POWER
The EU is unlikely to meet its 2030 target of 20mn/t of renewable hydrogen consumption, with current levels heavily reliant on fossil fuels and slow progress in renewable hydrogen uptake, while gas network planning is “increasingly consistent,” according to ACER’s 2024 Market Monitoring Report.
- Current electrolyser capacity in Europe exceeds 200MW, with 1.8 GW of electrolyser capacity expected to be commissioned by 2026.
- Projects for 60GW of capacity are awaiting FID for 2030, compared to a target of 100GW by the decade's end.
- And existing projects face uncertainty, especially due to evolving demand and hydrogen cost issues.
- But gas network planning is increasingly consistent, with national NDPs (National Development Plan) aligning better to the EU TYNDP (Ten-Year NDP) through biennial updates, consolidated plans, joint gas-electricity scenarios, and a greater focus on low-carbon integration and repurposing projects.
- ACER recommends enhancing financial support and clarity from the European Commission, creating risk management mechanisms for hydrogen demand uncertainty and advancing hydrogen certification for EU trade.
- Additionally, it suggests improving integrated network planning between gas and electricity operators.
- Acer will release the next report in 2026.
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