The Ministry of New and Renewable Energy (MNRE) has issued a model service agreement for electrolytic hydrogen generation plants under the electrolyser-as-a-service (EAAS) model. The framework is intended to serve as a reference for hydrogen project developers, offtakers and other stakeholders, while allowing them to modify commercial terms based on project-specific requirements. It aims to reduce transaction costs and facilitate faster contract negotiations.
Under the EAAS model, the service provider will design, finance, construct, commission, own, operate and maintain the hydrogen generation plant on a build-own-operate basis throughout the contract period, while retaining ownership of the facility. The consumer will provide the project site, utilities, statutory approvals and civil works but will not acquire ownership of the plant or equipment. The agreement provides for a contract period of 15 years, extendable by mutual consent. Consumers will pay a fixed monthly payment comprising lease charges and operation and maintenance charges payable to the service provider. The agreement also provides for annual escalation of a specified portion of the fixed monthly payment based on the consumer price index for industrial workers. Consumers are required to obtain, maintain and renew Green Hydrogen certification under MNRE’s Green Hydrogen Standard. The service provider is required to provide the operational data and documentation necessary for obtaining the certification.