4.5 The Underpinning Policy Framework
41
generation fluctuate over time, the investment in an integrated renewable energy
and power-to-gas facility offering the ability to convert a share of the renewable
electricity in hydrogen becomes relevant (Glenk and Reichelstein 2019).
4.5
The Underpinning Policy Framework
4.5.1 The Drivers and Limitations of the Current Policy
Framework
Currently, the policies aiming at reducing GHG emissions are focusing on renewable energy generation. The policies aiming at increasing the affordability of
the energy generally exclude hydrogen technologies due to their current high
costs. Policy support for hydrogen technologies are motivated by different national priorities, whether those are the climate change, the reduction of GHG, the
energy security, affordability, and the economic growth (Staffell et al. 2019). For
instance, China’s hydrogen policy is driven by the need of reducing the pollution in its metropoles. It also aims at supporting the economic growth through
the development of hydrogen-based downstream applications (i.e. fuel cells). For
Japan, the main hydrogen policy driver is the energy security. It also aims at
supporting its national industries by focusing on the development of FCVs and
fuel cells. The EU is considering establishing renewable hydrogen standards to
support the green energy transition. Other drivers for the promotion of hydrogen
technologies in the policies are the stability brought to the electricity system, the
reduction of the environmental impacts by offsetting fossil fuel-based technologies, the development of new carbon-free technologies and markets with their
positive fallouts on the economic growth and the employment.
A global and coordinated development of an economic and a regulatory framework to support the development of the hydrogen produced by water electrolysis
is missing (Lewandowska-Bernat and Desideri 2017; Thanapalan et al. 2012).
Focused, predictable and consistent energy policy are the basis of successful
innovation (Staffell et al. 2019). Unpredictable and suddenly changing policies
undermined the confidence of the investors. The phenomenon has been observed
in Spain for instance where the radical stop of fit in tariffs for solar PV triggered a halt in the development of renewable energy in the middle of the 2000s.
This is also relevant for the development of the hydrogen technologies. The policy
mechanisms supporting the development of hydrogen technologies should be defined and communicated well in advance. That way, the hydrogen technologies
41
generation fluctuate over time, the investment in an integrated renewable energy
and power-to-gas facility offering the ability to convert a share of the renewable
electricity in hydrogen becomes relevant (Glenk and Reichelstein 2019).
4.5
The Underpinning Policy Framework
4.5.1 The Drivers and Limitations of the Current Policy
Framework
Currently, the policies aiming at reducing GHG emissions are focusing on renewable energy generation. The policies aiming at increasing the affordability of
the energy generally exclude hydrogen technologies due to their current high
costs. Policy support for hydrogen technologies are motivated by different national priorities, whether those are the climate change, the reduction of GHG, the
energy security, affordability, and the economic growth (Staffell et al. 2019). For
instance, China’s hydrogen policy is driven by the need of reducing the pollution in its metropoles. It also aims at supporting the economic growth through
the development of hydrogen-based downstream applications (i.e. fuel cells). For
Japan, the main hydrogen policy driver is the energy security. It also aims at
supporting its national industries by focusing on the development of FCVs and
fuel cells. The EU is considering establishing renewable hydrogen standards to
support the green energy transition. Other drivers for the promotion of hydrogen
technologies in the policies are the stability brought to the electricity system, the
reduction of the environmental impacts by offsetting fossil fuel-based technologies, the development of new carbon-free technologies and markets with their
positive fallouts on the economic growth and the employment.
A global and coordinated development of an economic and a regulatory framework to support the development of the hydrogen produced by water electrolysis
is missing (Lewandowska-Bernat and Desideri 2017; Thanapalan et al. 2012).
Focused, predictable and consistent energy policy are the basis of successful
innovation (Staffell et al. 2019). Unpredictable and suddenly changing policies
undermined the confidence of the investors. The phenomenon has been observed
in Spain for instance where the radical stop of fit in tariffs for solar PV triggered a halt in the development of renewable energy in the middle of the 2000s.
This is also relevant for the development of the hydrogen technologies. The policy
mechanisms supporting the development of hydrogen technologies should be defined and communicated well in advance. That way, the hydrogen technologies