Federal Network Agency consults on ramp-up fee for hydrogen core network – €25/kWh/h/a
The Federal Network Agency today published for consultation the draft of its determination of the ramp-up fee for the hydrogen core network as well as a key issues paper for a differentiated fee system.
Klaus Müller , President of the Federal Network Agency, says:
The ramp-up fee is a further step towards a successful hydrogen economy. With our proposal, we ensure the use of the hydrogen core network at a reasonable price.
“At the same time, we guarantee solid counter-financing for the construction and operation of the hydrogen networks from private funds”
Determination of the ramp-up fee
The ramp-up fee is a nationwide uniform fee that will apply at all entry and exit points of the hydrogen core network until 2055. It must fully finance the costs incurred during the ramp-up phase until 2055. It must also be marketable.
At €25/kWh/h/a, the Federal Network Agency is putting forward a fee for consultation that meets both criteria. Its decision is based, among other things, on the expertise of a scientific report.
The determination builds on the WANDA decision issued in June 2024, which establishes an intertemporal cost allocation mechanism for the hydrogen core network. The mechanism is intended to balance the imbalance between the initially low demand for hydrogen transport capacity and the initially high costs of infrastructure construction. Prohibitively high fees are intended to prevent prohibitively high fees. Setting a ramp-up fee that remains constant over the years will result in lower revenues in the initial phase. Later, however, the ramp-up fee is intended to generate revenues that exceed the annual costs, thus generating additional revenues. The initial lower revenues are recorded in a cost allocation account so that they can be offset later by the additional revenues.
The fee is adjusted annually to reflect general monetary trends. The Federal Network Agency reviews every three years whether the fee is still suitable for balancing the cost allocation account. If this is not the case, it will adjust the ramp-up fee.
Key points for a differentiated remuneration system
In addition, the Federal Network Agency has put a key issues paper for a differentiated tariff system out for consultation. The ramp-up fee of €25/kWh/h/a applies to fixed hydrogen capacity on an annual basis. A detailed product range is currently being consulted under the WaKandA procedure, which, in addition to the introduction of monthly and daily capacity products, also provides for interruptible hydrogen capacities. To ensure that the tariff system does justice to these products, the Federal Network Agency presents ideas in its key issues paper for the design of multipliers for products with a term of less than one year, discounts for interruptible capacity products, and discounts at exit points at hydrogen storage facilities.
Further procedure
Comments on the consulted documents can be submitted until May 2, 2025. The draft determination and the underlying expert opinion are published at www.bundesnetzagentur.de/1054582 . The key issues paper is published at www.bundesnetzagentur.de/1053974 .
The Federal Network Agency also plans to hold a workshop during the consultation period in which the topics will be discussed with interested market participants.
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Federal Network Agency consults on ramp-up fee for hydrogen core network – €25/kWh/h/a, source
