In fact, they could do in Wunsiedel what they dream of in many places in Germany and Bavaria. And Philipp Matthes actually thought that he was “innovative” when he was making progress with his energy transition project. Matthes is one of the managing directors of Bavaria’s largest electrolysis plant, which went into operation a few months ago with an even bigger promise: to supply hydrogen for the region, from renewable energies, climate-friendly, decentralized and independent. A role model for the emerging hydrogen economy, which is primarily intended to alleviate the energy concerns of industry. But instead, Matthes currently has worries himself. He and his system are in “waiting position,” as he calls it. “We don’t produce at first. And if we do, then only in small quantities.”
In fact, operations in the flagship project are largely at a standstill. The electricity price brake has been identified as the main cause of the misery in the Fichtelgebirge: Just that instrument, which is supposed to provide cheap energy in these times of crisis, is the opposite. The future of hydrogen in Wunsiedel is threatened with a halt before it really gets going.
The start was promising. Politicians and media representatives from all over the country traveled to the opening of the WUN H2 facility last September. Prime Minister Markus Söder (CSU) also came, spoke of “Bavaria’s pacemaker” and how great Wunsiedel was: “What is happening here is the Champions League.” The electrolyser with an output of 8.75 megawatts is part of the “Wunsiedler Weg” that the region has taken. With the help of wind and solar power, the plant breaks down water into oxygen and hydrogen. The latter flows into the industrial halls of automotive suppliers and metal processors or is converted back into electricity. The University of Bayreuth is involved in research, and a hydrogen filling station is also planned for more green mobility. The whole thing is operated jointly by the municipal utility, the electrolyser manufacturer Siemens and the company Rießner-Gase. It should be self-supporting. A challenging project: Experts are convinced that the production of hydrogen will only find imitators if it is profitable and competitive. The fact that more energy is put into electrolysis than comes out converted does not make things any easier.
In this sense, WUN H2 is important. At the moment, however, the plant is mainly surrounded by uncertainties. Why is tricky; Even the short version is three pages long and was sent by Wunsiedel’s mayor as an open letter to the Federal Ministry of Economics at the end of November. The operation of the electrolyser is “acutely endangered from an economic point of view,” it says.
To put it simply, the problem is not so much the electricity price brake, but rather its design. With the new law, the federal government wants to skim off excess profits on the electricity exchange caused by the crisis. Electricity production has not become more expensive for operators of wind and solar systems, so they can market their energy cheaply. But that doesn’t do the Wunsiedler any good: they have not yet been able to conclude a direct contract with a local provider and must continue to buy from the stock exchange at a fixed price. But it is so high that hydrogen production is no longer worthwhile. And concluding the planned contract with a local wind energy supplier instead doesn’t seem realistic – because given the difference between the stock exchange and direct marketing, they would have to pay extra themselves.
The relief for citizens and industry are necessary
Or to put it another way, greatly reduced: Suppose the operator of a wind farm gets 14 cents for the electricity. But it would be skimmed off at the market price of 30 cents. “It’s easy to calculate that you’re making a minus,” says Marco Krasser, head of Wunsiedler Stadtwerke. The owners have to service loans, and there is talk of running costs “to a not inconsiderable extent”. Nevertheless, they consider the electricity price brake to be fundamentally correct. “We agree that relief for citizens and industry is definitely necessary,” says Krasser.
How to proceed remains unclear. In theory, the electricity price brake provides a few clauses for such cases. Opinions differ as to whether they offer a practical way out of the dilemma. In Wunsiedel, they are of the opinion that the specifications do not suit them. But the Federal Ministry of Economics writes on request that the electrolysis system could definitely benefit. Apart from that, the design of the electricity price brake is bound to the requirements of European law. The EU emergency regulation prescribes “which technologies are to be included in the levy”. In addition, a deadline is required by which the so-called PPA contracts between producers and buyers of renewable energies must be concluded in order to be taken into account. Otherwise, skimming off the excess profits would “practically run out”.
In the Fichtelgebirge such sentences make the need bigger rather than smaller. The deadline is long past at the beginning of November 2022, and the expiry of the electricity price brake at the end of April 2024 is a long way off. Matthes and Krasser therefore hope that the rules will be adjusted. Under the current framework conditions, it is impossible to operate the electrolyser as planned. “If a customer wants to buy hydrogen in three months, but I can’t tell him at what price,” says Matthes: difficult. The further expansion of the system, which is supposed to be a model, was also suspended for the time being. Actually, Siemens wanted to double the capacities.