Arguably the biggest barrier to renewable hydrogen development is lack of widespread understanding of the current reality of the industry and the opportunity it presents. Virtually no electrification plans anticipate a major role for renewable hydrogen as of early 2021.
Several policies would help launch the renewable hydrogen industry in the Northwest, perhaps chief among them:
- Utility tariffs for flexible loads that offer reduced rates or adders that recognize the services electrolyzers can offer to the system (e.g., load balancing, reserves, and wholesale price-shopping);
- Incentives or requirements for utilities to participate in electrolyzer projects;
- Carbon emission reduction targets or carbon taxes;
- General understanding of the opportunity that exists today.