India’s green hydrogen push faces challenges amid low incentive rates, IEEFA reveals

India’s drive towards green hydrogen production could be slowed by low incentive rates, a new report from the Institute for Energy Economics and Financial Analysis (IEEFA) has revealed.

Having experienced a strong turnout in the request for selection (RFS) process for green hydrogen production incentives, bids surpassed the available capacity for support of 450,000 tonnes per year (tpy), exceeding 550,000 tpy.

However, incentive rates outlined by the Indian Government under its Strategic Initiative for Green Hydrogen Technologies (SIGHT) scheme, fall far short of other international mechanisms, the IEEFA report said.

It revealed the levilised cost of hydrogen (LCOH) in India currently ranges between Rs380-520/kg ($4.5-6.3/kg), with the average incentive for the initial three years of green hydrogen production set at just Rs40/kg ($0.48/kg).

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