|
Hydrogen infrastructure: Could the Austrian gas industry’s concept serve as a blueprint for the European de-risking debate?Under the umbrella of the Austrian Association of the Gas and District Heating Supply Companies (FGW), the Austrian gas industry has developed a concrete proposal for the ramp-up of hydrogen transport infrastructure. At its heart lies the question of how investment in networks can be facilitated, even though demand, production sites and market prices are still subject to considerable uncertainty. The starting point of the concept is the diagnosis of a structural problem: the roll-out of hydrogen is failing less due to technical issues than to a lack of investment and revenue security. In particular, the volume risk – that is, the uncertainty regarding actual future demand – cannot be borne by network operators and requires clear state guarantees. As a key response to this, an integrated model combining network planning and financing has been developed. On the infrastructure side, a sequential development approach is proposed, distinguishing between a strategically defined initial network and a core network that grows in line with demand. Whilst the initial network is to be implemented immediately, further expansion will take place in line with specific capacity requirements and contractual commitments. The aim is to ensure that investments are triggered neither too early (stranded costs) nor too late (location disadvantages). At the heart of the financing concept is a ramp-up account with a government guarantee, combined with capped network charges. This model enables an intertemporal shift of costs: initial financing gaps are temporarily covered by government-backed funds and later offset by a growing user base. This avoids high initial costs whilst simultaneously creating investment security. The model is supplemented by European instruments such as Cross-Border Cost Allocation (CBCA) and (European) funding (CEF), particularly for cross-border infrastructure projects. A key aspect here is the active role of the state in securing the early phase of market ramp-up – the risk of a European hydrogen economy cannot be shouldered by individual companies. Against this backdrop, clear parallels can be drawn with the current consultation by ENNOH and ENTSOG. At European level, too, volume and revenue risk is identified as a key hurdle. The proposed instruments – in particular intertemporal cost allocation, state guarantees and central European mechanisms – also aim to facilitate investment in anticipatory infrastructure. For the ongoing consultation by ENTSOG and ENNOH, this means that national models such as the FGW concept can help to bring European de-risking approaches to life – and thus shorten the path from strategic papers to concrete investment decisions. The concept paper can be found here (German only). |
|
