Legal framework: permissions and restrictions (and Ownership constraints (unbundling))

This LAP concerns the legal framework status covering authorised bodies overseeing and involved with the injection of hydrogen and varying hydrogen concentration levels in the TSO high pressure gas transmission system, along with potential changes to the regulatory framework to support enhanced hydrogen injection and utilisation

Glossary:

Legal framework: permissions and restrictions (and Ownership constraints (unbundling)) represent the existing national legal framework for the TSO to carry out hydrogen activities, which is normally restricted to natural gas. Ownership constraints refer to the constraints related to ownership associated with the process of injecting
Is it a barrier?
Yes
Type of Barrier
Regulatory gap
Assessment Severity
3

Questions:

Question 1 Which is the responsible authority/legal entity for the permission of the connection/injection of hydrogen in the gas grid?
At present there is no legal basis (law or regulation) for injection of hydrogen in the gas grid, but as the regulatory Authority for the electricity, gas and water market has responsibility over the regulation of the gas grid, it is likely that it will have responsibility on injection of hydrogen as well
Question 2 What is permitted or restricted according to national legislation under your responsibility as TSO regarding the transport of pure hydrogen and mixtures of hydrogen and natural gas.
SNAM Rete Gas, the Italian gas Transport system operator, works under the provisions of the Gas grid Code, submitted to the Authority for the electricity, gas and water market on 14 November 2002 and continuously updated ever since. The current version (revision LXIII) includes provisions concerning the qualitative characteristics of the gas injected to the grid, including allowed presence of hydrogen, but only with reference to bio–methane fed to the grid. In this case the maximum allowed concentration of hydrogen in bio–methane is 0.5% by volume. In addition, the UNI Standard Regulation UNI/TR 11537:2014 and UNI EN 16723–2 provides indications to the injection of bio–methane in the natural gas network
Question 3 Is there a maximum concentration defined that you are allowed to transport as a TSO? (e.g. are you allowed to transport 100% hydrogen)
As mentioned in the previous reply, this case is not foreseen in the Italian legislation other than for the hydrogen concentration in the bio–methane injected into the grid.
Question 4 What is the maximum allowed concentration in your country for injection in the gas grid on transmission level?
This case is not foreseen in the Italian legislation other than for the hydrogen concentration in the bio–methane I injected into the grid: the maximum allowed concentration in this case is 0.5% by volume.
Question 5 In case the maximum hydrogen concentration in your transmission grid (system) is less than 100%, is it allowed to inject pure hydrogen- 100%? into gas grid on transmission level (up to the allowed concentration)? If no, who is responsible for the blending with natural gas? Is there an obligation for the TSO to provide the necessary natural gas for blending the hydrogen (with several EU Directives transposed into national legislations the functions of gas grid operator and natural gas supplier are separated)
This case is not foreseen in current Italian legislation
Question 6 Are there specific requirements for increasing or decreasing the admissible threshold of hydrogen concentration (upstream and downstream networks, infrastructure elements and appliances with lower tolerance)? If yes: please describe.
There is no provision on this in current Italian legislation
Question 7 Are there specific restrictions/permissions for the transport of hydrogen other than “concentration” and “quality”, if yes which ones?
There is no provision on this in current Italian legislation
Question 8 If it can be guaranteed that the gas is on the required quality specification (on spec) at the next customer, is it allowed to feed in off-spec gas (read: a higher concentration of Hydrogen)?
No
Question 9 Which part of the connection facility (the injection installation is part of the connection facility) is owned by or under the responsibility of the TSO?
n/a This case is not foreseen in the Italian legislation other than for the hydrogen concentration in the bio–methane injected into the grid: the maximum allowed concentration in this case is 0.5% by volume.
Question 10 As TSO, do you see legal and administrative restrictions with regard to the ownership of your part of the connection facility (the injection installation is part of the connection facility) of hydrogen into the grid?
There is no provision on this in current Italian legislation
Question 11 Is there a difference in legal and administrative restrictions between connections for hydrogen injection into TSO and DSO-networks? If so could you please specify the differences?
No difference
Question 12 Are there specific national (add-on) restrictions for the connection/injection of hydrogen in TSO networks compared to the connection/injection of natural gas? If yes: please name them. Are there other requirements for the injection of H2NG-blends compared to pure Hydrogen?
There is no provision on this in current Italian legislation There is no provision on this in current Italian legislation
Question 13 Is it foreseen to review the current regulation to consider hydrogen injection into natural gas network and if yes on which term?
There are working groups at the international level tasked with examining this possibility, and studying how to regulate the matter. SNAM takes part in this work.
Describe the comparable technology and its relevance with regard to hydrogen
Bio–methane

National legislation:

EU Legislation:

  • 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.
  • Regulation 715/2009 on conditions for access to the natural gas transmission networks
    Regulation 715/2009 sets non-discriminatory rules for access conditions to (a) natural gas transmission systems; (b) LNG facilities and storage facilities taking into account the special characteristics of national and regional markets

    To achieve this, it sets harmonised principles for tariffs, or the methodologies underlying their calculation, for access to the network, but not to storage facilities, 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.
  • Regulation (EC) No 713/2009 of the European Parliament and of the Council of 13 July 2009 establishing an Agency for the Cooperation of Energy Regulators
    Article 1 Project matter and scope
    This regulation aims at:
    (a) setting non–discriminatory rules for access conditions to natural gas transmission 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;

    Article 8 “Tasks as regards terms and conditions for access to and operational security of cross border infrastructure
  • Commission Regulation (EU) 2015/703 of 30 April 2015 establishing a network code on interoperability and data exchange rules
    The network code on interoperability aligns the complex technical procedures used by network operators within the EU, and possibly with network operators in the Energy Community and other countries neighbouring the EU.Article 7, Measurement principles for gas quantity and quality. In addition to interconnection points, Article 17 shall apply to other points on transmission network where the gas quality is measured. Article 18 shall apply to transmission systems. This Regulation may also apply at entry points from and exit points to third countries, subject to the decision of the national authorities.