For renewable energy projects that provide power to green hydrogen projects, the Indian government has loosened the eligibility requirements for the exemption of the transmission charge waiver.
In India, renewable energy projects that deliver energy to green hydrogen or green ammonia manufacturing facilities are exempt from paying transmission fees as long as they are operational by December 31, 2030. Previously, the 30 June 2025 commissioning date applied to these projects.
Government sources claim that the extension was granted since it typically takes 3–4 years for green hydrogen-generating plants to be put into operation. Any remission of transmission rates for projects utilising green hydrogen would have been unnecessary under the prior commissioning date.
The waiver is anticipated to have a substantial influence on the ultimate cost of producing green hydrogen and green ammonia by lowering the cost of producing renewable energy by Rs 1-2 per kilowatt-hour.
In contrast to the current price of $4–5, the Indian government plans to produce green hydrogen on a massive scale for $1–1.50 per kilogram. The administration is reportedly working on further incentives in addition to waiving transmission fees.
The government is anticipated to introduce a production-linked incentive program for the manufacture of electrolyzers. The program will follow the $3 billion subsidy plan for the production of solar modules.
The government is reportedly considering providing subsidies to green hydrogen users. It might provide industrial users of green hydrogen with a Rs 30–50 ($0.37–0.61) per kilogram subsidy. This will encourage sectors like iron and steel, fertilizers, and refining to switch to green hydrogen produced by electrolyzers in place of their present sources of hydrogen. Soon, the government is anticipated to adopt a green hydrogen consumption requirement for industrial users.
Earlier, Guidelines issued by the Ministry of Power aim to regulate and promote the development of pumped storage projects (PSP) in India. These guidelines clarify the process of allotting project sites through competitive bidding and eliminate any upfront premium for project allocation to ensure financial viability.
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Source: TOI
