Hydrogen and Gas Market Decarbonisation Package: Will it be enough?

The publication of the Hydrogen and Gas Market Decarbonisation Package is an important milestone towards the decarbonisation of the European economy. The gas sector is an essential piece of a truly integrated energy system, and it needs to be decarbonised as soon as possible. The revision of the gas market rules should accelerate the transition and facilitate an increased introduction of renewable and low-carbon gases. These gases should help, among others, “increase the flexibility of the electricity system thanks to power-to-X technologies, strengthen security of supply by reducing dependence on natural gas imports and allow to store (and produce) electricity”, as pointed out by the European Commission in its Explanatory Memorandum.

“EUTurbines and EUGINE support the purpose of the package. However, we cannot help but wonder whether the proposed changes will be enough to deliver” stated Ralf Wezel, Secretary General of both organisations. “We need a predictable framework that sets a clear path towards the decarbonisation of the gas sector. For us, this would be best achieved through targets for quickly increasing the share of all types of renewable and low-carbon gases in the network. The lack of such measures in the Commission’s proposal may slow down the transition”, he continued.

On the use of renewable and low-carbon gases, he explained: “This year, we have seen again cases of longer periods during which fluctuating conditions prevented renewable capacities to fully deliver in many European countries. An electricity-dominated energy system needs reliable back-up generation, and gas power plants are the best available solution for this. These plants will be able to operate with renewable and low-carbon gases as soon as these become available in larger quantities. It is essential, therefore, that the future market rules allow hydrogen-ready power plants to access repurposed and new hydrogen infrastructure and that business models value decarbonised flexible and dispatchable power”, Ralf Wezel concluded.

EUGINE is the voice of Europe’s engine power plant industry. Our members are the leading European manufacturers of engine power plants and their key components. Engine power plants are a flexible, efficient, reliable and sustainable technology, helping to ensure security of electricity supply and providing (renewable) electricity and heat. For more information, please see www.eugine.eu