The Ministry of New and Renewable Energy (MNRE) has released a model service agreement for “Electrolyser-as-a-Service” (EAAS) under the National Green Hydrogen Mission. The agreement provides a standard contractual framework to support the development of green hydrogen projects and reduce financial and operational challenges for industrial consumers. Under the build-own-operate model, technology developers will set up, own and operate electrolyser plants at the premises of industrial consumers. Instead of investing in hydrogen production facilities, industrial users will purchase the hydrogen and oxygen produced, while the service provider will remain responsible for owning and operating the plant.
Furthermore, the model agreement aims to simplify contract negotiations, reduce transaction costs, and improve ease of doing business for both developers and industrial offtakers. It proposes a 15-year operating period starting after the successful completion of a performance guarantee test. The payment structure includes a fixed monthly payment covering equipment leasing and operating costs, along with annual revisions linked to the consumer price index. Additionally, the agreement defines performance standards for hydrogen production, product purity, energy consumption and plant availability, with incentives for better efficiency and penalties if agreed performance levels are not met.
The framework also outlines the responsibilities of industrial consumers. They must provide the required utilities and site infrastructure, obtain statutory approvals from environmental and safety authorities, and secure green hydrogen certification as per the MNRE guidelines. Moreover, all project equipment must comply with domestic content procurement requirements and applicable national land border trade regulations. The MNRE has clarified that the agreement is only a model document, and both parties are free to modify its provisions based on project-specific technical, commercial and financial requirements.
