Abstract:

Competitive public procurement is emerging as a tool to promote green hydrogen production and use. Auctions, like all tariff-based support schemes, offer long-term revenue certainty, allow for long-term budgetary planning and enable progress in the technology learning curve.

The competitive nature of auctions can enable true price discovery, revealing feasible remuneration for producers and costs to consumers, and minimising the overall cost of public support. Auctions also provide a clear pipeline of future projects, and provide transparency in project selection and the level of support they receive. They can ensure timely delivery of what is promised in bids, and can be designed to achieve broader policy objectives for green hydrogen deployment or to address specific barriers.