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.

select country:

Is it a barrier?

Yes

Type of Barrier

Structural barriers, Operational barriers, Economic barriers, Regulatory gap

Assessment Severity

3

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

Yes

Question 2 Which is the responsible authority/legal entity for the permission of the connection/injection of SNG from hydrogen in the gas grid?

same as for category 7, application 1

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?

same as for category 7, application 1

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)?

same as for category 7, application 1

Question 5 Are there specific restrictions/permissions for the transport of SNG from hydrogen other than “concentration” and “quality”, if yes which ones?

same as for category 7, application 1

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?

same as for category 7, application 1

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?

This is hypothetical for the UK as the current legal limit for H2 concentration in the gas stream is 0.1% regardless of SNG or other sources

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?

In principle no –but this is hypothetical for the UK as the current legal limit for H2 concentration in the gas stream is 0.1% regardless of SNG or other sources

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?

In principle no –but this is hypothetical for the UK as the current legal limit for H2 concentration in the gas stream is 0.1% regardless of SNG or other sources

Describe the comparable technology and its relevance with regard to hydrogen

Bio–gas

National legislation:

Gas Act 1996
Privatisation and unbundling of the gas industry; limiting the market power of British Gas; extending competition to industrial and domestic markets to obtain benefits of competition in terms of market entry and in benefits to customers
Gas Safety Management Regulations 1996
Pipeline Safety Regulations 1996
Gas pipeline integrity and securing safety in the design, construction, installation, operation, maintenance and decommissioning of pipelines. Establishing a safe operations framework that applies to pipelines in Great Britain and to those in territorial waters and the UK Continental Shelf
Utilities Act 2000
Provided for the establishment and functions of the Gas and Electricity Markets Authority and the Gas and Electricity Consumer Council; to amend the legislation regulating the gas and electricity industries; and for connected purposes – subsequently to become the Office For Gas & Electricity Markets (OFGEM
UK Health & Safety Executive 1996
Creating the UK Statutory Agency legally responsible for applying all relevant EC Directives relating to the design, installation and operation of facilities and their operative workforce personnel

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.