Germany's 13k Mechanism: A Game Changer for Green Hydrogen Production
Key Ideas
  • Germany faced 10 TWh of curtailed renewable electricity in 2023, prompting the adoption of the 13k mechanism to repurpose excess energy.
  • The 13k mechanism aims to enhance system efficiency by offering curtailed electricity to flexible consumers, potentially benefiting electrolysers over batteries.
  • The upcoming two-year trial period starting in October 2024 will determine the effectiveness of the 13k mechanism in reducing redispatch costs and boosting green hydrogen production.
  • The report delves into the implementation of the 13k mechanism, its impact on green hydrogen production, and the potential cost reductions and volume increase it could bring.
Germany is grappling with a significant issue of curtailed renewable electricity, reaching 10 TWh in 2023, which poses a challenge to the country's decarbonisation goals. To address this challenge, a new mechanism called the '13k mechanism' under §13k EnWG is set to begin a two-year trial period on 1 October 2024. This mechanism aims to repurpose curtailed electricity to flexible consumers, reducing system inefficiencies and cutting down on redispatch costs. While batteries may find the additionality criteria less appealing, electrolysers could greatly benefit from this initiative. Furthermore, a recent report has analyzed the 13k mechanism, focusing on its implementation and the future price formation, especially in the context of green hydrogen production. The report highlights the potential impact on the green hydrogen sector, foreseeing cost reductions and increased production volumes. This analysis was first presented in a webinar, the recording of which is now available for access. For those interested in staying updated on such insights, there is an option to sign up and receive the latest public insights directly via email.
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