Hydrogen-ready power plants: Optimizing pathways to a decarbonized energy system in Germany
Anas Abuzayed, Mario Liebensteiner, Niklas Hartmann
Abstract
The integration of hydrogen technologies is widely regarded as a transformative step in the energy transition. Recently, the German government unveiled a Power Plant Strategy to promote H 2 -Ready Combined-Cycle Gas Turbines (H 2 -CCGT), which are intended to initially run on natural gas and transition to green hydrogen by 2040 at the latest. This study assesses the role of H 2 -Ready power plants in a low-carbon transition and explores plausible pathways using a capacity expansion model for Germany . This topic is particularly relevant for other countries aiming to deploy a large share of renewables and considering H 2 -CCGT as a flexible backup solution to ensure system flexibility and achieve deep decarbonization. Our results indicate that H 2 -CCGT enhance system flexibility and significantly alleviate the investments need for additional flexibility and renewable generation capacity, and reduce renewable-energy curtailment by more than 35 %. Moreover, our results also demonstrate that allowing hydrogen in CCGT does not entirely reduce the need for fossil fueled power plants , as hydrogen becomes economically viable only with deep decarbonization or direct subsidies. We show that policy interventions can alter the transition pathways for achieving a decarbonized energy system . Our research challenges a prevailing narrative that financial support for hydrogen is needed to ensure a cost-efficient system decarbonization. More straightforward market-based policy instruments, such as intensified CO 2 pricing, or regulatory frameworks such as earlier mandatory hydrogen shifts in H 2 -CCGT prove more efficient at cutting emissions and costs.