Renewables curtailment ‘will help to bridge the gap’ in producing green hydrogen

Facebook
Twitter
LinkedIn
Reddit
Email
Panellists in discussion at the Green Hydrogen Summit 2022 in Lisbon. Image: Solar Media.

Powering electrolysers with renewables generation that would otherwise be curtailed could be an effective strategy for producing green hydrogen in the coming years until the H2 sector benefits from further cost declines, it was suggested during a panel discussion.

Speaking during the Green Hydrogen Summit 2022 yesterday, Pedro Almeida Fernandes, head of power generation at utility Endesa Portugal, said such an approach “brings a lot of competitiveness” to the price of producing green hydrogen.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

“Curtailment is already playing a role and will play a role over the next few years. And it will help to bridge the gap in price until that gap is bridged technologically by scale in industry,” Almeida Fernandes said during the event, hosted by PV Tech publisher Solar Media in Lisbon.

He explained that in markets such as Iberia, grid constraints mean developers are hybridising renewable sources to increase the load factor while making the most of grid connection points – an approach seen in Portugal’s recent solar auction, in which utility EDP secured a contract for a floating PV project it plans to hybridise with a ground-mount solar farm and a wind plant.

Endesa earlier this year was awarded connection rights to develop a €600 million (US$660 million) project in Portugal that will combine solar, wind, a battery energy storage system (BESS) and a 500kW electrolyser for the production of green hydrogen. The electrolyser will use surpluses that exceed the BESS’ storage capabilities.

Endesa will be able “to fully capture all the renewable energy produced”, avoiding curtailment while improving the profitability of the renewables projects in the process, Almeida Fernandes said.

“We can input this extra energy to the electrolyser at virtually the opportunity cost in order to be able to compete in H2 price.” Such a strategy “brings a lot of competitiveness” in price, since the company only has to recuperate the electrolyser investment, not the investment in renewables that produce the energy, Almeida Fernandes explained.

He said green hydrogen can be “extraordinarily useful” to decarbonise certain industry segments such as aviation and marine transportation. “I think we should design our projects… to target very specifically these key consumptions so that we can bring the economy towards green H2 faster and faster at a competitive rate.”

According to Pedro Pereira, managing director for Southern Europe at renewables developer Eurowind Energy, the move towards hydrogen “needs to be accelerated”, but should be supported by government incentives.

He said during the panel discussion that these could be in the form of tax rebates or feed-in tariffs or some support at the consumption level, adding that eventually it will be possible “to dramatically reduce the cost of green hydrogen to a fraction of what it is right now”.

Pereira is hopeful that cost parity will be reached with other forms of hydrogen production sooner than expected: “It’s also possible to reduce the gap to blue and grey hydrogen due to the carbon taxes that will tend to increase.”

According to Scott Crawford, systems engineer at the European Marine Energy Centre, the bigger the swing in electricity prices, the more chance hydrogen has of becoming competitive. “We’re seeing huge spikes at times in the spot market prices for electricity at the moment. And as those spikes get bigger, then hydrogen becomes more competitive,” he said.

Crawford sees stronger potential for electrolysers powered by behind-the-meter renewables plants. He said renewables asset owners will need to decide whether they should produce hydrogen or export electricity to the grid “because it will be more profitable to export it to the grid probably. But if you want the hydrogen, you might need to bite the bullet and take that risk.”

Read Next

October 6, 2025
An expert panel has identified a series of grid failures that led to April's unprecedented power outage in Spain and Portugal, ruling out renewables as the leading cause.
September 24, 2025
The development of India’s power transmission network is lagging behind the country’s rapid growth in renewable energy, leading to project delays and cost increases
September 23, 2025
Australia’s NEM set a new instantaneous renewables share record of 78.6% on 22 September, surpassing the previous day's record of 77.9%.
September 17, 2025
For the third year in a row, self-consumption installs have fallen in Spain, with 611MW of new additions in the first half of 2025, according to a report from trade body APPA Renovables.
Premium
September 10, 2025
PV Talk: Italy’s new CfD policy offers clear support for solar developers in an otherwise uncertain legislative landscape, says Terrawatt's Patrizio Donati.
September 10, 2025
Voltalia is seeking compensation for the ongoing curtailment of its Brazilian solar and wind fleet, which has exceeded expectations this year.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK