India to waive transmission costs for green hydrogen manufacturers

India will allow companies that manufacture green hydrogen to install renewable energy generating plants without transmission costs, the country's power minister said on Wednesday.
"Green hydrogen manufacturers can set up renewable energy capacity by themselves. We will give them free transmission until 2025 and banking for 30 days," Power Minister R.K. Singh said.

Banking allows renewable energy producers to transmit unused electricity to the grid, which can subsequently be used whenever needed, he said, adding that transmission charges would be waived for companies setting up manufacturing facilities before 2025.

More details on incentives for green hydrogen manufacturing will be made public on Thursday when India releases the first part of its national hydrogen policy, Singh said.

India will soon release guidelines on industrial use of green hydrogen and ammonia, he said, without specifying when.

Singh said in September that India planned to provide federal financial support for the setting up of electrolysers as it wants to make the use of green hydrogen mandatory for refineries and fertiliser plants.

Green hydrogen, produced using renewable energy, has the best environmental credentials of the various shades of the clean-burning fuel, which can also be produced using fossil fuel as the energy source to electrolyse water.