Govt Extends Transmission Fee Waiver For Green Hydrogen Plants: Report

India has extended a waiver of transmission fee for renewable power to hydrogen manufacturing plants commissioned before January 2031, news agency Reuters reported citing a government official.

The move is expected to cut the cost of green hydrogen by a fifth, making more green hydrogen manufacturing projects eligible for the 25-year waiver of transmission charges.

The waiver was earlier available for projects set up before July 2025, and since building large-scale hydrogen and ammonia projects takes three to four years, it was unlikely that many would have got commissioned by June 2025.

The country aims to produce green hydrogen at USD 1-1.50 per kilogram, down from the current USD 4-5 per kilogram.

Industry estimates show that renewable energy, including transmission, makes up 65-70 per cent of the cost of producing green hydrogen.

India also plans to give green hydrogen producers incentives worth at least 10 per cent of their costs under a USD 2 billion scheme set to begin before the end of June.

India's hydrogen mission is estimated to require investments worth 8 trillion Indian rupees ($98 billion) by 2030, including 125 gigawatts of non-fossil-based generation capacity and new transmission lines.