Hydrogen and decarbonised gas market package
The European Union revised its gas market regulations, including a focus on hydrogen, to align with its climate and energy goals as part of the European Green Deal. This comprehensive initiative seeks to reduce greenhouse gas emissions by at least 55% by 2030, relative to 1990 levels, and involves the integration of renewable and low-carbon gases into the energy system.
A significant component of this shift involves the "Hydrogen and gas markets decarbonisation package" introduced in December 2021.
This package revises the Gas Directive and Regulation to facilitate the decarbonisation of gas consumption, streamline the creation of necessary infrastructure, and ensure efficient markets. It aims to remove obstacles to decarbonisation, promoting a cost-effective transition with a particular focus on hydrogen.
Now, the EU hydrogen and gas decarbonisation package, consisting of Directive (EU) 2024/1788 and Regulation (EU) 2024/1789, was adopted in May 2024. The revised gas market rules were published in the EU Official Journal on 15 July and entered into force 20 days later.
Key elements of the EU legislation include:
- Infrastructure and Market Development for Hydrocarbon: Developing an EU-wide regulatory framework to enable a competitive hydrogen market, repurpose natural gas infrastructure for hydrogen, and establish a European Network of Network Operators for Hydrogen.
- Integration of Renewable and Low-carbon Gases: The proposal advocates for the integration of such gases into the existing network, reducing costs associated with cross-border tariffs and injection, and facilitating the trade of renewable and low-carbon gases.
- Consumer Empowerment and Market Competition: Extending consumer rights from the Electricity Directive to the gas markets, thereby enabling consumers to make informed and sustainable energy choices.
- Enhanced Energy Security: Adapting the security of gas supply regulation to include renewable and low-carbon gases and addressing emerging risks such as cyber threats.
The EU aims for these reforms to enhance energy security, support the development of hydrogen infrastructure, and ensure a sustainable and resilient energy system that aligns with the 2050 climate objectives. This holistic approach addresses not only technical and infrastructural needs but also market dynamics and consumer engagement, highlighting the EU's commitment to a modern, integrated, and decarbonised energy future.
