EU Regulation 2024/1789: Driving the Transition to Renewable Gases and Hydrogen
Key Ideas
- The EU adopted Regulation 2024/1789 to regulate renewable gas, natural gas, and hydrogen markets, aiming to reduce greenhouse gas emissions and achieve climate neutrality by 2050.
- Measures include promoting biomethane, green hydrogen, and cross-border trade to improve efficiency, competitiveness, and sustainability while enhancing energy security.
- Key provisions involve demand aggregation, joint purchase of natural gas, and promoting third-party access to gas grids to foster competition and harmonised tariffs.
- The regulation also establishes grid codes, technical standards, and guidelines to govern the operation, access, and management of energy grids in the EU.
The European Union recently adopted Regulation 2024/1789 to address the internal markets for renewable gas, natural gas, and hydrogen, with a special focus on the transition towards climate neutrality by 2050. The regulation, effective from February 2025, aims to reduce greenhouse gas emissions and align with the EU's decarbonisation goals outlined in the 'Green Pact'. It introduces measures to promote renewable and low-carbon gases like biomethane and green hydrogen, facilitating their integration into the energy system and supporting cross-border trade. The policy emphasizes the importance of energy security and sustainability while driving competitiveness and efficiency in the market. Noteworthy aspects include the promotion of third-party access to gas grids, the development of grid codes, and the establishment of technical standards to govern energy grid operations. The regulation also prioritizes the use of biomethane over fossil gases, expediting the connection process to gas grids and granting regulatory authorities the power to apply discounts on transmission and distribution tariffs. Furthermore, it encourages the development of the hydrogen market through mechanisms supporting its growth, promoting cross-border coordination, and planning for an integrated EU-level hydrogen grid. The overall sentiment towards the regulation is positive, as it represents a significant step towards modernizing and aligning the sector with current energy transition goals.