Europe's Major Development: The Gas Package for Renewables and Hydrogen Market
Key Ideas
- The Gas Package adopted by the European Council aims to support renewable and low-carbon gases, especially hydrogen, in the EU gas market.
- It establishes rules for the integration of these gases into the existing network and the creation of a competitive hydrogen market.
- The package enforces obligations on operators regarding transmission, storage, and distribution, ensuring transparency and non-discrimination.
- Hydrogen operators will play a crucial role in developing the hydrogen market through a ten-year network plan, overseen by the European Network of Network Operators for Hydrogen (ENNOH).
On 21 May 2024, the European Council approved the 'Hydrogen and decarbonised gas market package,' representing a significant step in reforming the EU gas market to support renewable and low-carbon gases, particularly hydrogen. The package includes a recast of the gas regulation and gas directive, with a focus on integrating renewable and low-carbon gases and establishing cross-border hydrogen infrastructure. It enforces rules for market organization, transport, and storage of natural gas and hydrogen. Key features include unbundling and third-party access requirements to ensure a competitive hydrogen market.
The Gas Package mandates hydrogen operators to develop a ten-year network plan, identifying infrastructure needs and investments. The European Network of Network Operators for Hydrogen (ENNOH) will draft a Union-wide network development plan. Furthermore, the plan will expedite Projects of Common Interest processes and funding. The Gas Regulation outlines specific rules for the offtake of renewable and low-carbon gases, emphasizing the EC's role in supporting hydrogen and biomethane development. It requires MSs to facilitate gas access and infrastructure and obliges operators to assess investment possibilities for renewable gases based on market demand. Member States can offer network tariff discounts for renewable and low-carbon gases to promote their usage.
Topics
Policy
Energy Transition
Renewables
EU Regulation
Market Integration
Gas Market Reform
Network Infrastructure
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