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ARTICLE · 12 JUNE 2023

Waiver Of ISTS Charges For Green Hydrogen

Argus Partners
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Ministry of New and Renewable Energy ("MNRE") has issued the Memorandum on waiver of Inter-State Transmission System Charges for Green Hydrogen and its derivatives on April 5, 2023 ("2023 Memorandum")...

IndiaEnergy and Natural Resources
Rachika Agrawal Sahay
Rachika Agrawal Sahay
Mrinal Mishra
Mrinal Mishra
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Ministry of New and Renewable Energy ("MNRE") has issued the Memorandum on waiver of Inter-State Transmission System Charges for Green Hydrogen and its derivatives on April 5, 2023 ("2023 Memorandum"), in order to amend and clarify with regards green hydrogen, the Order No. 23/12/2016- R&R dated November 23, 2021 ("2021 Order") passed by Ministry of Power. The key changes owing to the 2023 Memorandum have been captured below:

  1. Extension of exemption to green hydrogen: Inter-state transmission charges shall not be levied on renewable energy used for production of green hydrogen and its derivates such as green ammonia. This exemption is limited for those green hydrogen units which are commissioned until December 31, 2030, which is an extension of 5 (Five) years and 6 (Six) months over the 2021 Order which only exempted units commissioned until June 30, 2025.

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