Which support instruments can be used to promote green hydrogen? - Lessons learned from renewable electricity support schemes
Abstract
Green hydrogen deployment is important to reach a deeply decarbonised energy system. To bridge the price gaps between renewable (green) hydrogen and fossil-based hydrogen, support instruments for green hydrogen supply are needed. Referring to renewable electricity (RES-E) support schemes due to their positive outcomes and similar policy objectives, this paper proposes four support instruments, namely feed-in (feed-in tariff and feed-in premium), investment-based, and quota-based schemes. Additionally, the required framework conditions, the potential risks and implications and the importance of design elements are discussed. These instruments are evaluated based on four selected criteria (effectiveness, static efficiency, dynamic efficiency, and actor diversity). The assessment shows that feed-in schemes are generally expected to perform well, of which the feed-in tariff has higher effectiveness and the feed-in premium is more static efficient. The performance of an investment-based scheme depends on its implemented regions.
