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To what extent can flexibility options reduce the need for hydrogen backup power plants?

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  • Brunner, Christoph
  • Misconel, Steffi
  • Hauser, Philipp
  • Möst, Dominik

Abstract

Achieving a carbon-neutral power system based on renewable energy sources is a critical step toward net-zero emissions before 2050. However, weather-dependent variability of renewable energy generation necessitates various flexibility options to balance supply and demand. In addition to storage, demand-side flexibility from sector coupling (e.g., electrification of heating, transport, and industry) plays a significant role. Yet, the need for supply-side flexibility, particularly through dispatchable hydrogen power plants, remains unclear. In this context, the article addresses the following research question: How much firm capacity from hydrogen power plants is needed to ensure security of supply in a 100% renewable power system? Using a case study for Germany based on an electricity market model-based approach, this paper analyses the impact of different flexibility options on the capacity needs of hydrogen power plants. The results indicate that at least 46 GW of hydrogen power plants are required in a scenario with strong sector coupling and demand-side flexibility. A lack of flexibility options could substantially increase this capacity requirement. The analysis concludes with the policy recommendation that Germany’s current power plant strategy is only an initial step, and more substantial market incentives are essential to ensure adequate firm capacity in a carbon-neutral energy system.

Suggested Citation

  • Brunner, Christoph & Misconel, Steffi & Hauser, Philipp & Möst, Dominik, 2025. "To what extent can flexibility options reduce the need for hydrogen backup power plants?," Energy Policy, Elsevier, vol. 201(C).
    • Handle: RePEc:eee:enepol:v:201:y:2025:i:c:s0301421525000588
    DOI: 10.1016/j.enpol.2025.114551
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    References listed on IDEAS

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    1. Anke, Carl-Philipp & Hobbie, Hannes & Schreiber, Steffi & Möst, Dominik, 2020. "Coal phase-outs and carbon prices: Interactions between EU emission trading and national carbon mitigation policies," Energy Policy, Elsevier, vol. 144(C).
    2. Guannan He & Dharik S. Mallapragada & Abhishek Bose & Clara F. Heuberger & Emre Genc{c}er, 2021. "Sector coupling via hydrogen to lower the cost of energy system decarbonization," Papers 2103.03442, arXiv.org.
    3. Scharf, Hendrik & Möst, Dominik, 2024. "Gas power — How much is needed on the road to carbon neutrality?," Energy Policy, Elsevier, vol. 187(C).
    4. Boehnke, Florian & Kramer, Hendrik & Weber, Christoph, 2025. "The value of decentral flexibility in nodal market design – A case study for Europe 2030," Energy Policy, Elsevier, vol. 196(C).
    5. Philipp Hauser & Sina Heidari & Christoph Weber & Dominik Möst, 2019. "Does Increasing Natural Gas Demand in the Power Sector Pose a Threat of Congestion to the German Gas Grid? A Model-Coupling Approach," Energies, MDPI, vol. 12(11), pages 1-22, June.
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