The European hydrogen market is beginning to take shape, driven by ambitious EU-wide strategies and national policies. This report marks the start of ACER’s monitoring work on this emerging sector, in line with the hydrogen and gas decarbonisation package. It takes stock of recent developments and highlights key challenges from a regulatory standpoint.
The report “European hydrogen markets” by The European Union Agency for the Cooperation of Energy Regulators concludes that the current renewable hydrogen consumption remains minimal, and while EU renewable energy and decarbonisation targets could drive the demand, uptake so far has been slow.
On the supply side, there is a significant amount of projects for electrolysers, mostly awaiting final investment decisions. However, despite an increase in the funding options and tools, the deployment of these projects faces risks due to uncertainties in demand and future renewable electricity prices.
The national regulatory frameworks are still in their early stages. Alignment with the EU regulatory framework and consistency across EU Member States is crucial for cross-border initiatives. Clarifying low-carbon hydrogen’s role is key for market development and long-term climate goals. Better forecasting and planning needed to identify realistic hydrogen infrastructure needs.
Access the report here
