Germany's Federal Network Agency has taken a decisive step towards the establishment of the country's hydrogen core network by issuing a key determination on its financing, ushering in a new era for climate-friendly energy infrastructure.
The hydrogen core network, slated to revolutionize Germany's energy landscape, comes with significant associated costs but promises to create a vital foundation for sustainable energy transition.
Primarily driven by private sector investment and financed through grid charges, the network aims to facilitate the gradual transition towards hydrogen-based energy solutions, initially with modest demand projections.
Klaus Muller, President of the Federal Network Agency, underscored the importance of the regulatory framework in enabling private sector participation while ensuring affordability for consumers:
“Network operators and investors now have a reliable regulatory framework that enables them to finance the core network on a private-sector basis. At the same time, customers can rely on the fact that there will be a nationwide uniform and affordable ramp-up fee. The ball for the start of the hydrogen economy is now in the court of the network operators.”
Under the regulatory framework outlined in the “WANDA specification,” the development and operation of the hydrogen core network will be financed through network fees until 2055, with fees to be imposed at all entry and exit points starting from 2025.
WANDA, the inaugural determination issued by the new Energy Grand Decision-making Chamber, signals a proactive response to European Court of Justice rulings mandating independent regulatory oversight in grid regulation.
Looking ahead, network operators are poised to apply for approval of the hydrogen core network, with expectations set for mid-year submissions. WANDA is slated for implementation starting January 1, 2025, laying the groundwork for a pivotal transition towards hydrogen-based energy solutions.
