A successful ramp-up of the hydrogen economy must create H2 security of supply – but how exactly?
The use of hydrogen is not just a trend but a crucial tool in the implementation of national CO2 reduction targets and the fulfilment of European and international climate protection agreements. This recognition by politicians is a significant step. The revised national hydrogen strategy in the summer of 2023 and the agreement on the H2 core network laid the foundation for transforming the gas supply in collaboration with the gas industry. In addition, the law on municipal heat planning passed by the Bundestag at the end of 2023 and the gas network area transformation plans (GTP) initiated by the gas industry form the first essential basis for planning security for all players along the energy supply value chain.
At the same time, it is still unclear how H2 security of supply will be organised on a market basis in the emerging H2 network. The landscape of actors is diverse: On the one hand, there are H2 producers who provide green H2 from fluctuating wind and PV power, and in the future, H2 producers of blue hydrogen, for example, in Norway. On the other hand, there are H2 customers with relatively constant demand, such as industry and commerce, those with seasonally fluctuating demand, such as heat customers, and customers with high H2 demand precisely when the wind is not blowing and the sun is not shining, such as H2 backup power plants. In addition, depending on requirements and with different lead times, investments can be made in other storage technologies – from decentralised energy storage to H2 caverns.
For the future H2 market design, we propose a non-discriminatory market environment that allows all technically available solutions to make their best possible contribution to H2 supply security. This approach, called the 3-stage model, ensures fairness and effectiveness in the upcoming H2 market.
| Level | 1 „Foundation of the market“ | 2 „Market ramp-up“ | 3 „Liquid market “ |
| 1 supplier | 2 to X suppliers / customers | >X suppliers / customers | |
| H2 Supply | Contract between H2 supplier and H2 customer, hourly balancing | Contract between H2 supplier and H2 customer, 6h balancing | |
| H2 Balancing Market | Tender of H2 grid operator to balance H2 supply and H2 demand on an hourly basis * | ||
| H2 Network Services | H2 grid operator tenders first H2 filling of the H2 gas grid | H2 grid operator tenders’ services to stabilise pressure within the grid* | |
With this first approach, we invite all interested stakeholders and interest groups to develop our idea further or to bring alternative ideas into the specialist discussion that is now beginning. How can we best use the flexibility potential of H2 suppliers, H2 storage facilities and H2 customers? What can we learn from the rules of the electricity and natural gas market? How do we deal with the initially low liquidity in the future H2 flexibility market? All this needs to be clarified together; we look forward to the debate.
