The regulatory approach to power-to-gas facilities

Abstract

“Clean hydrogen”, one of the main pillars of the EU decarbonization strategy, will be mostly produced by power-to-gas facilities. The regulatory and ownership rules applicable to power-to-gas facilities are to be defined. A competitive setting is to be preferred. However, in an initial period, in case the market were not to show sufficient interest, the involvement of TSOs/DSOs to kick-start the green hydrogen sector could be considered. One possibility for such an involvement could be an approach similar to that envisaged in the Clean Energy Package for electric vehicle charging and electricity storage facilities. This Policy Brief proposes a variant of that approach that would introduce competition in the production and (wholesale) supply of green hydrogen, even while power-to-gas facilities are operated by TSOs/DSOs.