BMWK and EU Commission Advance Hydrogen Power Plant Strategy

Framework and Progress

The German Federal Ministry of Economics and Climate Protection (BMWK) and the European Commission have made significant progress on three measures for hydrogen power plants. This progress forms the basis for BMWK's national power plant strategy. While the measures are not yet approved under State aid rules, a common understanding has been reached, setting the framework for future steps.

Consultation Phase

The next step involves a consultation phase starting at the end of summer. This phase aims to gather input from stakeholders, including associations, power plant manufacturers and operators, renewable hydrogen users, and other market players. The focus will be on assessing the impact on competition and the necessity, eligibility, and proportionality of the measures.

Key Figures and Timelines

BMWK plans to tender 8.8 gigawatts (GW) of new hydrogen power plants and up to 15 GW of hydrogen power plants that can temporarily run on natural gas until they are connected to the hydrogen grid by 2035. Of these, 10 GW will be tendered by 2026, followed by an evaluation before tendering the remaining 5 GW.

Hydrogen Power Plant Types

The strategy includes Hydrogen Sprinter Power Plants, with 4.4 GW planned for tender from 2024 to 2028, and Hydrogen Hybrid Power Plants, also with a 4.4 GW tender volume. Additionally, H2-ready power plants, which initially run on natural gas and must switch to hydrogen by 2035, will address 15 GW of capacity, with 10 GW tendered between 2024 and 2026.

Future Steps

The progress with the European Commission includes central components and framework conditions for future measures. The new draft measures will be published at the end of the parliamentary summer recess and will undergo public consultation to finalize the details.