GREEN ELECTRICITY AND HYDROGEN FOR A COMPETITIVE, RESILIENT AND CLEAN EUROPEAN ENERGY SYSTEM

To establish a European competitive, resilient and clean energy system by 2050, it is crucial to unlock the expansion of renewable energy, electricity grids and hydrogen infrastructure across Europe and to unlock synergies between the electricity and hydrogen sectors. In this joint paper, we describe how this requires new ways of designing and operating our energy system, and outline recommendations on how to effectively achieve this.

Unlock the expansion of renewable energy, electricity grids and hydrogen infrastructure across Europe

Europe’s renewable electricity generation needs to grow by a factor of 4-5 by 2050. To make efficient use of the electricity produced from renewable energy sources, Europe’s final energy demand needs to be electrified as much as possible. However, electrification alone is not sufficient as it is neither technically nor economically feasible to electrify all sectors. Therefore, green electrons must be supplemented by green molecules. An expansion of both electricity grids and hydrogen infrastructure is needed to ransport electrons and molecules across Europe in a cost-efficient manner.

Unlock synergies between the electricity and hydrogen sectors

This includes enhancing sector coupling between renewable energy sources and hydrogen production in regions with a structural surplus of renewable energy, making better use of the renewable energy potential in Europe while reducing the need for electrical grid expansion. This can also include offshore hydrogen production based on offshore wind resources, which can in some cases be a cost-competitive alternative to onshore hydrogen production. Additionally, enabling a flexible operation of electrolysers to adjust production in line with the fluctuation of electricity prices and regional renewable electricity generation will result in more cost-competitive hydrogen production and a higher utilisation of renewable generation assets.

Recommendations

• This paper recommends that in order to establish a competitive, resilient and clean energy system in Europe by 2050, it is essential to mobilise more private investment to realise the necessary buildout of renewable energy generation and transport infrastructure.
• Moreover, to unlock synergies between the electricity and hydrogen sectors, a smarter regulatory framework which promotes a system-friendly location and flexible operation of electrolysers for green hydrogen production is needed.
• This also includes the close alignment of planning processes for electricity grids and hydrogen infrastructure at the European level, within each Member State, as well as per sea basin, based on a joint vision for the future energy system.

More in the white paper by CIP, Elia and Gascade: