The Ministry of Climate, Energy and Environment announced on June 8 that it will publicly announce a revision to the 'Notice on Annual Purchase Volume Calculation for Hydrogen Power Bidding Market' from June 10 to June 30.
The hydrogen power bidding market was first established in 2023 for general hydrogen and in 2024 for clean hydrogen. The market operates by compensating power producers for the difference between the contract price and the market price (SMP) after they are selected through bidding.
According to the revised plan, the bidding volume for this year will be set at 500GWh for clean hydrogen power and 930GWh for general hydrogen power. The government plans to finalize the volume for 2027 and beyond through an additional announcement next year, reflecting the ongoing 12th Basic Plan for Power Supply and Demand and hydrogen supply conditions.
A significant change in this revision is the exclusion of coal and ammonia co-firing power generation from the support criteria for the clean hydrogen power bidding market. Previously, co-firing was viewed as a transitional measure to reduce greenhouse gases by utilizing existing coal power plants. However, as the government pushes for a coal phase-out policy by 2040, the support direction is shifting towards pure clean hydrogen.
The government will also revise the evaluation system for the clean hydrogen power bidding market. It is considering giving higher evaluations to projects that contribute to expanding domestic clean hydrogen production, including electrolysis. This aims to foster the domestic hydrogen industry ecosystem beyond mere power production support.
In the general hydrogen power sector, environmental assessment criteria will be strengthened to enhance greenhouse gas reduction effects. This plan aims to more actively reflect the carbon reduction efforts of hydrogen power producers in the bidding evaluations.
The government intends to finalize the notice after gathering opinions from the industry and related agencies during the public announcement period, with plans to open the hydrogen power bidding market in the second half of this year.
A ministry official stated, "This year's hydrogen power bidding market will be operated to foster the clean hydrogen production ecosystem and enhance greenhouse gas reduction effects. We will thoroughly gather opinions from the industry and related agencies during the public announcement period to establish detailed evaluation criteria."
* This article has been translated by AI.
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