Hydrogen to power: market intervention need and design
We're seeking feedback on proposals that market intervention could be required to support hydrogen to power to deploy, including design options.
This consultation seeks views on government’s minded-to position that market intervention could be required to mitigate deployment barriers identified through our external analysis to accelerate deployment of hydrogen to power (H2P) and support our commitment for a decarbonised and secure power system.
We outline potential market intervention design options including our minded-to position that should a decision be made to intervene following consultation, a hydrogen to power business model (H2PBM) design based on elements of the Dispatchable Power Agreement (DPA), designed for Power CCUS, but adapted to suit the needs of H2P, would be the most suitable design option for H2P market intervention.
We also seek feedback on proposals to enable H2P to compete in the Capacity Market as soon as practical.
Alongside this consultation we have published the external analysis we commissioned on the need and design options for hydrogen to power market intervention.
We welcome views from a range of stakeholders including:
- energy industry
- hydrogen industry
- non-governmental organisations (NGOs)
- consumer groups
- academics
- policy think-tanks