Next event: Text adopted by Parliament, 1st reading/single reading 2024/04/11 more...
- Debate in Parliament 2024/04/11
- Decision by Parliament, 1st reading 2024/04/11
- Approval in committee of the text agreed at 1st reading interinstitutional negotiations 2024/01/23
- Coreper letter confirming interinstitutional agreement 2023/12/20
- Text agreed during interinstitutional negotiations 2023/12/20
- Committee decision to enter into interinstitutional negotiations confirmed by plenary (Rule 71) 2023/03/15
- Committee decision to enter into interinstitutional negotiations announced in plenary (Rule 71) 2023/03/13
- Committee report tabled for plenary, 1st reading 2023/02/16
- Vote in committee, 1st reading 2023/02/09
- Committee decision to open interinstitutional negotiations with report adopted in committee 2023/02/09
- Specific opinion 2023/02/02
- Opinion on the recast technique 2022/12/20
- Committee of the Regions: opinion 2022/10/12
- Contribution 2022/08/08
- Amendments tabled in committee 2022/07/14
- Amendments tabled in committee 2022/07/14
- Committee draft report 2022/06/22
- Specific opinion 2022/06/03
- Economic and Social Committee: opinion, report 2022/05/18
- Committee referral announced in Parliament, 1st reading 2022/02/17
- BUZEK Jerzy (EPP) appointed as rapporteur in ITRE 2022/02/16
- LINS Norbert (EPP) appointed as rapporteur in AGRI 2022/02/02
Progress: Awaiting Council's 1st reading position
Role | Committee | Rapporteur | Shadows |
---|---|---|---|
Lead | ITRE | BUZEK Jerzy ( EPP) | TOIA Patrizia ( S&D), GROŠELJ Klemen ( Renew), TOUSSAINT Marie ( Verts/ALE), BORCHIA Paolo ( ID), KRASNODĘBSKI Zdzisław ( ECR), PEREIRA Sandra ( GUE/NGL) |
Committee Opinion | BUDG | ||
Committee Opinion | ECON | ||
Committee Opinion | ENVI | ||
Committee Opinion | IMCO | ||
Committee Opinion | AGRI | LINS Norbert ( EPP) | |
Committee Recast Technique Opinion | JURI | AUBRY Manon ( GUE/NGL) |
Lead committee dossier:
Legal Basis:
RoP 110, TFEU 194-p2
Legal Basis:
RoP 110, TFEU 194-p2Subjects
Events
The Committee on Industry, Research and Energy adopted the report by Jerzy BUZEK (EPP, PL) on the proposal for a regulation of the European Parliament and of the Council on the internal markets for renewable and natural gases and for hydrogen (recast).
As a reminder, in line with the REpowerEU targets, by the end of 2030, Member States should ensure collectively at least 35 billion cubic meters of sustainable biomethane. This would be produced and injected into the natural gas system, annually, with the aim of replacing 20% of Russian natural gas imports with a sustainable, cheaper and locally produced alternative.
The committee responsible recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the proposal as follows:
Subject matter and scope
This Regulation:
- sets non-discriminatory rules for access conditions to natural gas and hydrogen systems taking into account the special characteristics of national and regional markets with a view to ensuring the proper functioning of the internal market in gas as well as to contribute to the long-term flexibility of the electricity system;
- encourages preventive measures reducing fossil gas demand through the implementation of the energy efficiency first principle leading to energy savings, increased direct electrification as part of a fully integrated energy system, and increased use of renewable sources of energy, and contributes to the prudent and rational use of natural resources and the achievement of the Union’s climate and energy targets; and
- facilitates the emergence of a well-functioning and transparent wholesale market with a high level of security of supply in gas and provides mechanisms to harmonise the network access rules for cross-border exchanges in gas.
Diversification of gas supplies obligation
To safeguard the security of energy supply and the essential security interests of the Union in line with the objectives of the REPowerEU Plan, the committee suggested that Member States should diversify their gas supplies and ensure that imports of natural gas as well as of renewable gas and low-carbon gas through pipelines and LNG terminals do not originate from the Russian Federation.
Upscaling of renewable gas and low-carbon gas in coal and carbon-intensive regions
The Commission should support and provide incentives to encourage the penetration of renewable gas and low-carbon gas, in particular hydrogen and biomethane, into the Union energy system, in particular in coal and carbon-intensive regions.
Mainstreaming biomethane in the gas system
According to Members, in order to support the sustainable production of biomethane to safeguard the security of gas supply in the Union and decrease dependence on fossil natural gas imports, Member States should, by 31 December 2030, ensure collectively that at least 35 bcm of sustainable biomethane that complies with Directive (EU) 2018/2001 is produced and injected into the natural gas system at the level of the transmission system operators or of the distribution system operators.
Enhanced purchasing scheme
Members proposed strengthening the joint gas purchasing scheme and making all gas contracts in the EU more transparent.
Tariff discounts
The report suggested that regulatory authorities should assess whether to offer support to lower grid connection costs and fees for renewable gas and low-carbon gas production facilities.
Management mechanism
The revised Regulation should ensure that excessive movements in prices within a trading day are prevented. The intra-day volatility management mechanism should be based on the observed market price at regular intervals. Price limits should be set up by trading venues taking into account the specificities of each relevant energy-related commodity derivative, the liquidity profile of the market for such derivative and its volatility profile.
ENTSOG
Members proposed to reform the European Network of Transmission System Operators for Gas (ENTSOG) to also cover Hydrogen Network Operators. The new ENTSOG&H would therefore also be responsible for the EU ten-year network development plan for gas and hydrogen networks. The development plan should include the modelling of the integrated network, scenario development, a European supply adequacy outlook, a climate impact assessment and an assessment of the resilience of the system.
PURPOSE: to present an ambitious transition of the gas sector towards low-carbon and renewable gases by revising the internal markets for renewable and natural gases and for hydrogen.
PROPOSED ACT: Regulation of the European Parliament and of the Council.
ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.
BACKGROUND: the European Green Deal puts the EU on a path to climate neutrality by 2050, which requires significantly higher shares of renewable energy sources in an integrated energy system. Currently, natural gas represents 95% of the gaseous fuels consumed in the EU and accounts for 25% of the EU’s total energy consumption. While the share of natural gas will decrease progressively, biomethane, synthetic methane and hydrogen are expected to become more relevant. However, these alternatives to natural gas face a number of regulatory barriers and are not covered by current energy security arrangements.
The present initiative, as well as the proposed directive on common rules for the internal markets in renewable and natural gases and in hydrogen, aim to revise existing EU legislation and create a new framework for an internal hydrogen market to achieve a cost efficient clean hydrogen economy.
CONTENT: this proposed Regulation sets non-discriminatory rules for access conditions to natural gas and hydrogen systems taking into account the special characteristics of national and regional markets with a view to ensuring the proper functioning of the internal market in gases. It facilitates the emergence of a well-functioning and transparent wholesale market with a high level of security of supply in gases and provides mechanisms to harmonise the network access rules for cross-border exchanges in gases.
Objectives
The revised proposal includes objectives such as the setting of harmonised principles for tariffs, or the methodologies underlying their calculation, for access to the natural gas network, the establishment of third-party access services and harmonised principles for capacity-allocation and congestion-management, the determination of transparency requirements, balancing rules and imbalance charges, and the facilitation of capacity trading.
Customer engagement
For new gases to play a full role in the energy transition, the retail market rules should empower customers to make renewable and low carbon choices. Moreover, to be able to make sustainable energy choices, customers need sufficient information on their energy consumption and origin, as well as efficient tools to participate in the market. With this in mind, the proposal lays down the rights for the consumer such as basic contractual rights, switching rights and fees, and rules on comparison tools, active customers, and citizen energy communities. It also contains provisions on billing, smart and conventional metering, and data management.
It also contains provisions on single points of contact, right to out-of-court dispute settlement, vulnerable customers, and retail markets.
Hydrogen infrastructure and hydrogen markets
The current regulatory framework for gaseous energy carriers does not address the deployment of hydrogen as an independent energy carrier via dedicated hydrogen networks. The creation of a regulatory framework at EU-level for dedicated hydrogen networks and markets would foster the integration and interconnection of national hydrogen markets and networks. Barriers also exist for the development of a cost-effective, cross-border hydrogen infrastructure and competitive hydrogen market, a prerequisite for the uptake of hydrogen production and consumption. The present proposal seeks to address all of these deficiencies.
Renewable and low-carbon gases in the existing gas infrastructure and markets
The new rules intend to facilitate the access of renewable and low-carbon gases to the existing gas grid, by removing tariffs for cross-border interconnections and lowering tariffs at injection points. They also create a certification system for low-carbon gases. This will ensure a level playing field in assessing the full greenhouse gas emissions footprint of different gases and allow Member States to effectively compare and consider them in their energy mix.
Network planning
The proposal foresees that the national network development plans should be based on a joint scenario for electricity, gas and hydrogen. It should be aligned with National Energy and Climate Plans, as well as EU-wide ten-year network development plan. Gas network operators have to include information on infrastructure that can be decommissioned or repurposed, and there will be separate hydrogen network development reporting to ensure that the construction of the hydrogen system is based on a realistic demand projection.
Security of supply and storage
To contribute to a timely response to energy crises at EU level, this proposal includes specific measures to improve cooperation and resilience, notably to ensure a more effective and coordinated use storage and operational solidarity arrangements. The measures are targeted to reinforce the resilience of the EU energy system against future shocks in a timely manner.
The measures proposed require Member States to explicitly make storages part of their security of supply risks assessments at regional level . The proposal also enables voluntary joint procurement by Member States to have strategic stocks, in line with the EU competition rules.
Measures were also introduced to improve the transparency and access to storages, address cybersecurity risks of gas and facilitate bilateral solidarity arrangements between Member States in case of crisis.
A new governance structure, called the ‘ European Network of Network Operators for Hydrogen ’ (ENNOH) will be created to promote the development of dedicated hydrogen infrastructure, cross-border coordination and the construction of an interconnection network.
Documents
- Text adopted by Parliament, 1st reading/single reading: T9-0282/2024
- Debate in Parliament: Debate in Parliament
- Decision by Parliament, 1st reading: T9-0282/2024
- Approval in committee of the text agreed at 1st reading interinstitutional negotiations: PE757.969
- Coreper letter confirming interinstitutional agreement: GEDA/A/(2024)000012
- Text agreed during interinstitutional negotiations: PE757.969
- Committee report tabled for plenary, 1st reading: A9-0032/2023
- Specific opinion: PE742.388
- Opinion on the recast technique: PE740.527
- Committee of the Regions: opinion: CDR1522/2022
- Contribution: COM(2021)0804
- Amendments tabled in committee: PE735.482
- Amendments tabled in committee: PE735.483
- Committee draft report: PE734.108
- Specific opinion: PE719.661
- Economic and Social Committee: opinion, report: CES6401/2021
- Document attached to the procedure: SEC(2021)0431
- Document attached to the procedure: SWD(2021)0455
- Document attached to the procedure: EUR-Lex
- Document attached to the procedure: SWD(2021)0456
- Document attached to the procedure: EUR-Lex
- Document attached to the procedure: SWD(2021)0457
- Document attached to the procedure: EUR-Lex
- Document attached to the procedure: SWD(2021)0458
- Legislative proposal published: COM(2021)0804
- Legislative proposal published: EUR-Lex
- Document attached to the procedure: SEC(2021)0431
- Document attached to the procedure: SWD(2021)0455
- Document attached to the procedure: EUR-Lex SWD(2021)0456
- Document attached to the procedure: EUR-Lex SWD(2021)0457
- Document attached to the procedure: EUR-Lex SWD(2021)0458
- Economic and Social Committee: opinion, report: CES6401/2021
- Specific opinion: PE719.661
- Committee draft report: PE734.108
- Amendments tabled in committee: PE735.482
- Amendments tabled in committee: PE735.483
- Committee of the Regions: opinion: CDR1522/2022
- Opinion on the recast technique: PE740.527
- Specific opinion: PE742.388
- Coreper letter confirming interinstitutional agreement: GEDA/A/(2024)000012
- Text agreed during interinstitutional negotiations: PE757.969
- Text adopted by Parliament, 1st reading/single reading: T9-0282/2024
- Contribution: COM(2021)0804
History
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