Connect with us

Hi, what are you looking for?


Clean Power

India Extends Transmission Charge Waiver For Green Hydrogen Projects

The Indian government has relaxed eligibility criteria for the exemption of the transmission charge waiver for renewable energy projects supplying power to green hydrogen projects. 

Renewable energy projects in India supplying power to green hydrogen or green ammonia production plants will be exempted from payment of transmission charge provided they are commissioned by 31 December 2030. Earlier, the commissioning deadline for such projects was 30 June 2025. 

According to government sources, the extension has been granted as green hydrogen production plants usually take 3-4 years to be commissioned. The previous commissioning deadline would have made any waiver on transmission charges redundant for green hydrogen projects. 

The waiver is expected to reduce cost of renewable energy production by Rs 1-2 per kilowatt-hour, making a significant impact on the final cost of green hydrogen and green ammonia production. 

 The Indian government targets large-scale production of green hydrogen at $1-1.50 per kilogram, compared to the present $4-5 per kilogram. Apart from the waiver of transmission charges, the government is believed to working on other incentives as well. 

The government is expected to launch a production linked incentive scheme for electrolyzer manufacturing. The scheme will be on the lines of the $3 billion subsidy scheme for solar module manufacturing. 

According to media reports, the government is also considering subsidies for consumers of green hydrogen. It could offer a Rs 30-50 ($0.37-0.61) per kilogram subsidy to industrial consumers of green hydrogen. This will incentivize industries like iron & steel, fertilizers, and refining to replace current sources of hydrogen with electrolyzer-based green hydrogen. The government is also expected to introduce a green hydrogen consumption obligation for industrial users in the near future. 

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Former Tesla Battery Expert Leading Lyten Into New Lithium-Sulfur Battery Era — Podcast:

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Written By

An avid follower of latest developments in the Indian renewable energy sector.


You May Also Like

Clean Transport

For a dozen or so years, Gladstein, Neandross & Associates (GNA) have been putting on the Advanced Clean Transportation, or “ACT,” Expo, fighting the...

Clean Power

New bus depot in Maryland blows up the Internet with solar powered green hydrogen production on site.

Green Economy

Some of the leading global pension funds are vying for a stake in the latest renewable energy yieldco offering in India. According to media...

Clean Power

As Liebreich says, it will take until 2030 for the hype to die down, because that's how long it takes to deprogram a cult. 

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.