Apply now to reduce your electricity costs
If you produce or plan to produce green hydrogen, you can apply for a range of concessions to reduce your electricity costs. Electricity is currently the largest cost input for hydrogen production.
We’re providing up to $1.5 billion in value, which represents 750 megawatts (MW) of capacity available across the state. You can get:
- up to 90% network charge discounts
- up to 100% discounts on government levies.
By taking advantage of this incentive, 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 our transport, industry, and energy sectors.
Concessions available for applications now
There are 2 groups of concessions available for green hydrogen producers:
- electricity charges 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 also apply for concessions and receive approval confirmation during your project development to help inform a final investment decision.
Electricity charges | 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. |
Eligibility
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 MW hours) used for hydrogen production.
Before you apply
Read the application process for green hydrogen concessions paper. This includes important information about:
- available concessions
- eligibility requirements
- the application and approval process
- evidence that green hydrogen producers must provide.
If you have questions about the concessions, email us at [email protected]
How to apply
Please complete our online application form.
Projects eligible for network charge discounts
674 MW are still available for application out of the total 750 MW. To date, the Minister for Energy has approved the following projects as eligible for the 90% discount on network charges.
| Project | Electrical demand |
| Hunter Valley Hydrogen Hub | 66 MW |
| Hydrogen Park Wagga Wagga | 10 MW |
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