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:
- exemptions for schemes levied on electricity consumers
- 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 |
|---|---|---|---|
30 - 90% | 10 years from the date the network connection is energised | Clause 37 of the Electricity Infrastructure Investment Regulation 2021 | |
100% | Until 31 December 2042 | Section 34N of the Energy Utilities and Administration Act 1987 | |
90% | Until 31 December 2042 | Clause 93 of Schedule 4A to the Electricity Supply Act 1995 | |
90% | Until 31 December 2042 | Clause 22 of Schedule 4A to the Electricity Supply Act 1995 | |
Network charges:
| 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.
Approved applicants for network charge discounts
There are still 684 MW of concessions available for application out of the total 750 MW. So far, the Minister for Energy has approved the following applicants as eligible for discounts on network charges.
| Applicant | Electrical demand applied for |
| Origin Energy Future Fuels Pty Limited | 66 MW |
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.