According to people familiar with the matter, the government is developing a draft plan for reliable and dispatchable renewable energy that uses green hydrogen as storage. The National Green Hydrogen Mission plan may provide financial assistance in the form of contract for difference (CFD) or viability gap funding, they said. According to them, the scheme could include a 100-MW pilot project.
"Discussions are going on," one of the people said. According to the person, the government is looking into financial assistance options, including the National Green Hydrogen Mission (NGHM). This will be the first step in bundling green hydrogen to generate continuous power. Green hydrogen is gas produced from renewable sources.
The NGHM was launched in January 2023 with an initial outlay of ₹19,744 crore, which included ₹17,490 crore for the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme and ₹1,466 crore for pilot projects.
This also included Rs 400 crore for research and development and Rs 388 crore toward other components.
"The amount (for funding) will depend on the final structure of the scheme," the source said, adding that the corpus could be announced separately.
Under the terms of the scheme under consideration, if financial assistance is provided through VGF, the government may invite bids on either the project's tariff or the amount of funding.
In the case of a contract for difference, if a developer bids a certain tariff in order to obtain funding, it will sell the power on the exchanges at that rate with a certain permissible variation, and any difference will be settled through the corpus, according to the person.
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