Legal status of power-to-gas plants and energy storage facilities (energy consumer or energy producer)

This LAP is concerned with implementation of Power to Gas facilities, covering energy consumption (electrolyser operation), energy storage (hydrogen or otherwise), and energy generation (from hydrogen or other storage means) and the extent to which the plant has legal recognition or constrained within the current legal context

Glossary:

Power to gas (also power-to-gas) (often abbreviated P2G) is a technology that converts electricity from renewable energy sources to hydrogen or methane. The renewable gas can be transported in the existing gas infrastructure, stored and then used in a range of applications. It is reconverted when in demand. Likewise, the direct use of hydrogen, for instance in the mobility sector or in refineries, is possible.
Power to Gas is a sectoral integration system solution with which renewable energy sources can be integrated into the energy supply system. Different technologies must interact seamlessly for the Power to Gas concept to work. The most important processes include electrolysis and methanation. Water electrolysis to generate hydrogen is the core process of the Power to Gas concept. Energy storage facilities are facilities which receive energy with the objective of storing it electrically, chemically, electro- chemically, mechanically or thermally and of making it available again for use at a later time
Is it a barrier?
Assessment Severity
NA

Questions:

EU Legislation:

  • Directive 2010/75/EU on industrial emissions (integrated pollution prevention and control (IED)
    The Directive, which applies to the production of hydrogen (production on an industrial scale by chemical or biological processing) (Annex I, point 4.2) contains inter alia:
    • Basic obligations of the operator (Article 11)
    • The content of permitting applications (Article 12)
    • Permitting Conditions (Article 14)
    • Emission limit values, (Article 15)
    • Monitoring requirements (Article 16)
    • Access to information and public participation (Article 24)

    The meaning of "production on an industrial scale by chemical or biological processing in Annex I section 4" has been clarified by the EU Commission, in support of transposition and implementation measures. :

    Annex I Section 4 (“chemical industry”) refers to “production on an industrial scale” and contains no quantitative capacity thresholds. The scale of chemical manufacture can vary from a few grams (of a highly specialised product), to many tonnes (of a bulk chemical product); yet both may correspond to “industrial scale” for that particular activity.

    Various criteria should be taken into account to decide whether production is “on an industrial scale”, including such factors as the nature of the product, the industrial character of the plant and machinery used, production volume, commercial purpose, production solely for own use, environmental impact. Such considerations should take account of the primary objective of the IED as expressed in Article 1 as to "prevent or, where that is not practicable, to reduce emissions into air, water and land and to prevent the generation of waste, in order to achieve a high level of protection of the environment taken as a whole", complemented by the general principle set in Article 11 (c) that "no significant pollution is caused".

    The fact that the activity is carried out for "commercial purposes" may be a strong indicator of "industrial scale", […] However, it may not be sufficient to use the “commercial purpose” of an activity as the sole determinant of "industrial scale". It may also be important to take into account the potential environmental impact of a production sequence.


    Directive 2010/75/EU established an integrated approach towards prevention and control. This integrated approach means that the permits must take into account the whole environmental performance of the plant, covering e.g. emissions to air, water and land, generation of waste, use of raw materials, energy efficiency, noise, prevention of accidents, and restoration of the site upon closure. The permit conditions including emission limit values must be based on the Best Available Techniques (BAT).
  • Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity
    Directive 2009/72/EC establishes common rules for the generation, transmission, distribution and supply of electricity, together with consumer protection provisions. It lays down the rules relating to the organisation and functioning of the electricity sector, open access to the market, the criteria and procedures applicable to calls for tenders and the granting of authorisations and the operation of systems. It also lays down universal service obligations and the rights of electricity consumers and clarifies competition requirements.


    Article 25 establishes the “Tasks of the distribution system operator” which include: ensuring the long-term ability of the system to meet reasonable demands for the distribution of electricity […] as well as to ensure that the system operator does not discriminate between system users or classes of system users including e.g. when setting rules for the charging of system users, etc. Article 25 allows, however to require the distribution system operator to give priority to generating installations using renewable energy sources or waste or producing combined heat and power.

    Article 32 sets the rules on “Third party access”: access to the transmission and distribution system, and LNG facilities shall be based on published tariffs, without discrimination between system users. The transmission or distribution system operator may refuse access where it lacks the necessary capacity. Duly substantiated reasons must be given for such refusal,
  • Directive 2009/73/EC concerning common rules for the internal market in natural gas
    Directive 2009/73/EC establishes common rules for the transmission, distribution, supply and storage of natural gas.

    Its provisions and obligations apply to Hydrogen Gas by virtue of Article 1 (2), which states that the rules established by this Directive for natural gas, including LNG, shall also apply in a non–discriminatory way to biogas and gas from biomass or other types of gas in so far as such gases can technically and safely be injected into, and transported through, the natural gas system.

    Article 25 establishes the “Tasks of the distribution system operator” which include: ensuring the long-term ability of the system to meet reasonable demands for the distribution of gas […];shall provide any other distribution, transmission, LNG, and/or storage system operator with sufficient information […] as well as to ensure that the system operator does not discriminate between system users or classes of system including, including e.g. when setting rules for the charging of system users, etc

    Article 32 sets the rules on “Third party access”: access to the transmission and distribution system, and LNG facilities shall be based on published tariffs, applicable to all eligible customers, including supply undertakings, and applied objectively and without discrimination between system users.