A new report from Elia Group, Copenhagen Infrastructure Partners (CIP), and German gas Transmission System Operator (TSO) Gascade stresses the importance of improving the integration of electricity and hydrogen sectors to build a competitive, resilient, and clean energy system in Europe by 2050.
The joint paper, titled Green Electricity and Hydrogen for a Competitive, Resilient, and Clean European Energy System, was presented at the WindEurope conference in Copenhagen. It highlights the need to expand renewable energy generation, electricity grids, and hydrogen infrastructure while ensuring better synergies between the two sectors.
The report also emphasizes that private capital is a crucial source of funding for the infrastructure buildout required to meet these ambitious goals.
According to Stefan Kapferer, Chief Executive of 50Hertz and member of the Elia Group Steering Committee, “In future we need more private capital for the expansion of renewable energies and transport infrastructures, a flexible regulatory framework so that hydrogen production by electrolysers can be carried out in a way that is beneficial to the system and the grid and we need to align the planning processes for electricity and hydrogen networks at all levels – on European level, on national level, and also for the respective sea areas in Europe, primarily for the North Sea and Baltic Sea.”
The paper stresses that the expansion of renewable electricity generation, crucial to Europe’s energy self-sufficiency, must be complemented by the use of green hydrogen. According to the report, hydrogen will support cost-efficient transmission infrastructure and bring flexibility to the electricity grid, making a fully decarbonized energy system feasible.
Furthermore, the paper proposes the co-location of offshore wind farms with hydrogen production facilities to improve cost-competitiveness. The flexible operation of electrolysers will allow hydrogen production to better match fluctuating electricity prices and regional renewable energy availability, thereby enhancing the use of renewable resources.
To achieve these objectives, the report argues that a solid regulatory framework and innovative financing models are necessary to attract private investment. Christoph von dem Bussche, Chief Executive of Gascade, emphasized the need for greater alignment between electricity and hydrogen infrastructure, stating, “Electrons and molecules complement each other and will be crucial for an optimized energy system.”
The report also calls for a closer collaboration between TSOs and private investors. Thomas Dalsgaard, Partner at CIP, pointed out the scale of investments required, estimating that Europe will need about EUR 200 billion annually for its energy transition. “The scale of required investments is too large to be financed by TSOs and public entities alone,” Dalsgaard said. “However, there is plenty of private capital available for investment in energy infrastructure – provided the right conditions exist.”
The paper outlines several concrete steps for regulatory alignment and planning to support the growth of a sustainable energy infrastructure in Europe, with a focus on the synergies between the electricity and hydrogen sectors.
