Joint EUGINE EUTurbines Position Paper – Gas Markets Decarbonisation Package
12 March 2021
EUGINE and EUTurbines, the gas power plants technology providers, welcome and support the European Commission’s initiative to prepare gas markets for the increased climate ambition of the European Union. A consistent EU-wide legal framework will be essential to drive the decarbonisation of European gas markets, namely by facilitating the emergence of a market for competitive renewable and low-carbon gases.
In February, the European Commission published a roadmap laying out its plans for the revision of the Gas Directive and Regulation and the decarbonization of the gas sector. In it, the Commission proposes a series of policy options for fostering a hydrogen economy and the integration of renewable and low-carbon gases in the existing gas infrastructure and markets.
In their joint position, EUGINE and EUTurbines list essential conditions for the successful transformation of the Europe’s energy system, including:
- An integrated approach reflecting the interdependence of energy vectors and recognizing the role of gas storage as the most suitable and cost-efficient long-term energy storage solution.
- A long-term perspective and market design incentivising the supply and use of renewable and low-carbon gases in Europe and ensuring consistency, predictability and certain stability of the gas quality delivered to the customer.
- EU-wide rules that promote the access and use of hydrogen for all end-users, including power generation, and involve them in the infrastructure planning and decision-making process.
- The recognition that the decarbonisation of gas will undergo a transitional phase before supplying fully renewable gas to end-users by 2050, during which CCU/S will be used to provide low-carbon hydrogen.
- A controlled blending of hydrogen into the natural gas network in the beginning, until larger amounts of hydrogen are available.
In a decarbonized energy system, flexible gas power generation in combination with the long-term storage benefits of gas will fulfil an important role in supplying peak electricity and heat demand and in contributing to the circular economy through the use of waste and anthropogenic gases. More about the contribution of engine power plants to the energy transition is available under applications.
