Additionality and hourly correlation rules for electrolysers could cost Central West Europe (CWE) $2.1bn per year, according to a new Hydrogen Council report.
The Hydrogen in Decarbonized Energy Systems report said mandates for electrolysers contracted only with newly built renewable assets (additionality) and matching the assets’ generation profiles to the hour or less (temporal correlation), can reduce system flexibility.
“This type of market distortion aimed at restricting electrolyser generation can reduce system flexibility by removing some of the freedom electrolysers have to respond to prices and reducing the pool of renewable assets they can contract with,” the report read.
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