Consultation outcome

Hydrogen to power: market intervention need and design

From:
Department for Energy Security and Net Zero
Published
14 December 2023
Last updated
9 December 2024 — See all updates
This consultation has concluded

Read the full outcome

Hydrogen to power: government response

PDF, 406 KB, 41 pages

Detail of outcome

The government response confirms that we will introduce a market intervention to de-risk investment in hydrogen to power (H2P) and support its accelerated deployment. It also summarises the feedback we received.

The market intervention will be in the form of a Hydrogen to Power Business Model (H2PBM) based on elements of the Dispatchable Power Agreement (DPA), designed for Power CCUS, but adapted to suit the needs of H2P.

In addition, we will look to to enable H2P to participate in the current Capacity Market as soon as practical.

The response also sets out the next steps government will take in implementing the H2PBM.

Detail of feedback received

We received 44 responses from a range of stakeholders, including:

  • developers
  • trade bodies
  • research organisations

The responses received were mostly supportive of the role H2P could play in supporting a clean power system, and that a DPA-style mechanism was the most appropriate design option.

Original consultation

Summary

We're seeking feedback on proposals that market intervention could be required to support hydrogen to power to deploy, including design options.

This consultation ran from
to

Consultation description

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

Documents

Hydrogen to power: market intervention need and design

PDF, 521 KB, 54 pages

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The need for government intervention to support hydrogen to power: report

PDF, 1.15 MB, 158 pages

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Updates to this page

Published 14 December 2023
Last updated 9 December 2024 + show all updates

  1. Government response published.

  2. First published.

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