Table 1 Key requirements for PPA contracts and grid connected facilities under the DA⁵

Power purchase agreement

Producers must enter into one or more PPAs with renewable electricity installations, ensuring the amount of renewable electricity used aligns with the hydrogen production process.

Additionality constraints

For facilities starting operation from year 2028, the electricity generation installations under the PPA must be “new” and “unsubsidized.” Facilities commencing operation before 2028 are exempt until January 1, 2038. Τhe additionality constraint does not apply for bidding zones with emission intensity lower than 18 g CO_2eq per MJ.

Temporal correlation

Hydrogen or fuel production must temporally align with renewable electricity production, meeting hourly correlation requirements, with a relaxation period until December 31, 2029, allowing monthly correlation.

Spatial correlation

The renewable electricity installations under the PPA must be located in the same bidding zone as the electrolyzer or a neighboring zone with equal or higher electricity prices.