19.11.2024

ACER identifies need for higher consistency in European gas and hydrogen network plans

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ACER identifies need for higher consistency in European gas and hydrogen network plans

What is it about?

Natural gas and hydrogen network developments are instrumental for achieving EU’s decarbonisation goals, ensuring natural gas security of supply and fostering the hydrogen market. Consistency in network planning at European and national levels promotes efficient network development.

Every two years, ACER evaluates how well national gas and hydrogen Network Development Plans (NDPs) align with the EU-wide Ten-Year Network Development Plan (EU TYNDP).

What is in ACER’s latest Opinion?

ACER’s latest Opinion (covering 2023-2024) reveals two main trends:

  • Growing consistency in gas network planning: there is a modest yet encouraging trend towards aligning national gas NDPs with the EU TYNDP. Key findings suggest:
    • A shift towards biennial gas NDP updates to align with EU TYNDP timeline.
    • Consolidated network operators’ plans published at the Member State level instead of separate publications from each operator.
    • More scenario planning processes that jointly consider gas and electricity sectors.
    • NDPs’ increased focus on integrating low-carbon and renewable gases, along with decommissioning and repurposing projects.
  • Emerging hydrogen network planning practices: several countries have developed hydrogen strategies, legal frameworks, and specific hydrogen planning activities.
    • There is a low but growing consistency in hydrogen TYNDP projects included in the NDPs (rising from 17% in 2022 to 33% in 2024).

What does ACER recommend?

To improve consistency of NDPs:

To improve consistency of EU TYNDPs:

  • Provide detailed information on costs and, where possible, on monetised benefits, following electricity TYNDP practices.
  • Improve planning to prevent recurrent delays in the TYNDP development and release.
    • Ensure relevant projects appear in both NDPs and TYNDPs.
    • Synchronise expected market developments with a prudent assessment of infrastructure needs.

What are the next steps?

Member States and European Network of Transmission System Operators for Gas (ENTSOG) are expected to implement the new provisions set out by the Hydrogen and Decarbonised Gas Package. ACER encourages them to consider the recommendations of this Opinion to increase consistency in future national and European NDPs.

The next ACER Opinion will be published in 2026.

For a deeper understanding of the European hydrogen landscape and market developments, check out our Market Monitoring Report on European hydrogen markets, published today.