Hydrogen trade association welcomes market intervention to support deployment of hydrogen-to-power

Celia Greaves, CEO of The Hydrogen Energy Association spoke after the release of the 'Hydrogen to Power: Market Intervention Consultation Response' which saw the government make the pledge in order to deliver on the Prime Minister’s clean energy superpower mission.

She said: “This is a welcome step in unlocking the immense potential of hydrogen as a cornerstone of Britain’s clean energy future. H2P offers a unique solution to some of the most pressing challenges in the energy transition. Its ability to deliver low-carbon, dispatchable power Is not only a critical enabler for integrating renewables into a balanced, secure, and reliable energy system, but also provides a path for replacing unabated gas. The strategic vision outlined, combined with the planned introduction of a business model, is precisely the kind of forward-thinking policy needed to address the barriers identified in the consultation: investment uncertainty and the nascent state of enabling hydrogen infrastructure. Enabling H2P participation into the capacity market (CM) is a valuable additional measure.”

The response followed consultation with industry and will see a business model based on a Dispatchable Power Agreement mechanism to support the deployment of H2P and will publish a market engagement document in Spring 2025 outlining further detail on the proposed design.

In addition, the government is set to establish the H2P Expert Working Group.

Celia said: “As we move towards Spring 2025 and beyond, the Hydrogen Energy Association looks forward to engaging with government and industry stakeholders to shape a business model that balances innovation, risk-sharing, and efficiency. This effort will be pivotal in enabling hydrogen to realise its potential as a transformative energy vector, supporting a cleaner, more sustainable, and more secure energy system for the UK.”

Read the article online at: https://www.globalhydrogenreview.com/hydrogen/09122024/hydrogen-trade-association-welcomes-market-intervention-to-support-deployment-of-hydrogen-to-power/