India aims to be the cheapest hydrogen producer in the world, so it has extended a waiver of transmission fees for renewable power to hydrogen production facilities that are commissioned before January 2031, a government official said. The action is anticipated to reduce the price of green hydrogen, which is created by splitting water with power generated from renewable sources, by a fifth.
The source, who declined to be named because he was not authorised to speak to the media, the change will allow more green hydrogen production projects to be eligible for the 25-year remission of transmission rates, which was previously available for facilities set up before July 2025. According to the government official, it was unlikely that many large-scale hydrogen and ammonia projects would
be completed by June 2025 because they require three to four years to build. The nation wants to create green hydrogen for the lowest price in the world $1–$1.50 per kilogramme, down from the current pricing of USD4–$5. By 2030, Reliance Industries and Adani Enteprises want their costs to be $ 1 per kg.
Other well-known Indian businesses that have made plans to produce green hydrogen include Larsen & Toubro, Indian Oil, NTPC, JSW Energy, ReNew Power, and Acme Solar. According to estimates from the industry, the cost of manufacturing green hydrogen ranges from 65% to 70% renewable energy, including transmission. For transmitted unit of power, interstate transmission costs range from 1-2 rupees. Green hydrogen costs 60 Indian rupees (USD0.73) less for every rupee that renewable energy costs decrease, according to the official. An email requesting comments was not immediately answered by the minister of new and renewable energy.
By 2030, 125 gigawatts of non-fossil-based production capacity and new transmission lines are expected to be needed for India's hydrogen mission, which is predicted to cost 8 trillion Indian rupees (USD98 billion) in investments. India also intends to provide incentives to green hydrogen producers worth at least 10% of their costs as part of a USD 2 billion programme that will start before the end of June. Electricity and Renewable Energy Minister R K Singh, the nation opposes broadening the concept of "green hydrogen" to include fuel derived from low-carbon energy sources as several wealthy nations have suggested in G20 meetings.
