Fit for 55: the EU Council approves the package on the gas and hydrogen market

Fit for 55: the EU Council approves the package on the gas and hydrogen market
Fit for 55: the EU Council approves the package on the gas and hydrogen market

The gas package defines solid rules for the organization of the natural gas market and establishes a solid framework for the development of the future hydrogen market, including dedicated infrastructure

The EU Council has given the green light to a regulation and directive which establish common rules for the internal market of renewable and natural gases and hydrogen and which reform the current European legislation on gas. The new rules will contribute to the shift to renewable and low-carbon gases, in particular hydrogen, in the energy system, in order to achieve decarbonisation goals.

DESIGNING THE GAS AND HYDROGEN MARKET

The gas package defines solid rules for the organization of the natural gas market and establishes a solid framework for the development of the future hydrogen market, including dedicated infrastructure. It 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 principle of “energy efficiency first” and with a forward-looking approach. And they also pave the way for a permanent demand aggregation platform. Network operators will finally have to prepare a ten-year development plan for the EU network.

SWITCHING TO RENEWABLE GAS

In order to ensure the phase-out of fossil fuels, long-term contracts for fossil gas will no longer be concluded from 2049. The new rules promote the penetration of renewable gas and low-carbon gas, in particular hydrogen in coal- and carbon-intensive regions. Member States will provide tariff discounts and incentives to facilitate market and system integration, especially 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 today, which include particular attention to remote areas. Measures taken by Member States include protection against disconnection and the appointment of suppliers of last resort to ensure continuity of supply.

 
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