“Today's decision is a great success for municipal utilities and for a successful hydrogen ramp-up in Germany”, said a VKU spokesperson on the EU Commission's decision on 11 April. “A business separation between gas and hydrogen networks would have made it almost impossible for many municipal utilities to initiate an investment-proof transformation of the gas infrastructure and thus organise the production and distribution of hydrogen.
In addition, the approximately 1.8 million industrial and commercial customers connected to the gas distribution network in Germany would have been deprived of an elementary option to reduce their CO2 emissions. After all, many of these customers, particularly in the manufacturing sector, will continue to rely on gaseous energy sources in the future.”
Following the vote in the European Parliament, the Council of Ministers still has to formally adopt the political agreement. The Directive and Regulation of the EU gas/H2 internal market package can then be published in the Official Journal of the EU. The implementation of the directive will then be subject to national law.
Electricity market reform also approved by EU Parliament
“We see many elements as positive. First and foremost, the fact that the EU is sticking to the merit order system and thus the basic mechanisms of the electricity market”, said a VKU spokesperson on the European Commission's decision. “The current market model has served the integration of the European electricity market well. The merit order is a key element for effective and efficient pricing and therefore for the utilisation planning of power plants.”
The European safeguarding of so-called capacity mechanisms remains open. “In order for municipal utilities to maintain a secure supply despite volatile renewable energies, it is crucial that not only the energy produced is appropriately remunerated, but also - and much more strongly and differently than before - the provision of reliable generation capacity”, the spokesperson continued.
“In a capacity market, suppliers are therefore rewarded for being on standby like a fire brigade: They stand ready with power plant capacities to step in within minutes during 'dark doldrums'. However, investments in the construction of power plants and storage facilities that only run for a few hours a year are hardly feasible if they have to be amortised by the peak load prices that occur during these hours.” Incentives for the necessary investments would be “attractive legal framework conditions and planning security”.
