The government is in the process of formulating a draft scheme for the consistent and dispatchable round-the-clock renewable energy utilizing green hydrogen as storage, according to individuals familiar with the matter, reported The Economic Times.
As per media report, sources suggest that the National Green Hydrogen Mission (NGHM) plan may extend financial support through mechanisms such as contract for difference (CFD) or viability gap funding. It has been mentioned that an initial pilot project with a capacity of 100 MW could be contemplated within the framework of this initiative.
Media report further added that one of the persons familiar with the matter said, “Discussions are ongoing.” The government is exploring various options for financial assistance, which may also include provisions from the NGHM. This development signifies the inaugural phase of incorporating green hydrogen bundling to generate continuous power. Green hydrogen, in this context, denotes gas derived from renewable sources.
The NGHM, introduced in January 2023 with an initial allocation of ₹19,744 crores, encompasses ₹17,490 crores designated for the Strategic Interventions for Green Hydrogen Transition (SIGHT) program and ₹1,466 crores allocated for pilot projects. This budget also allocates Rs 400 crore for research and development, along with Rs 388 crore for other components.
“The amount for the funding will depend on the final structure of the scheme,” the source stated, highlighting the potential for a separate notification of the corpus.
