Renewable origin, additionality, temporal and geographical correlation – eFuels production in Germany under the RED II regime

Abstract

E-fuels are a promising technological option to reduce the carbon footprint in the transportation sector. To ensure the renewable origin of electricity-based fuels and minimize the impact of power-to-liquid facilities on the electricity grid, the European Union implemented electricity purchase conditions within the Renewable Energy Directive II. In this work, we analyze the impact of these electricity purchase conditions on the optimal placement, dimensioning and operation of facilities and the German electricity system. The results show that implementing the proposed electricity purchase conditions increases electrolysis capacity by 15.8% and reduces utilization by 672 h in 2030. With the constrained electricity supply, the power-to-liquid facilities concentrate on network nodes with high renewable potential, while the carbon dioxide supply loses importance. Overall, the German electricity system is not heavily affected by the proposed purchase conditions as the required renewable generation capacities only increase slightly. At the same time, carbon dioxide abatement costs rise by 14.3% by introducing the electricity purchase conditions.