Deliverable 8.8 The societal business case for power-to-gas: valuing positive and negative externalities

This report shows that power-to-gas (PtG) is a technology that has various positive externalities (including environmental, health, grid cost and balancing and energy security benefits) that provide benefits to other stakeholder groups (like network operators and the broader society) in the market system, but not directly result in a commercially viable business case for PtG investments. We use a four quadrant framework to plot key PtG externalities, and discuss and analyse these externalities in more detail. We assess that to further the development of PtG in the EU, these positive externalities could serve as a rationale for policy change, and could be monetised and redistributed to cover the higher PtG investment costs and risks. We observe that within the current policy regime there is a risk of PtG underinvestment.

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