EASE Reply to the Revision of the Hydrogen and Gas Market Decarbonisation Package

EASE has provided a reply to the European Commission’s Public Consultation on the revision of the EU gas networks rules on market access addressing the Hydrogen and Gas Market Decarbonisation Package. As the Commission points out, a fully functioning internal energy market is key to ensuring security of supply, industry competitiveness and affordable energy for all consumers. It also contributes to achieving the emissions goals of the European Green Deal.

The key proposals from this initiative foresee the review of gas rules in order to:

• facilitate the market entry of renewable and low-carbon gases
• remove any undue regulatory barriers.

Costs for renewable energies have decreased significantly in the last ten years. In the relevant scenarios used by the Climate Target Plan Impact Assessment, biogas, renewable and low-carbon hydrogen and synthetic fuels would represent two-thirds of the gaseous fuels in the 2050 energy mix, with fossil gas used in combination with CCU/S representing the remainder. The areas where renewable and low-carbon gaseous fuels are expected to come into play include today’s industrial sectors (e.g. refineries, fertilisers, steel making, glass, ceramics) and certain heavy duty transport sectors (ships, aviation, long distance heavy vehicles). They are also expected to continue serving the needs of the electricity system as flexible power production. The role of gas in heating depends on the competition with other technologies, including heat pumps. The process to decarbonise the gas supply and to shift demand for gases to most needed uses must start already now. Achieving the 2030 renewable, energy efficiency and greenhouse-gas reduction targets in time is an important step in this process.

EASE is preparing a response to this consultation to improve the Hydrogen and Gas Market Directive and Regulation proposal in a way that is favourable to the energy storage sector.