Joint ESRI-ESB Seminar by Fabio Bozzolo
Title - Energy policies and the hydrogen industry development: an energy system approach to the additionality rules and other policy mechanisms
"Renewable hydrogen has been proposed as a key enabler of a fully decarbonised energy sector. However, current legislation has hindered the development of this new industry by imposing strict rules over the production of hydrogen in several jurisdictions. These rules are deemed necessary to ensure that hydrogen production complies with the environmental standards at the moment of production. In this study, we modelled the Irish energy system transition year of 2035 to evaluate the effectiveness of different policy arrangements in decarbonisation, security of supply and affordability with a minimum cost modelling approach. This work shows that if renewable electricity is developed at an increased rate in the next 10 years, the hydrogen production rules set by current legislation are a suboptimal policy to deliver a decarbonised, secure and affordable energy system. Replacing those rules with an increased carbon price delivers the optimal cost and benefits balance."