The Ministry of New and Renewable Energy (MNRE) has introduced a Model Service Agreement for “Electrolyser as a Service” (EAAS) under the National Green Hydrogen Mission (NGHM), marking another important step toward accelerating the adoption of green hydrogen across the country’s industrial sector. The model agreement, published on July 23, 2026, is designed to provide a standardized contractual framework that supports the development of green hydrogen projects while reducing financial and operational barriers for industrial consumers.
The EAAS model follows a Build-Own-Operate (BOO) approach, allowing technology developers to establish, finance, own, and operate electrolytic hydrogen generation plants at the premises of industrial consumers. Instead of investing significant capital in building hydrogen production facilities, industrial users can purchase the hydrogen and oxygen generated by these plants while leaving ownership and operational responsibilities with the service provider. This approach is expected to reduce upfront investment requirements and encourage wider adoption of green hydrogen technologies.
According to the Ministry, the standardized agreement is intended to simplify contract negotiations, lower transaction costs, and improve the ease of doing business for both project developers and industrial off-takers. By providing a common contractual framework, the government aims to create greater confidence among investors and accelerate the commercialization of green hydrogen infrastructure in India.
The model agreement sets out detailed operational responsibilities, risk allocation mechanisms, and commercial terms for both parties. It proposes a fixed operational period of 15 years, beginning after the successful completion of a Performance Guarantee Test. During this period, the technology developer retains full ownership and operational control of the electrolyser plant while supplying hydrogen to the industrial consumer.
The payment structure under the agreement consists of a Fixed Monthly Payment that covers equipment leasing and operational expenses. It also includes annual price revisions linked to the Consumer Price Index (CPI), allowing costs to be adjusted over time in line with inflation.
To ensure efficient plant performance, the agreement establishes clear technical benchmarks related to hydrogen production volume, product purity, and Threshold Energy Consumption (TEC). Developers are required to maintain these performance standards throughout the contract period. The framework also monitors annual efficiency degradation and includes financial incentives for achieving lower electricity consumption, while imposing penalties if energy usage exceeds agreed limits. In addition, developers must guarantee a minimum level of annual plant availability, with payment deductions applicable if availability targets are missed due to reasons attributable to the service provider.
Industrial consumers also have defined responsibilities under the agreement. They are required to provide essential utilities, site infrastructure, and obtain necessary statutory approvals from environmental and safety authorities. Off-takers are also responsible for obtaining Green Hydrogen certification in accordance with guidelines issued by the Ministry. Furthermore, all equipment used in the projects must comply with domestic content procurement requirements and applicable national land border trade regulations.
MNRE has clarified that the published agreement is intended only as a model reference document. Developers and industrial consumers remain free to negotiate and modify its provisions to meet project-specific technical, commercial, and financial requirements. The Ministry expects the standardized framework to reduce investment risks, support faster project execution, and strengthen India’s ambition of becoming a global hub for green hydrogen and its derivatives.
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