The European Council has adopted a regulation and a directive establishing common internal market rules for renewable gases and hydrogen and reform the current EU gas legislation.
The new rules will contribute to the shift to renewable and low-carbon gases, in particular hydrogen, in the energy system, with the aim of achieving the EU’s decarbonisation goals.
Designing the gas and hydrogen market
The hydrogen and decarbonised gas markets package, part of the Fit for 55he establishes solid rules for the organization of the natural gas market and establishes a common framework for the development of the future hydrogen market, including dedicated infrastructure. The regulation also contains specific rules for the transport, supply and storage of natural gas and hydrogen. The new rules require integrated and transparent network planning across the EU, according to the “energy efficiency first” principle and with a forward-looking approach. Gas and hydrogen network operators will prepare a 10-year EU network development plan. This text also paves the way for a permanent demand aggregation platform.
Switch to renewable gas
To ensure the phase-out of fossil fuels, starting from 2049, long-term contracts for fossil gas will no longer be signed. The new rules promote the penetration of renewable gas and low-carbon gas, especially hydrogen in coal. Member States will provide tariff discounts and incentives, in order to facilitate their market and system integration, in particular for the emerging hydrogen market, and thus ensure a just transition. A voluntary mechanism will also be established to support the hydrogen market for five years.
Protect customers from energy poverty
Vulnerable customers and those affected by energy poverty will be better protected thanks to the new rules adopted by the Council, which provide a focus on remote areas. Member States’ measures include protection against disruptions and the appointment of suppliers of last resort to ensure continuity of supply.
Next steps
The regulation and directive will now be signed and published in the Official Journal of European Union.
The regulation will become directly applicable six months after its publication. As regards the directive, member states will have two years to adapt their national legislation to its provisions.
