Agreement on the gas and hydrogen package: a framework for biomethane, hydrogen and network tariffs

The European Parliament and the Council of the EU reached a provisional agreement on 8 December 2023 on the regulation on markets for renewable gases, natural gas and hydrogen, completing the gas market decarbonisation package; agreement on the directive was reached in late November. The transitional period during which hydrogen market rules may be more lenient was set at the end of 2032, whereas the Council had proposed 2035. For biomethane, the package sets out rules on connection, tariffs and certification.

What is changing

The package rewrites the directive and regulation on the internal gas market to adapt them to the move away from fossil fuels. The following matter most for the renewable gas industry:

• Grid access: easier connection of biomethane and low-carbon gas installations,
• Tariffs: the possibility of reducing network charges for injecting renewable and low-carbon gases into the system,
• Certification: common rules for low-carbon gases, complementing the system of guarantees of origin,
• Network planning: taking renewable gases and hydrogen into account in development plans,
• Hydrogen: a framework for hydrogen networks, operators and access rules, with a transitional period until 2032.

Provisions on consumer protection and security of supply were also negotiated, strengthening the position of consumers on the gas market.

Significance for the industry in Poland

For Poland, where the biomethane support system is only beginning to operate, the package matters for two reasons. First, it sets the EU framework to which national network operators and the regulator must adapt – especially on connection and tariffs. Second, it introduces requirements for hydrogen, which will compete with biomethane for grid access and infrastructure. Biomethane producers should follow implementation, because it determines whether grid access costs remain at an acceptable level.

Distribution system operators will have to prepare standard connection conditions and balancing rules adapted to many small, distributed biomethane sources.

What to look out for

When planning a biomethane plant investment, it is worth checking whether the operator has connection rules in place, which gas quality parameters apply and how charges are calculated. It is also good to take part in national consultations on implementing the package.

Why the transitional period matters

During the transitional period, hydrogen networks can operate under more lenient rules, which makes it easier to build the first routes before a fully developed market emerges. A shorter period, to 2032, means full market requirements arrive sooner. For investors, this means planning earlier for compliance with the rules on third-party access and unbundling.

What next

The documents will be approved by Parliament and the Council in 2024, and Member States will have time to transpose the directive. The biomethane industry will push for the widest possible application of tariff incentives.