Hydrogen in the European power sector – A case study on the impacts of regulatory frameworks for green hydrogen

Abstract

To ensure renewable hydrogen (H₂) production, the European Union (EU) has introduced regulatory frameworks, notably the Delegated Act (DA) on Renewable Hydrogen. These regulations aim to ensure a 70% reduction in emissions compared to steam-methane reforming by defining requirements for renewable hydrogen production, including notably criteria of additionality, as well as spatial and temporal correlation. However, concerns have arisen among stakeholders regarding the potential barriers these criteria may pose to the growth of the EU hydrogen economy. Our analysis examines the implications of these regulations, analyzing the effects of the criteria on renewable hydrogen production from a system perspective. By doing that, we can assess the interplay with hydrogen production in European non-EU countries, as well as the role of imports from third countries, while accounting for the EU objective of achieving net zero emissions by 2050. Our findings indicate that the aggregate impact of the DA on the EU hydrogen economy is rather limited, but that the regulation may induce substantial spatial shifts in hydrogen production within the EU. The more decisive factor appears to be the interaction between the DA and the availability of imports satisfying similar regulatory requirements, as different scenarios regarding potential imports lead to differing impacts of the DA on both installed electrolyzer capacities and domestic hydrogen production levels.