diff --git a/CHANGELOG.md b/CHANGELOG.md
index 7e1169a81..15149fefd 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -40,6 +40,8 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/).
     [[#1767](https://github.com/remindmodel/remind/pull/1767)]
 - **33_CDR** added ocean alkalinity enhancement to the CDR portfolio (OAE is turned off by default)
     [[#1777](https://github.com/remindmodel/remind/pull/1777)]
+- **32_power** increase minimum required dispatchable back-up capacity for VRE integration
+    [[#1789](https://github.com/remindmodel/remind/pull/1789)]
 - **scripts** integrate automated scenario validation via piamValidation as output script
     [[#1790](https://github.com/remindmodel/remind/pull/1790)]
 
diff --git a/modules/32_power/IntC/datainput.gms b/modules/32_power/IntC/datainput.gms
index 93edca674..19f7191fa 100644
--- a/modules/32_power/IntC/datainput.gms
+++ b/modules/32_power/IntC/datainput.gms
@@ -116,4 +116,10 @@ loop(ext_regi$f32_cm_PriceDurSlope_elh2(ext_regi),
 *** The value of 1.1 is derived from the regression of the German Langfristzenarien.
 p32_flexSeelShare_slope(t,regi,"elh2") = 1.1;
 
+*** Elh2VREcap phase-in factor
+p32_phaseInElh2VREcap(t)$(t.val < 2030) = 0;
+p32_phaseInElh2VREcap("2030") = 0.25;
+p32_phaseInElh2VREcap("2035") = 0.5;
+p32_phaseInElh2VREcap(t)$(t.val > 2035) = 1;
+
 *** EOF ./modules/32_power/IntC/datainput.gms
diff --git a/modules/32_power/IntC/declarations.gms b/modules/32_power/IntC/declarations.gms
index 7143eb387..9c102cf67 100644
--- a/modules/32_power/IntC/declarations.gms
+++ b/modules/32_power/IntC/declarations.gms
@@ -18,6 +18,7 @@ parameters
     o32_dispatchDownPe2se(ttot,all_regi,all_te)     "output parameter to check by how much a pe2se te reduced its output below the normal, in % of the normal output."
     p32_shThresholdTotVREAddIntCost(ttot)           "Total VRE share threshold above which additional integration challenges arise. Increases with time as eg in 2030, there is still little experience with managing systems with 80% VRE share. Unit: Percent"
     p32_FactorAddIntCostTotVRE                      "Multiplicative factor that influences how much the total VRE share increases integration challenges"
+    p32_phaseInElh2VREcap(ttot)                     "phase-in factor for electrolysis capacities built from stored VRE electricity, scale up from 2030 to 2040"
     p32_flexSeelShare_slope(ttot,all_regi,all_te)   "Slope of relationship between average electricity price for flexible technology and share of this technology in total electricity demand. Unit: [ % percentage of average electricity price / % share in electricity demand]."
 ;
 
@@ -48,6 +49,7 @@ equations
     q32_operatingReserve(ttot,all_regi)  			"operating reserve for necessary flexibility"
     q32_h2turbVREcapfromTestor(tall,all_regi)       "calculate capacities of dummy seel<--h2 technology from storXXX technologies"
     q32_h2turbVREcapfromTestorUp(ttot,all_regi)     "constraint h2turbVRE hydrogen turbines to be only built together with storage capacities"
+    q32_elh2VREcapfromTestor(tall,all_regi)         "calculate capacities of dummy seel-->h2 technology from storXXX technologies"
     q32_flexAdj(ttot,all_regi,all_te)               "calculate flexibility benefit or cost per flexible technology to be used by flexibility tax"
     q32_flexPriceShareMin(ttot,all_regi,all_te)     "calculate miniumum share of average electricity that flexible technologies can see"
     q32_flexPriceShareVRE(ttot,all_regi,all_te)     "calculate miniumum share of average electricity that flexible technologies can see given the current VRE share"
diff --git a/modules/32_power/IntC/equations.gms b/modules/32_power/IntC/equations.gms
index f6c4bf72e..be046fafc 100644
--- a/modules/32_power/IntC/equations.gms
+++ b/modules/32_power/IntC/equations.gms
@@ -96,6 +96,13 @@ q32_h2turbVREcapfromTestorUp(t,regi)..
       p32_storageCap(te,"h2turbVREcapratio") * vm_cap(t,regi,te,"1") )
 ;
 
+*** build additional electrolysis capacities with stored VRE electricity, phase-in from 2030 to 2040
+q32_elh2VREcapfromTestor(t,regi)..
+  vm_cap(t,regi,"elh2","1")
+  =g=
+  sum(te$teStor(te), p32_storageCap(te,"elh2VREcapratio") * vm_cap(t,regi,te,"1") ) * p32_phaseInElh2VREcap(t)
+;
+
 
 ***---------------------------------------------------------------------------
 *' Definition of capacity constraints for CHP technologies:
diff --git a/modules/32_power/IntC/input/f32_storageCap.prn b/modules/32_power/IntC/input/f32_storageCap.prn
index a8383c57c..98424de5b 100644
--- a/modules/32_power/IntC/input/f32_storageCap.prn
+++ b/modules/32_power/IntC/input/f32_storageCap.prn
@@ -1,7 +1,7 @@
 *** SOF ./modules/32_power/IntC/input/storageCap.prn
                      storspv     storwind     storcsp
 elh2VREcapratio         0.16       0.12          0.12 
-h2turbVREcapratio       0.6        0.45          0.45
+h2turbVREcapratio       1.2        0.90          0.90
 batteryVREcapRatio       3          1.1           0
  
 *** EOF ./modules/32_power/IntC/input/storageCap.prn