Council of the European Union (EU) and the European Parliament have reached a provisional agreement outlining future rules governing hydrogen and natural gas markets.
The strategic plan is crafted to steer the EU away from dependency on natural gases, directing focus towards the integration of renewable and low-carbon gases into the energy landscape.
The first phase of the EU’s hydrogen and gas package, now finalized, centers on regulations governing investments in hydrogen infrastructure. This emphasizes support for “hard-to-abate” sectors like steel and chemicals, laying the groundwork for a substantial transition in the European energy sector.
Spain’s ecological transition minister, Teresa Ribera, lauded the agreement as a significant achievement, emphasizing its potential to catalyze the emerging hydrogen sector and facilitate the gas industry’s shift towards renewable energy. The pact also addresses consumer protection and fortifies the security of energy supply.
The agreement delineates a clear division between Transmission System Operators (TSOs) and Distribution System Operators (DSOs) for hydrogen. This strategic move is geared towards enhancing coordination between network development plans for hydrogen, electricity, and natural gas. Priority is accorded to hydrogen utilization in sectors where decarbonization poses challenges.
Crucially, the pact enshrines the rights of customers to switch suppliers or market participants in a non-discriminatory manner concerning cost, effort, and time. This safeguard aims to shield consumers from potential disruptions resulting from the decommissioning of gas networks or their repurposing for hydrogen.
While hailed as a transformative step by some, climate campaigners have raised concerns. Critics argue that the deal falls short in preventing the fossil gas industry from influencing the distribution grid, potentially leading to overinvestment in redundant infrastructure and inefficient hydrogen use.
Greenpeace EU’s climate and energy campaigner, Silvia Pastorelli, cautioned against entrusting the hydrogen grid to the fossil fuel industry, warning of a risky substitution of hydrogen for gas. The absence of a defined phase-out date for fossil gas has also drawn criticism, with environmental advocates calling for a more decisive stance.
The agreement is part of the broader ‘Fit for 55’ package, aligning climate and energy laws with the EU’s ambitious targets to slash greenhouse gas emissions by at least 55% by 2030 and achieve climate neutrality by 2050. The second phase of the gas package is slated for agreement at a later stage.
As Europe charts its course towards a greener future, the provisional agreement on hydrogen and gas market rules represents a pivotal stride. Balancing industry interests, consumer rights, and environmental concerns will be crucial as the EU navigates the intricate path toward sustainable energy.
