Federal Network Agency Proposes Ramp-up Fee for Hydrogen Core Network to Boost Hydrogen Economy
Key Ideas
  • The Federal Network Agency in Germany is proposing a ramp-up fee of €25/kWh/h/a for the hydrogen core network until 2055 to support the hydrogen economy.
  • The fee is designed to finance the costs of infrastructure construction and operation while ensuring reasonable pricing for network usage.
  • A differentiated tariff system is being considered, including various product ranges and discounts to accommodate different hydrogen capacity needs.
  • Stakeholders have the opportunity to provide feedback on the proposal until May 2, 2025, with engagement through a workshop planned by the Federal Network Agency.
The Federal Network Agency in Germany has released a draft proposal for a ramp-up fee for the hydrogen core network to further develop the country's hydrogen economy. The proposed fee of €25/kWh/h/a is set to be applicable until 2055 and aims to cover the costs incurred during the ramp-up phase. President Klaus Müller expressed that this fee structure would ensure the usage of the hydrogen core network at a reasonable price, along with providing necessary counter-financing for network construction and operation from private sources. The ramp-up fee, based on a scientific report, is part of an intertemporal cost allocation mechanism established after the WANDA decision in June 2024. This mechanism intends to address the imbalance between low initial demand for hydrogen transport capacity and high infrastructure costs. By setting a constant fee over the years, the aim is to initially have lower revenues, gradually exceeding annual costs in the future and generating additional income. The Federal Network Agency plans to adjust the fee yearly to align with monetary trends and review its suitability every three years. Additionally, a differentiated tariff system is under consideration, featuring various product options and discounts for different capacity needs. Suggestions for multipliers, discounts, and exit points are outlined in the key issues paper for consultation. Stakeholders have until May 2, 2025, to provide feedback on the proposal. The draft determination and expert opinion are available on the agency's website, with a workshop scheduled during the consultation period to engage with interested market participants.
ADVANCEH2

Our vision is to be the world's leading online platform for advancing the use of hydrogen as a critical piece needed to deliver net-zero initiatives and the promise of a clean H2 energy future.

© 2025 AdvanceH2, LLC. All rights reserved.