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

This LAP concerns the injection of hydrogen into the gas grid at the TSO level and the legal framework status covering authorised bodies and varying hydrogen concentration levels in the TSO transmission system along with potential changes to the regulatory framework to support enhanced hydrogen injection and utilisation

Glossary:

The existing national legal framework for the DSO 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
Structural barriers, Regulatory gap
Assessment Severity

Questions:

Question 1 Which is the responsible authority/legal entity for the permission of the connection/injection of hydrogen in the gas grid?
Ministry of Economic Affairs (through gas quality regulations).
Question 2 What is permitted or restricted according to national legislation under your responsibility as DSO regarding the transmission of pure hydrogen and mixtures of hydrogen and natural gas.
For DSO: only transportation of natural gas, with max. 0,5% hydrogen in natural gas. The DSO is not allowed to convert this, it is an exclusive task for the TSO or supplier.
Question 3a - Is there a maximum concentration defined that you are allowed to transport as a DSO? (e.g. are you allowed to transport 100% hydrogen)
a - For DSO no. As long as every end user receives max. 0,5%.
Question 3b - 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)?
b - For DSO, as long as the maximum level does not exceed 0,5% at the end user, it is acceptable. In reality: can a producer guarantee that if they inject more than 0,5% that it is never exceeded at the end user? Almost always the answer is no. If at entry level 0,5% is not exceeded, you can be sure it will be fine at the end user. But in a formal way Dutch regulations allow injection of off–spec gas as long as the specs are ok at the end user. The DSO has no obligation to offer blending services. Moreover: DSO is not allowed to perform conversion (this is an exclusive task for the TSO).
Question 3c - 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)
c - DSO is not allowed to perform conversion (this is an exclusive task for the TSO).
Question 4 If the concentration for injection is different than the maximum allowed concentration (question 2 and 3) question please answer this question What is the maximum allowed concentration in your country for injection in the gas grid on transmission level?
For DSO in principle unlimited as long as the max. level of 0,5% at the end user is never exceeded.
Question 5 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.
No, not for DSO.
Question 6 Are there specific restrictions/permissions for the transport of hydrogen other than “concentration” and “quality”, if yes which ones?
No, not for DSO.
Question 7 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)?
Yes, this is applicable for the DSO.
Question 8 Which part of the connection facility (the injection installation is part of the connection facility) is owned by or under the responsibility of the DSO?
For the DSO: the injection installation is not owned by the DSO; it is owned by the supplier.
Question 9 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?
As DSO; A discussion about this subject might be similar to the biomethane situation. By having control of the injection installation, part of responsibility for gas quality / feed–in of it will shift to the DSO. Thus that is a legal reason.
Question 10 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?
Since the TSO can perform quality conversion, it has more options to accepts hydrogen than the DSO.
Question 11 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?
For DSO: there are no specific rules, only as a part of natural gas.
Question 12 Is it foreseen to review the current regulation to consider hydrogen injection into natural gas network and if yes on which term?
Not foreseen on a short term (for the DSO).
Describe the comparable technology and its relevance with regard to hydrogen
Biomethane

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.