ACER – CEER Decarbonisation Gases 2021 Market Monitoring Report Volume Highlights Challenges to Scaling Up Biomethane and Hydrogen Production | Media Pyro

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ACER – CEER Decarbonized Gases Volume 2021 Market Monitoring Report highlights the challenges of scaling up biomethane and hydrogen production.

The EU Agency for the Cooperation of Energy Regulators (ACER) and the Council of European Energy Regulators (CEER) publish the 2021 Decarbonisation Gas Market Monitoring Report (MMR).

What is the Volume about?

This new Decarbonized Gas Volume describes the current state of decarbonized gases and hydrogen in the EU, and examines the regulatory provisions and market context that may drive their evolution in the medium term.

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It looks in particular at:

  • levels of production, consumption and prices of renewable and low-carbon gas, as well as their prospects from now until 2050;
  • Key regulatory provisions governing the access of decarbonised gases to the market; and
  • Infrastructure expansion is needed to facilitate the use of biomethane and hydrogen.

What are the main results?

  • Current renewable and low carbon gas production is small relative to future policy expectations;
  • Production targets were accelerated as a result of supply diversification efforts due to the Russian invasion of Ukraine in 2022;
  • Many challenges are being identified that could hinder the expansion of decarbonisation and hydrogen production, including the need to:
    • improve infrastructure interconnections,
    • develop greater end-use demand,
    • new infrastructure investments; and
  • Energy regulators see the need to clarify the regulatory, financial and technical aspects in time to ensure the decarbonisation of the gas sector and the development of the clean hydrogen sector.

Key recommendations

The Report includes a series of recommendations on how to facilitate decarbonised gas market access and how to strike a balance between enabling a decarbonised gas market and ensuring regulatory certainty.

The main regulatory recommendations can be grouped into six areas:

  • Technical rules – the quality of the gas must be defined;
  • Market rules – access to networks should be facilitated;
  • Access conditions – appropriate tariff arrangements are required;
  • Participation – identification of the appropriate bodies to undertake new roles required;
  • New investments – frameworks must be defined;
  • Support – early stage technologies must be identified.

READ the latest news shaping the hydrogen market at Hydrogen Central

ACER-CEER Decarbonized Gases 2021 Market Monitoring Report Volume Highlights Challenges to Increasing Biomethane and Hydrogen Production November 3, 2022

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