Smart Sector Integration Package
The European Union energy market legislation, known as the third energy package, aims to improve the functioning of the internal energy market and resolve certain structural problems.
A update to the ‘package’ is expected in 2021. It will cover the following five areas: unbundling, independent regulators, ACER, cross-border cooperation and open and fair retail markets.
The European Union is exploring regulatory frameworks to promote renewable and decarbonised forms of gas. Questions will be raised on hydrogen, CCS and biogas, and what future for gas infrastructure. Other topics will include sector coupling, gas quality, LNG terminal access regulation, cross-border tariffs, and CO2 as a business case.
We advocate for a policy framework for the European gas market that will foster the creation of a strategic value chain for Carbon Capture Use and Storage, and the creation of a European market for clean hydrogen, starting with the progressive injection of decarbonised natural gas into the grid.
IOGP’s policy recommendations in a nutshell:
- A clear role and incentives for hydrogen from natural gas with CCUS are needed.
- It is key to ensure that the full gas chain can play its role, by enabling TSO/DSO/SSOs to participate in e.g. hydrogen and CO2 activities.
- 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.
- Avoid market distortions to accommodate new gases.