HAR2 Bid Model

EvoInfra provided financial modelling support to Centrica in updating their existing appraisal model for bidding into the Hydrogen Allocation Round 2 (HAR2).

HAR2 aims to support up to 875MW of capacity of green hydrogen projects by the end of 2025, subject to affordability and value for money, along with HAR1, helping to achieve the UK’s Department of Energy Security and Net Zero’s aim of up to 1GW of electrolytic hydrogen production projects to be in operation or construction by 2025. 

The strategic objectives underpinning HAR2 are:

• Kickstart the low carbon hydrogen economy, helping meet the ambition of up to 1GW of electrolytic hydrogen capacity in operation or construction by 2025, and by doing so help grow hydrogen supply chains. 
• Support projects to deploy at scale, advancing government’s ambition to deploy up to 10GW of low carbon hydrogen production capacity by 2030, subject to affordability and value for money, with at least half from electrolytic hydrogen production capacity. 
• Establish the frameworks to put the market on a pathway to deliver cost reductions and value for money, supporting the market to transition to a future price-based competitive allocation regime. 
• Deliver carbon savings to allow us to stay on track to meet Carbon Budget 5, Carbon Budget 6 and other net zero commitments.