Germany's Hydrogen Transition: Power Plant Safety Act Consultation
Key Ideas
- The German Ministry plans to implement the Power Plant Safety Act to transition to hydrogen-based power plants, aiming to convert existing gas-fired plants to operate on 100% hydrogen.
- Consultation documents outline tenders for a total of 11 GW capacity, including hydrogen-ready gas-fired plants, retrofitting old plants to use hydrogen, hydrogen-only power plants, and electricity storage systems.
- The strategy aims to reduce CO2 emissions, boost the hydrogen economy, and achieve a fully decarbonised electricity system while ensuring electricity supply security through flexible and stable plant operations.
- The European Commission approved the scheme in June 2024, with subsidies to cover investment costs and operational cost differences between hydrogen and natural gas for 800 full-load hours per year.
The German Ministry for Economic Affairs and Climate Action has released consultation documents presenting plans to introduce a Power Plant Safety Act (KWSG) to transition the country's power plants towards hydrogen utilization. The consultation, open until October 23, 2024, seeks public feedback to finalize the political and legal aspects of the strategy. The first document details tenders for 5 GW of hydrogen-ready gas-fired plants and 2 GW for converting old gas-fired power plants to run on hydrogen, with a goal of achieving 100% hydrogen operation. It also proposes tenders for 0.5 GW of hydrogen-only power plants and 0.5 GW for long-term electricity storage systems.
The primary objective of this decarbonization effort is to reduce CO2 emissions, promote the hydrogen economy, and switch to a fully decarbonized electricity system. The second document focuses on tenders for an additional 5 GW of power plant capacity to ensure stable electricity supply with flexible operations. The planned tenders, expected to commence by late 2024 or early 2025, will provide subsidies to cover investment costs and the operational cost gap between hydrogen and natural gas for 800 full-load hours annually. Projects are anticipated to be predominantly established in southern Germany and are scheduled to transition fully to hydrogen within 8 years. The European Commission granted approval for the scheme in June 2024, supporting Germany's efforts towards hydrogen-based energy transition.