Highlights
- EWI report commissioned by E.ON and Thüga identifies locations in Germany where electrolyzers can support the energy system
- Thanks to system-friendly eletrolyzers, curtailments could be avoided at all levels of the electricity grid and the hydrogen ramp-up could be fostered
- The proximity to renewable energies and a good consumer structure favor the system-friendly placement of electrolyzers
Electrolyzers can relieve pressure on all levels of the electricity grid. Their placement in many different regions of Germany has benefits for the entire energy system. This is shown by a report carried out by the Institute of Energy Economics at the University of Cologne (EWI) on behalf of E.ON and the Thüga Group. The EWI used various criteria to investigate which locations would be suitable for the construction of electrolyzers. The central aspects were the questions of how the demand for hydrogen can best be met in the future and how electrolyzers can create more flexibility for the energy system.
The report looked at three different size classes of electrolyzers: smaller than 10 megawatts, 10 to 50 megawatts, and larger than 50 megawatts. According to the report, electrolyzers with a capacity of less than 10 megawatts can have a system-supporting effect by 2030, particularly in regions that have both a high demand for hydrogen and a high regional potential for renewable energies. These include the Dithmarschen region in Schleswig-Holstein, Germany and the central German chemical triangle. More powerful electrolyzers could preferably be built in regions in northern Germany as well as in the Ruhr and Rhineland area so that they are well connected to the future hydrogen infrastructure.
A clear development can be seen in the scenarios for the year 2040 due to the further increase in demand for hydrogen and the expansion of hydrogen networks. By then, many more regions will be well or very well suited for the system-supporting use of electrolyzers. According to the report, the best locations for electrolyzers in the power class below 10 megawatts are in northern Germany, the central German chemical triangle, and the Rhineland. There will also be suitable sites in southern Germany. The greater the capacity of the electrolyzer, the more precisely system-compatible sites need to be selected. This is because the larger the electrolyzer, the greater the requirements for connection and placement. Therefore, when creating incentives for the system-friendly use of electrolyzers, no region should be excluded from the outset. This is important for fundings, for example.
As the report shows, electrolyzers can be particularly beneficial to the system where many renewable energy plants are connected to the distribution grids. The accelerated expansion of renewable energies (RE) is already today leading to delays in the connection of individual plants. If regionally generated renewable electricity is used for electrolysis, the power grid can be relieved, the flexibility of the system increased, and curtailments avoided. Electrolyzers could help prevent bottlenecks at all levels of the electricity grid and thus reduce system costs. The report also makes it clear that the connection to a future hydrogen grid for the transportation of hydrogen to consumers and the regional demand for hydrogen play a decisive role.
Taking location into consideration could benefit the overall system, but there has been little evidence so far that planned projects are doing so. This becomes apparent when compared with the results of the "H2-Bilanz" (H2 balance), which is also based on data from the EWI. This could be changed by funding according to a few criteria that take into account the overall system and the needs of the various sectors.
Gabriël Clemens, Managing Director of E.ON Hydrogen, says: "The report shows that electrolyzers at many different locations in Germany can make a helpful contribution to the success of the energy transition. This is because they link the sectors and create flexibility in the entire energy system. The findings of the report will help us to provide our customers with the best possible advice based on scientifically collected data if they want to switch to hydrogen."
"In addition to electrons, green molecules must also be used to decarbonize the energy system if we want to achieve the climate targets. The local conversion of renewable energies not only serves to supply industry and commerce with green hydrogen, but also helps to relieve the strain on the electricity grids. The system-friendly use of electrolyzers increases security of supply, reduces the economic costs of decarbonization and contributes to regional value creation and location security," says Christoph Ullmer, Head of the Innovation Competence Center at Thüga AG.
The EWI used various criteria for the site assessment: The regional potential of renewable energies, the frequency of regional redispatch measures, the extra-high voltage grid in the region, the hydrogen transportation grid, the regional planned hydrogen distribution grid, potential hydrogen storage facilities, hydrogen demand, power plant locations, and land availability. These criteria were weighted differently and finally an overall assessment of the regions was carried out.
You can find more information on the report here:
https://www.eon.com/en/about-us/politics/german-energy-policy/study-electrolyzers.html
About Thüga
Munich-based Thüga Aktiengesellschaft (Thüga) is an investment and specialist consulting company with municipal roots. As a minority shareholder, it holds stakes in around 100 municipal energy and water companies throughout Germany. Together with its partners, Thüga forms the largest municipal association of local and regional energy and water supply companies in Germany the Thüga Group. Together, the Thüga partners and their more than 22,000 employees supply almost five million customers nationwide with electricity, two million customers with natural gas and one million customers with drinking water. In 2022, they generated a turnover of around 44 billion euros. www.thuega.de
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