The Federal Grid Regulator in Germany (BNetzA) is consulting on the hydrogen balancing mechanism for hydrogen grids “WasABi” for the second time until the end of February 2025. What sounds very dry at first glance has a major impact in practice on the ramp-up of the H2 economy and on the economic viability of future ZZE projects that feed hydrogen into the German H2 core grid. Following the current consultation, we expect a decision by the BNetzA that will provide orientation and planning security for all actors involved along the H2 value chain.
In the electricity supply, there are already flexibility markets for different periods: primary and secondary control power as well as minute reserve. These markets are now very attractive, particularly due to the successful ramp-up of wind and solar energy, for example, battery storage systems that charge when electricity prices are low and provide electricity when electricity prices are high. The batteries – just like the Zinc-Zwischenschritt electrolysis (ZZE) in the future – thus make a significant contribution to the integration of renewable energies into an electricity system with a high level of supply security.
The creation of a similar system is now planned for the future H2 core network, and that is exactly what WasABi is about. The aim is for all users of the H2 core network to be incentivized according to their abilities to support the overall system and maintain H2 supply security for all users of the infrastructure around the clock.
Every 15 minutes, each balancing group records the amount of hydrogen fed in and fed out. Balancing is carried out continuously and does not have to be balanced every 15 minutes by the actors involved. The sum of all balancing groups is calculated for the entire H2 core grid. The network status is determined according to the current deviations and those expected in the coming hour as well as the pre-defined technical limits of the H2 core grid:
- Green: No activities required. All H2 producers and H2 customers can use the network without restrictions, even if their balancing group is not balanced.
- Yellow: Compensation measures are being taken to bring the entire network back into the green zone as quickly as possible. To do this, the balancing groups are first divided: on the one hand, balancing groups that support the network (“helpers”), and on the other hand, balancing groups that burden the network and have led to the jump into the yellow phase (“causers”). The “causers” must pay a compensation payment for the deviation in their balancing group, and the “helpers” are financially rewarded for their behaviour.
- Red: Immediate initiation of compensatory measures up to and including shutdown of H2 customers by network operators.
What does this mean specifically for STOFF2 customers? The ZZE produces green hydrogen and, thanks to its high flexibility, can simultaneously bid on the flexibility markets for electricity and gas. We assume that this will enable additional revenues that will significantly improve profitability for our customers. WasABi is now creating the legal framework for a flexibility market in the H2 core network, which our flexible Zinc-Zwischenschritt electrolysis can perfectly serve. This means that our ZZE plants can respond particularly well to the demand of H2 users. This means that our customers’ balance sheet is balanced and there is no threat of compensation payments. In addition, the ZZE plants can effectively support the entire network as “helpers” in the yellow and red phases and thus generate attractive additional revenues beyond the pure delivery of green hydrogen.
Future called, said it’s great!
