Energy Regulation Solutions offers specialized regulatory consulting at the intersection of innovation, climate goals, and market readiness. We support developers, investors, and policymakers in navigating complex regulatory landscapes for hydrogen, CO₂, and Power-to-X technologies in the EU, Germany, and the US
The term “Power-to-X” is now widely used in the energy sector. This concept is less than 20 years old.
The idea of producing fuels from renewable electricity emerged in Germany in the early 2010s. What began as Power-to-Gas (PtG) has since evolved into the broader Power-to-X (PtX) approach.
✅ Key milestones in its development:
📌 2008 – Integrated Energy System Concept:
Coupled electricity and gas with CO₂ sinks;
Introduced Power-to-Gas via electrolyzers producing green hydrogen.
📌 2008 – European Biomass Conference:
Presented integrated electricity-gas-CO₂ systems;
Proposed the Sabatier process for CO₂ methanation instead of the reformer for the better integrability of hydrogen in the natural gas grid.
📌 2009 – Breakthroughs:
Patent application for PtG, first PhD thesis on the topic, and
The PtG plant for CO2 methanation – SolarFuel GmbH.
📌 2013/14 – Shift to Power-to-X:
The concept was expanded beyond gas to include fuels, chemicals, and heat — enabling decarbonization where direct electrification isn’t enough.
🎯 Main Purpose of PtX: To store renewable energy and decarbonize hard-to-electrify sectors through fuels, chemicals, and other energy carriers.
Pacific Northwest Low-Carbon Hydrogen Analysis, published by The Pacific Northwest Economic Region (PNWER), provides a comprehensive view of supply, demand and trade opportunities for low-carbon hydrogen between the US and Canada.
✅ Some takeaways
📌 Canada:
has a total of 19 direct or indirect support programs available to accelerate the development and deployment of hydrogen technologies and industry across the value chain.
Tax measures such as the Clean Hydrogen Investment Tax Credit (ITC), Clean Technology ITC, Clean Technology Manufacturing ITC, and the Carbon Capture, Utilization and Storage (CCUS) ITC are complemented by funding programs such as the Clean Fuels Fund and Strategic Innovation Fund – Net-Zero Accelerator.
📌 The US:
has a total of 34 direct or indirect federal programs and initiatives across multiple national departments and agencies, which enable the use of hydrogen across the value chain.
The US Renewable Fuel Standard (RFS) mandates the blending of renewable fuels into the supply of transportation fuels, with an aim at reducing overall GHG emissions from the sector. While the RFS primarily focuses on biofuels, it also includes provisions for hydrogen derived from renewable feedstocks, like biomass, which generates an economic incentive for the transportation sector to include low-carbon hydrogen in its pathways to decarbonization.
African Green Hydrogen Report, published by GIZ, is available via this link.
✅ Some key takeaways
📌 Export Potential:
Several African countries are developing ambitious green hydrogen export strategies aimed at European and Asian markets.
Tunisia, Namibia, Morocco, Egypt, and South Africa aim to have annual exports of more than 20 million tons of green hydrogen equivalent by 2050.
📌 Policy and regulation:
By February 2025, eight African countries – Algeria, Egypt, Kenya, Mauritania, Morocco, Namibia, South Africa and Tunisia – have adopted hydrogen strategies and/or roadmaps.
Main challenge is a lack of the required comprehensive regulatory frameworks to translate these strategies into action.
📌 Financing projects:
Almost 80% of the public funding for GH2 projects in Africa came from Europe, with Germany accounting for 13% of total funding.
Only a small fraction of announced large-scale African hydrogen projects have reached final investment decisions.
📌 Sustainability considerations:
Electricity and water sustainability are key concerns for green hydrogen projects, particularly in arid regions.
As environmental standards evolve, emerging certification schemes demand strict water use, land access, and emissions compliance.
On 6 August, the German Federal Cabinet approved the Draft Law to amend the Carbon Dioxide Storage Act. The law is intended to enable the use of CCS (carbon capture and storage) and CCU (carbon capture and utilization), as well as the transport and storage of CO2.
The Draft Law was developed over the past few months by the Federal Ministry for Economic Affairs and Energy and coordinated with the states, associations, and other ministries.
✅ Key Takeaways:
📌 With this draft law, Germany joins the ranks of countries that aim to use CCS technologies as part of achieving their climate targets.
📌 The law establishes a legal framework for the construction of CO2 pipelines and storage facilities, while ensuring compliance with safety and environmental regulations.
📌 The main provisions include:
Application of the law to the licensing and operation of CO2 pipelines, the licensing and operation of permanent underground storage facilities, as well as the investigation, monitoring, decommissioning, and aftercare of all facilities and equipment related to CO2 storage and transport.
Authorization of CCS facilities for commercial use on an industrial scale on the continental shelf and in the exclusive economic zone.
Exclusion of marine protected areas and coastal waters from CO2 storage.
An opt-in option for federal states to allow onshore storage on the German mainland.
Recognition of the overriding public interest for the construction, operation, and significant modification of CO2 pipelines and storage facilities.
Exclusion of emissions from coal-fired power generation from access to the CO2 pipeline network.
Introduction of regulations to accelerate procedures and approvals for the development of CO2 infrastructure.
📌 An important initiative from the coalition agreement and the emergency program.
📌 This Draft Law will provide relief for all end customers.
📌 The relief to all end customers will be in the amount of approximately €3.4 billion:
with a levy of €2.89 per megawatt hour, the relief for a four-person household will amount to approximately €30 to €60 per year.
the relief on gas prices will also contribute to a reduction in electricity costs.
✅ Draft Law to Accelerate the Expansion of Geothermal Plants, Heat Pumps, and Heat Storage Facilities
📄 Draft Law: Entwurf eines Gesetzes zur Beschleunigung des Ausbaus von Geothermieanlagen, Wärmepumpen und Wärmespeichern sowie zur Änderung weiterer rechtlicher Rahmenbedingungen für den klimaneutralen Ausbau der Wärmeversorgung
📌 Planning approval procedures for heat pipelines and the construction of large heat pumps will be accelerated.
📌 The approval process for heat storage facilities will be clearly regulated, thereby eliminating uncertainty in practice.
📌 In the future, authorities will be able to require geothermal companies to provide proof of coverage for mining damage as well.
✅ Law Implementing the EU Renewable Energy Directive in the Areas of Offshore Wind Energy and Electricity Grids
📌 Introduction of acceleration areas for offshore wind energy and infrastructure areas for transmission grids, distribution grids, and offshore connection lines.
📌 Streamlined approval procedures are to apply to these areas.
📌 The draft transposes the requirements of the RED III in the areas of offshore wind energy and electricity grids into national law.
✅ Act Amending Energy Industry Law to Strengthen Consumer Protection in the Energy Sector and Amending Other Energy Law Provisions (EnWG Amendment 2025)
📌 The Draft Law further increases the level of protection for consumers in the energy sector through obligations of electricity suppliers to household customers to hedge against price risks.
📌 The new regulations on “energy sharing” will enable consumers to actively participate in the energy market and the energy transition.
📌 The Draft Law provides for a further acceleration of the smart meter rollout.
The European Commission has launched the public consultations regarding the initiative “Strategic Roadmap for digitalisation and AI in the energy sector”.
🗓 Feedback period: 05 August 2025 – 05 November 2025
📌 To exploite of synergies with the Affordable Energy Action Plan, the Energy Efficiency Roadmap, the Grids Package, the Citizens Energy Package, the Electrification Action Plan and the Heating and Cooling Strategy.
📌 To complement the upcoming Apply AI Strategy, the Data Union Strategy, and the Cloud and AI Development Act.
📌 To leverage the potential of digital and AI technologies for the energy system, while mitigating the associated risks and enable the decarbonisation and competitiveness of the EU economy.
☑️ What does the initiative aim to achieve?
📌 Accelerate deployment
Enable access to energy data to support innovative services
Help develop and test AI tools for the energy sector
Advance smart grids and digital twins
📌 Boost innovation & research
Close the innovation gap
Strengthen EU technological sovereignty
Support clean energy R&D using AI
📌 Integrate data centers sustainably
Improve planning and energy efficiency
Minimise grid strain and local impact
📌 Enhance transparency & risk oversight
Share best practices for AI in critical infrastructure
Provide guidance on high-risk AI systems
Use AI to improve energy asset security
📌 Create a robust governance framework
Foster collaboration across sectors and Member States
Engage with international partners and stakeholders
According to the latest Annual Energy Outlook 2025 by the U.S. Energy Information Administration, even when accounting for the IRA incentives prior to the “One Big Beautiful Bill Act”, hydrogen produced from natural gas remains dominated in the long-term outlook.
📊 By 2050, the majority of H2 in the U.S. is projected to be produced from natural gas via steam methane reforming (SMR). Less than 1% is expected to come from electrolyzers, despite supportive policies.
Yet, this contrasts with the vision laid out in the U.S. National Clean Hydrogen Strategy and Roadmap, which foresees a more diverse production mix — including electrolysis, fossil-based hydrogen with CCS, and biomass/waste-derived hydrogen, playing key roles through at least 2050.
The key takeaway: Ambition and reality are still not fully aligned, when it comes to scaling up green hydrogen.
📢 New EU Hydrogen Auction – Draft Terms & Conditions Open for Feedback
The European Commission has published the draft Terms & Conditions (T&Cs) for the IF25 Hydrogen Auction, the third call under the European Hydrogen Bank, set to launch by the end of 2025.
☑️ What’s new in this round?
Proposed Budget: EUR 1.1 billion, split across three topics:
Topic 3: EUR 200 million – RFNBO and/or electrolytic low-carbon hydrogen for maritime applications
☑️ Key Updates:
📌 Broader Scope: Support extended to include electrolytic low-carbon hydrogen alongside RFNBOs
📌 Electrolyser Resilience: Aligned with the NZIA Implementing Act (C(2025) 2900), simplifying some earlier resilience criteria
📌 Environmental Screening: New evaluation against Do-No-Significant-Harm (DNSH) principles
📌 No Double Funding: Projects already funded under the Innovation Fund or other EU sources are not eligible
📌 Electricity Sourcing Plan: Projects must show a credible strategy for sourcing 100% of required electricity. For low-carbon hydrogen, at least 60% of non-renewable input must meet the 70% emissions savings threshold defined in Directive (EU) 2024/1788.
➡️ What’s next?
Stakeholder feedback will be gathered through the consultation
Feedback will be incorporated into the final design of the auction
The final version of T&Cs will be published with the auction launch in Q4 2025
This July, the European Commission launched a public consultation on proposed revisions to CBAM. The key aims:
Extend CBAM to certain downstream products – to reduce the risk of carbon leakage when production shifts outside the EU or buyers turn to non-EU suppliers.
Strengthen anti-circumvention measures – to close gaps and ensure the financial obligations are not avoided without valid reasons.
Clarify electricity-related rules – particularly the use of default values and criteria for using actual electricity emissions.
📅 Feedback period – 01 July 2025 – 26 August 2025
✅ Main Objectives of Consultation
The consultation explores:
📌 Inclusion of selected downstream goods based on carbon leakage risk, embedded emissions, and technical feasibility.
📌 Options to reinforce anti-circumvention tools (e.g. more reporting requirements).
📌 Changes to CBAM rules for electricity – from emission factor updates to clearer criteria for PPAs and grid conditions.
☑️ What next?
A factual summary report will be available 8 weeks after the consultation closes, followed by a full synopsis report.
The latest EU report titled “Technical assistance to monitor functioning of the guarantees of origin (GO) system” provides an in-depth look at the GOs market and its impact on renewable energy and hydrogen tracking.
✅ Key Takeaways
📌 The GO market has achieved a healthy level of liquidity.
📌 While transparency has improved, price discovery remains limited. GO prices vary based on factors such as technology, region, and additionality – factors not always visible to consumers. Forecasting prices remains difficult due to elements of monopolistic competition.
📌 More than 90% of hydropower, 50% of wind, and 30% of solar electricity production in Europe is currently tracked via GOs.
📌 The GO system is effective in tracking renewable electricity, but further harmonization is needed to reduce the risk of misuse.
📌 Hydrogen
As of the end of 2023: only 0.4% of EU hydrogen production was based on water electrolysis (45 tonnes or 1.5 GWh).
An additional 9.2% (1,033 tonnes or 34 GWh) was produced as a green by-product (e.g., from chlor-alkali electrolysis).
The Hydrix index (as of January 2025) estimates green hydrogen prices in Germany at €7.80–€9.50/kg, roughly 2.5x higher than grey hydrogen (€3–€4/kg).
📌 Hydrogen GO trading volumes
RFNBO certification has only been possible since December 2024.
Until now, certified green hydrogen has only been traded via GOs or Non-Governmental Certificates (NGCs).
Assuming certification, 1,500 GOs could have been issued in 2023 for hydrogen produced via electrolysis.
While only a few EU Member States are active in the gas GO market and even fewer support EU-wide GO trading, interest in GOs is growing:
Smaller projects often opt for GOs/NGCs due to lack of RFNBO compliance.
Larger projects (many pre-FID) are preparing for RFNBO certification to benefit from offtake obligations under the compliance market.
