For the development of a German hydrogen core grid, the investment volume of grid operators must increase significantly in the coming years. However, in order to encourage private investments, the risk-return profile must promise a higher return or have fewer risks compared to alternative investment opportunities. Regulatory factors play a particularly prominent role in the area of energy grids.
Due to the novelty of hydrogen grids, it can be assumed that the investment risk will increase in comparison to investments in existing network infrastructure. The reasons for this include increased volume risks and regulatory uncertainty. Conversely, hydrogen grids must therefore be regulated separately in order to incentivize sufficient investment. Against the backdrop of current political plans, the impulse paper analyzes what such regulation could look like and works out the effects of various design parameters on the capital market.
