Bundesnetzagentur consults on ramp-up tariff for hydrogen core network
Year of issue 2025
Date of issue 2025.03.26
The Bundesnetzagentur has today put out its draft determination for consultation on a ramp-up tariff for the hydrogen core network as well as a key elements paper for a differentiated tariff system.
"The ramp-up tariff is a further step towards a successful hydrogen economy. Our proposal secures use of the hydrogen core network at a fair price. At the same time we are ensuring solid reciprocal financing through private sources for the construction and operation of hydrogen networks,"
said Klaus Müller, President of the Bundesnetzagentur.
Setting the ramp-up tariff
The ramp-up tariff is a uniform tariff throughout Germany to be applied at all entry and exit points of the hydrogen core network until the year 2055. The tariff must fully offset the costs incurred during the ramp-up phase by 2055 and it must be marketable.
At €25/kWh/h/a the Bundesnetzagentur has put a tariff out for consultation that meets both criteria. The Bundesnetzagentur’s decision is based on the expertise of a scientific opinion.
The determination builds on the WANDA determination that was adopted in June 2024, establishing an intertemporal cost allocation mechanism for the hydrogen core network. The mechanism aims to compensate for the imbalance between the initially low demand for hydrogen transport capacity and the initially high costs of infrastructure development. Prohibitively high tariffs are to be avoided. Setting a stable ramp-up tariff over the years leads to shortfalls in revenue in the initial phase. However, the ramp-up tariff is intended to later lead to revenue beyond the annual costs, thus generating additional revenue. The initial shortfalls are entered in a cost allocation account so that they can later be offset by the additional revenue.
The tariff will be adjusted annually to be in line with general inflation. Every three years the Bundesnetzagentur will examine whether or not the tariff is still suitable for offsetting the cost allocation account. If it is not, the Bundesnetzagentur will increase the tariff as necessary.
Key elements for differentiated tariff system
In addition, the Bundesnetzagentur has put out a key elements paper for consultation on a differentiated tariff system. The ramp-up tariff of €25/kWh/h/a applies to a firm hydrogen network capacity on an annual basis. The WaKandA determination proceedings are underway to consult on a detailed range of products, which, in addition to the introduction of monthly and daily capacity products, also provide for interruptible hydrogen network capacities. To ensure that the tariff system is suitable for these products, the Bundesnetzagentur’s key elements paper features ideas for calculation formulas for monthly and quarterly products, preferential rates for interruptible capacity products and discounts at exit points of hydrogen storage facilities.
Next steps
Responses to the consultation documents can be submitted until 2 May 2025. The draft determination and the report on which it is based have been published in German at www.bundesnetzagentur.de/1054582. The key elements paper has been published in German at www.bundesnetzagentur.de/1053974.
The Bundesnetzagentur is also planning to hold a workshop during the consultation period to discuss the issues with interested market participants.