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Incentive structures for power-to-X and e-fuel pathways for transport in EU and member states

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  • Skov, Iva Ridjan
  • Schneider, Noémi

Abstract

Though Power-to-X pathways, primarily Power-to-Liquids, attract interest as solutions for decarbonising parts of the transport sector that are not suitable for electrification, the regulatory framework until recently slowed down their implementation. This paper examines the updates in the main aspects of the legal framework in the European Union from 2019 to the beginning of 2022 related to Power-to-X: support schemes, specific targets, and potential barriers. The results show increasing interest and market entrance of electrolysis and push from the different actors and regulatory parties to establish solutions that will enable faster upscaling. However, it is visible from the National Energy and Climate Plans and hydrogen strategies that the most emphasis is still on hydrogen as an end fuel for personal vehicles or power-to-gas. On the other hand, few countries have implemented legal frameworks facilitating diverse PtX pathways without focusing solely on hydrogen. Nevertheless, revisions of RED II have finally set up specific targets for electrofuels and Fit for 55 has introduced new actions supporting electrofuels in aviation and marine transport.

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  • Skov, Iva Ridjan & Schneider, Noémi, 2022. "Incentive structures for power-to-X and e-fuel pathways for transport in EU and member states," Energy Policy, Elsevier, vol. 168(C).
    • Handle: RePEc:eee:enepol:v:168:y:2022:i:c:s0301421522003469
    DOI: 10.1016/j.enpol.2022.113121
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