Germany’s Federal Network Agency has issued a determination for the financing of the country’s hydrogen core network.
The hydrogen core network will create a completely new climate-friendly energy infrastructure in Germany but which is also associated with high costs.
It is to be built up in principle by the private sector and financed entirely through grid charges.
In the first few years only low demand for hydrogen is expected.
In the long term, however, the Federal Network Agency expects an established hydrogen market and a larger number of grid customers.
It therefore initially sets the network fee below a cost-covering fee in order to prevent very high fees from hindering the hydrogen ramp-up in the first years of network development.
Future grid customers will bear the construction costs of the network.
“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,” said Klaus Muller, President of the Federal Network Agency.
The development of the hydrogen core network is to be refinanced by network fees until 2055, under the regulatory framework, created by the “WANDA specification”.
The fee will be levied at all entry and exit points of the hydrogen core network from 2025.
WANDA is the first determination to be issued by the new Energy Grand Decision-making Chamber.
The establishment of this chamber was in response to a ruling by the European Court of Justice, according to which the Federal Network Agency must determine essential framework conditions for grid regulation independently of the federal government and the national legislator.
The next step is the application of the network operators for the approval of the hydrogen core network, which is expected in the middle of the year.
WANDA is to apply from 1 January 2025.
In the context of this determination, the amount of the ramp-up fee is not yet determined.