The Council of Europe approved the new Regulation and Directive for the renewable gas market. These regulations establish a common registry for gases, such as hydrogen, promoting security of supply and energy independence.
Compliance with the new standards
The main objective of these updates is to achieve decarbonization and reduce dependence on fossil fuels. As a result, the new standards cover both natural gas and natural gas and renewable gases, giving hydrogen a strategic role in the gas market. Specific provisions are included for infrastructure development, transportation, supply and storage of natural gas and hydrogen.
In addition, new regulations require integrated and transparent network planning throughout the European Union, prioritizing energy efficiency. Therefore, network operators will have to prepare a development plan with a ten-year planning horizon, ensuring a forward-looking vision.
The Regulation and the Directive will be published in the Official Journal of the EU. Within six months of being published, the Regulation will become directly applicable, while the Member States will have two years to adapt their legislation to the provisions of the Directive.
The future of the renewable gas market
To avoid the persistence of fossil gas use, regulations prohibit long-term contracts for fossil gas from 2049. These standards also seek to boost the development and integration of renewable and low-emission gases into the market and the energy system. Consequently, Member States are required to establish tariff incentives and discounts.
In addition, they emphasize areas with high carbon and carbon intensity. The importance of renewable gases and hydrogen makes it possible to ensure fair energy security. It also establishes a voluntary mechanism to support the hydrogen market over the next five years, promoting its development and adoption.
This set of measures establishes important rules for the gas market, which reinforce the regulations for hydrogen. In addition, the Regulation stresses that an open and competitive internal market, with cross-border trade, offers benefits for competition, affordability and security of supply.
Promoting hydrogen as the main gas
The EU Hydrogen Strategy is the transition to a liquid market with commodity-based hydrogen trading would facilitate the entry of new producers, better integrate other energy carriers and create reliable price signals for investment and operating decisions.
Therefore, the established rules should facilitate the emergence of hydrogen markets and trading hubs, eliminating undue barriers such as disproportionate fees at interconnection points. The current rules of the electricity and natural gas markets must also be taken into account for the hydrogen market, considering their inherent differences.
The Regulation establishes general principles for the operation of the hydrogen market, taking into account the degree of development of the hydrogen market when applying these principles.
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Source: Green Hydrogen
Photo: Shutterstock
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