Market Consultation in Germany regarding the regulation of hydrogen networks

While the Austrian hydrogen strategy is still a long time coming, the German regulator BNetzA just recently executed on basis of the German hydrogen strategy already a public consultation regarding regulatory questions.

Central aspects in my view:

  • Blending of hydrogen into the gas network: potentially an interim solution (10-20%); but the target model are pure hydrogen networks
  • Market development: most likely a stepwise process; starting from (i) local islands via (ii) connection of these islands as well as production/import through cross-regional networks to (iii) mashed network similar to natural gas
  • Regulation: definitiely in case of abuse of market power; many consider regulation due to the tight schedule and for planning security reasons in any case as necessary. Best approach might by a “dynamic roll-out” of regulation based on the actual market development
  • Regulatory framework: for pragmatic reasons (again the reference to the tight schedule, etc.) application of the existing regulatory framework for network access, tariffication and unbundling of gas networks also for hydrogen; however, with differentation whereever necessary and appropriate
  • Network development planning: mixed views whether the planning should be stand-alone or integrated in the planning process for gas. In any case, there needs to be a close coordination
  • Tariffs: the majority is in favor of a cost-reflective differentation of costs related to gas and hydrogen networks. As a result of that, the scale-up of the hydrogen infrastructure may require support through public funding, etc.

Details: https://bit.ly/2J1PtoA

Picture source: Bundesnetzagentur

Leave a comment

Create a website or blog at WordPress.com

Up ↑