Hydrogen to Power: Consultation on the Need, and Design, for a Hydrogen to Power Market Intervention

Overview

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.