Energy System Integration
The EU energy market legislation, known as the third energy package, aims to improve the functioning of the internal energy market and resolve certain structural problems.
The EU is now exploring regulatory frameworks to promote renewable and low-carbon forms of gas. Questions will be raised on hydrogen, CCUS and biogas, and the future of gas infrastructure. Other topics will include sector coupling, gas quality, LNG terminal access regulation, cross-border tariffs, and CO2 as a business case. Updates to the third energy package as well as to other relevant energy and climate policies are therefore expected in 2021.
IOGP advocates for a policy framework in which the European gas market can foster a strategic value chain for CCUS, and the creation of a European market for renewable and low-carbon hydrogen, starting with the progressive injection of renewable and low-carbon gases into the grid.
IOGP’s policy recommendations in a nutshell:
- A clear role and incentives for low-carbon hydrogen from natural gas with CCUS are needed.
- It is key to ensure that the full gas value chain can play its role, by enabling TSOs/DSOs/SSOs to participate in e.g. hydrogen and CO2 initiatives.
- The competitiveness of gas markets should be enhanced, e.g. by developing additional gas hubs and infrastructure, and greater trading liquidity in the parts of Europe which currently lack it.
- Market distortions should be avoided while new gases are accommodated.