Regulatory (mis)incentives in green hydrogen production.

There is little incentive to couple an electrolyzer project directly with the addition of PV capacity, as various regulations can reduce the price of electricity for electrolyzers to almost the wholesale price. The almost complete exemption from regulatory price components generally makes self-consumption of a coupled PV system economically unattractive for electrolysis, as there is little savings in electricity price components offset by higher compensation risks for self-consumption. Therefore, current regulation does not incentivize parallel additions of PV capacity. Whether this is desirable or central coordination of PV expansion is more efficient from an economic perspective needs to be evaluated.

Type of Publication: Policy Brief
Written by: Dr. Eren Çam, Samir Jeddi, Niklas Schoch
Date: March 2022
Type of Publication: Policy Brief
Written by: Dr. Eren Çam, Samir Jeddi, Niklas Schoch
Date: March 2022