Using Instead of Curtailing – The Grid Package must factor in hydrogen

Commenting on today's decision by the Federal Cabinet on the Grid Package, Dr. Timm Kehler, CEO of Die Gas- und Wasserstoffwirtschaft, states:

"The Grid Package addresses a real problem: the expansion of renewable energy and of the power grids must be closely interlinked. Grid expansion is the central lever, but it must not be seen as the only solution. Electrolysers are a crucial building block here, as they generate hydrogen from renewable electricity whenever it isn't being consumed. This makes it possible to store large volumes of electricity over long periods. The permits already granted for wind energy installations of more than 20 GW in northern and western Germany in 2025 alone will pose major challenges for the power grid. The solution quite literally lies beneath our feet: these volumes of electricity can sensibly be channelled into the gas grid, since it is precisely in the north and west that a dense gas network, large storage facilities and industrial offtake come together so effectively.

From an economic standpoint, it is more efficient to store surplus electricity in the form of hydrogen than to curtail it. This creates industrial value creation for electrolysers, wind power, control technology and steel construction in Germany and Europe. Overall, the "Grid Package" should therefore be understood more as a "Flexibility Package." Only if electrolysers, hydrogen storage and the future hydrogen infrastructure are planned together from the outset can redispatch costs be limited and grids be relieved. The right guiding principle is: using instead of curtailing. Electricity that would otherwise be lost can become hydrogen – contributing not only to security of supply and grid stability, but also to climate protection and a resilient energy system."