstrate minimum 50% of the annual sales of electrolysers for installation of projects in India.
- The specific energy consumption to be equal or less than 56 kWh per kg of hydrogen production.
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