A NSW Government website

Green hydrogen electricity concessions

Reducing the cost of producing green hydrogen in NSW 

Green hydrogen electricity concessions for producers

If you produce or plan to produce green hydrogen, you can apply for a range of concessions to lower your electricity costs. Electricity is currently the largest cost input for hydrogen production. By taking advantage of these concessions, you can produce green hydrogen at a lower cost and be more competitive with incumbent fuels.  

These concessions are a key commitment under the NSW Hydrogen Strategy to create a commercial green hydrogen industry in NSW and accelerate uptake across transport, industry, and energy. 

Read the application process for green hydrogen concessions paper to learn more. 

Available concessions

There are 2 groups of concessions available for green hydrogen producers: 

  1. exemptions for schemes levied on electricity consumers 
  2. discounts on charges for electricity network services. 

You can apply for multiple concessions at one time through our single application form.  You can apply for the concessions and receive approval confirmation during project development to help inform a final investment decision. 

Exemption 

Discount 

Timeframe 

Legislation 

Electricity Infrastructure Roadmap 

30 - 90% 

10 years from the date the network connection is energised 

Clause 37 of the Electricity Infrastructure Investment Regulation 2022 

Climate Change Fund 

100% 

Until 31 December 2042 

Section 34N of the Energy Utilities and Administration Act 1987 

Energy Savings Scheme 

90% 

Until 31 December 2042 

Clause 93 of Schedule 4A to the Electricity Supply Act 1995 

Peak Demand Reduction Scheme 

90% 

Until 31 December 2042 

Clause 22 of Schedule 4A to the Electricity Supply Act 1995 

Network charges: 

  • transmission customer – charges for transmission use of system services and common transmission services 

  • distribution customer – charges for standard control services and designated pricing proposal services. 

90% 

12 years from the date the network connection (or approved metering arrangement) is energised. You must start producing green hydrogen before 1 January 2031. 

Section 192 of the Electricity Supply Act 1995 and Part 7B of the Electricity Supply (General) Regulation 2014.  

 

Green hydrogen

To be eligible for concessions, you must produce green hydrogen from renewable energy. This means that at least once every financial year, you must verify under the National GreenPower Accreditation Program that you have surrendered renewable energy certificates equivalent to your total electricity consumption (in megawatt hours) used for hydrogen production. 

More information

Before you apply read the application process for green hydrogen concessions paper for full details, including:  

  • available concessions 
  • eligibility requirements  
  • application and approval process 
  • evidence green hydrogen producers must provide. 

If you have questions about the concessions, please email us at [email protected]

How to apply

To apply for our green hydrogen concessions, please complete our application form.