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

This LAP concerns the permitting framework and processes (or restrictions) on hydrogen based SNG (via methanation) and injection at varying concentrations into the gas grid at the TSO or DSO level, along with technical requirements for and oversight of local grid connections

Glossary:

The existing national legal framework for the TSO/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?
Neutral
Assessment Severity
NA

Questions:

Question 1 Is the legislation with regard to injection of Methane (SNG) via methanation from hydrogen the same as for hydrogen? If yes, question 2-9 are the same as for category 7, application 1: injection of hydrogen in the gas grid and do not have to be answered
Hydrogen injection NG has the limit of 0,5%. The Sabatier gas (SNG from hydrogen) is allowed up till the quality level in accordance with the Ministrial decree (MR). This means that blending is needed because the Gas quality in the MR is not 100% CH4. For the Netherlands the CH4 percentage in the NG is ca. 90%). Also e.g. odorization and drying (in compliance with the MR) is additionally needed.
Question 2 Which is the responsible authority/legal entity for the permission of the connection/injection of SNG from hydrogen in the gas grid?
Ministry of Economic Affairs (through gas quality regulations).
Question 3 What is permitted or restricted under your responsibility as TSO/DSO regarding the transport of SNG from hydrogen and mixtures of SNG from hydrogen and natural gas?
For DSO (not TSO): only transport of natural gas. The DSO is not allowed to blend. This means that the supply of the quality of the gas has to be in accordance to the MR. Quality in equals quality out.
Question 4 Is there a maximum defined that you are allowed to transport as a TSO/DSO? (e.g. are you allowed to transport 100% SNG from hydrogen)?
For DSO (not TSO): Legally the requirement is that the gas quality at the exit to the end–user has to be in accordance with the MR however in practice this means that quality in equals quality out. In practice it can not be guaranteed that there will be blending in the gas network.)
Question 5 Are there specific restrictions/permissions for the transport of SNG from hydrogen other than “concentration” and “quality”, if yes which ones?
No, not for DSO.
Question 6 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/DSO?
For the DSO: the injection installation (in the Netherlands called ‘Poortwachter’) is not owned by the DSO. It is owned by the supplier).
Question 7 As TSO/DSO, do you see legal and administrative restrictions with regard to the ownership of your part of the connection facility (the injection installation is related to the connection facility) of SNG from hydrogen into the grid?
A discussion about this subject might be similar to the biomethane situation. By having control over the injection installation, part of responsibility for gas quality / feed–in of it will shift to the DSO. So a legal reason.
Question 8 Is there a difference in legal and administrative restrictions between connections/injecting SNG from hydrogen 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 accept hydrogen than the DSO.
Question 9 Are there specific national (add-on) restrictions for the connection/injection of SNG from hydrogen in TSO/DSO networks compared to the connection/injection of natural gas?
For DSO: there are no specific rules, only as part of natural gas.
Describe the comparable technology and its relevance with regard to hydrogen
Injection of Biomethane is an example; the requirements are the same as for injection of hydrogen or Sabatier gas; it has to be in accordance with the MR.

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.