A report from Policy Exchange is urging the UK government to champion the adoption of electrolysers in regions with heavily curtailed wind energy, unlocking the potential of otherwise wasted renewable power.
The report, titled ‘Wasted Wind to Clean Hydrogen,’ asserts that harnessing this untapped energy could yield enough hydrogen to replace two-thirds of the nation’s annual consumption of carbon-intensive grey hydrogen, amounting to 700,000 tonnes.
Currently, the UK is losing a staggering £1 billion each year due to constraints in the energy system, a figure predicted to escalate to an annual loss of £3.5 billion. The report emphasizes the economic impact of these constraints and proposes a transformative solution in the form of electrolysis, converting excess wind energy into valuable green hydrogen.
According to the research conducted in collaboration with LCP Delta, the volume of wasted wind energy in 2022 had the potential to produce over 118,000 tonnes of green hydrogen. This number is projected to surge to an impressive 455,000 tonnes by 2029, showcasing the massive potential waiting to be harnessed.
The report outlines seven primary recommendations for the UK government to maximize these opportunities. Among them is collaboration with the renewables sector in developing Constraint Management Plans (CMPs) and amending the Contract for Differences (CfD) regime to incentivize hydrogen production through commercial partnerships. The report also stresses the importance of avoiding guaranteed constraint payments and enhancing flexibility in system charges to encourage grid constraint management best practices.
As the world intensifies efforts towards a sustainable future, Policy Exchange’s report serves as a blueprint for the UK to revolutionize its energy efficiency landscape. By turning wasted winds into clean hydrogen, the nation has the potential not only to cut carbon emissions but also to reap economic benefits, marking a transformative step towards a greener and more resilient energy future.
