Decarbonised gases

2022 ACER-CEER Market Monitoring Report - monitoring the gas wholesale markets in 2021

This new Decarbonised Gases Volume describes the current state of EU decarbonised gases and hydrogen, and it examines the regulatory provisions and market context that may drive their evolution in the mid-term.

In particular, it looks at:

  • Renewable and low carbon gases production, consumption and price levels, as well as their prospects from now until 2050;
  • Key regulatory provisions governing the access of decarbonised gases to the market; and
  • Infrastructure expansion required to facilitate the use of biomethane and hydrogen.

Decarbonised gases

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Report

What are the main findings?

  • Current production of renewable and low carbon gases is modest relative to future policy expectations;
  • Production goals have been accelerated as a result of the supply diversification efforts due to the Russian invasion of Ukraine in 2022;
  • Numerous challenges are being identified that may hinder the expansion of decarbonised gases and hydrogen production, including the need for:
    • improving infrastructure interconnections,
    • developing greater end-use demand,
    • new infrastructure investments; and
  • Energy regulators see the need to clarify the regulatory, financial and technical aspects in time to ensure gas sector decarbonisation and clean hydrogen sector development.

Key recommendations

The Report includes a set of recommendations on how to facilitate the access of decarbonised gases to the market and how to strike a balance between enabling a decarbonised gases market and ensuring regulatory certainty. 

The main regulatory recommendations can be grouped into six areas:

  • Technical rules – quality of gas must be defined;
  • Market rules – access to networks should be facilitated;
  • Access conditions – appropriate tariffing arrangements needed;
  • Participation – identification of the appropriate bodies to undertake new roles needed;
  • New investments – frameworks must be defined;
  • Support – early phase technologies need to be identified.

Access the Decarbonised Gases Volume.