From Policy to Practice. Upper Bound Cost Estimates of Europes Green Hydrogen Ambitions

E. Hordvei, S. Hummelen, M. Petersen, S. Backe and P. Granado

Papers from arXiv.org

Abstract: As the European countries strive to meet their ambitious climate goals, renewable hydrogen has emerged to aid in decarbonizing energy-intensive sectors and support the overall energy transition. To ensure that hydrogen production aligns with these goals, the European Commission has introduced criteria for additionality, temporal correlation, and geographical correlation. These criteria are designed to ensure that hydrogen production from renewable sources supports the growth of renewable energy. This study assesses the impact of these criteria on green hydrogen production, focusing on production costs and technology impacts. The European energy market is simulated up to 2048 using stochastic programming, applying these requirements exclusively to green hydrogen production without the phased-in compliance period outlined in the EU regulations. The findings show that meeting the criteria will increase expected system costs by 82 EUR billion from 2024 to 2048, largely due to the rapid shift from fossil fuels to renewable energy. The additionality requirement, which mandates the use of new renewable energy installations for electrolysis, proves to be the most expensive, but also the most effective in accelerating renewable energy adoption.

Date: 2025-02, Revised 2025-03
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/2502.10859 Latest version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2502.10859

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().