Changes from report parliamentary committee draft to plenary report

Added3. Where an exemption is granted under paragraph 2, the applicable tariffs, or the methodologies underlying their calculation, shall be reviewed and approved in accordance with Article 72 upon request by a user of the closed natural gas distribution system.

Added4. Incidental use by a small number of households with employment or similar associations with the owner of the distribution system and located within the area served by a closed distribution system shall not preclude an exemption under paragraph 2 being granted.

Added5. Closed distribution systems shall be considered as distribution systems for the purposes of this Directive.

AddedArticle 44(1) shall not prevent the operation of a combined transmission system, hydrogen network, LNG system, hydrogen terminal, natural gas and hydrogen storage and distribution system operator provided that the operator complies with Articles 64 and 69 as well as Article 54(1), ▌Articles 55 and 56, ▌Chapter IX, or Article 62.

AddedRules applicable to the dedicated hydrogen networks

Added1. Each operator of hydrogen networks, storage or terminal shall be responsible for:

Added(a) operating, maintaining, developing, including repurposing, under economic conditions a secure and reliable infrastructure for hydrogen transport or storage with due regard to the environment, in close cooperation with connected and neighbouring hydrogen network operators and on the basis of the ten-year network development plan referred to in Article 51;

Added(b) ensuring the long-term ability of the hydrogen system to meet identified reasonable demands for the transport and storage of hydrogen in accordance with the ten-year network development plan referred to in Article 51;

Added(c) ensuring adequate means to meets its obligations;

Added(d) providing to the operator of other networks or systems with which its system is interconnected sufficient information, including on hydrogen quality, to ensure the secure and efficient operation, coordinated development and interoperability of the interconnected system;

Added(e) not discriminating between system users or classes of infrastructure users, specifically in favour of its related undertakings; and

Added(f) providing system users with the information they need for efficient access to the infrastructure;

Added(g) taking all necessary measures available to prevent and minimise hydrogen emissions in their operations and carrying out, at regular intervals, a hydrogen leak detection and repair survey of all relevant components under the operator responsibility;

Added(h) submitting a hydrogen leak detection report and, where necessary, a repair or replacement programme to the competent authorities; data on hydrogen leaks and repairs shall be made publicly available;

Added(ha) coordinating the activities with other hydrogen network operators in order to optimise co-location of production and use of hydrogen.

Added2. Each hydrogen network operator shall build sufficient cross-border capacity to integrate European hydrogen infrastructure accommodating, where it is economically reasonable and technically feasible, all demands along the capacity identified in the ten-year network development plan referred to in Article 51 and the Union-wide network development plan referred to in Article 23 of [recast Gas Regulation as proposed in COM(2021) xxx] and taking into account security of hydrogen supply. This paragraph shall not apply to hydrogen distribution network operators unless they operate cross-border infrastructure.

Added3. Hydrogen network operators shall be responsible for ensuring efficient hydrogen quality management in their networks in line with applicable hydrogen quality standards, to meet the quality requirements of different end-use applications and subject to the approval of the regulatory authority.

Added3a. Hydrogen network operators shall be required to ensure stable hydrogen quality for end-users, in particular in hard-to-decarbonise sectors, by applying applicable hydrogen quality standards.

Added1. Member States may decide to grant a derogation from the requirements of Articles 31, 42, 62 ▌ and 64 of this Directive, and Articles 6 and 47 of [recast Gas Regulation as proposed in COM(2021) xxx] to hydrogen networks that belonged to a vertically integrated undertaking on [date of entry into force]. The derogation shall be limited in scope to the network capacity in operation on [date of entry into force].

Added2. The derogation shall be limited in time and shall expire:

Added(a) where the vertically integrated undertaking submits a request to the regulatory authority to end the derogation and such request is approved by the regulatory authority;

Added(b) where the hydrogen network benefitting from the derogation is connected to another hydrogen network;

Added(c) where the hydrogen network benefitting from the derogation or its capacity is expanded;

Added(d) at the latest on 31 December 2030.

Added1. Member States may provide for regulatory authorities to grant a derogation from Article 42 or 62 for hydrogen networks which transport hydrogen from one entry point to a limited number of exit points within a geographically confined, industrial or commercial area.

AddedBefore granting a derogation pursuant to the first subparagraph, the regulatory authorities shall take into account the connection to the hydrogen network of end-users in hard-to decarbonise sectors with the highest greenhouse gas abatement potential where no other more energy or cost efficient alternatives are available.

Added2. The derogations under paragraph 1 shall apply at least until 31 December 2030. As from 1 January 2031, the derogation shall expire when one of the conditions below is fulfilled:

Added(a) where a competing renewable hydrogen producer wants to get access to the network;

Added(b) where the exempted hydrogen network becomes connected to another hydrogen network.

AddedMember States shall take the necessary measures to ensure that access requests referred to in point (a) of the first subparagraph are notified to the regulatory authority and information on derogations, type of end-users served, type and extension of the geographically confined area are made publicly available, with due regard of commercially sensitive information.

Added1. Hydrogen interconnectors between Member States and third countries shall be subject to the rules applicable to hydrogen networks as set out in this Directive and in [recast Gas Regulation as proposed in COM(2021) xxx]. Member States shall ensure that the enforcement of these rules takes into account their effective application on Union territory and the integrated nature of the interconnector.

Added2. For the purpose of implementing the requirements set out in paragraph 1, the Union shall, for each hydrogen interconnector, conclude prior to its operation an intergovernmental agreement with the connected third country, or third countries, setting out the operating rules for the hydrogen interconnector concerned where the Commission has determined that such an agreement is necessary to ensure compliance with the rules referred to in paragraph 1.

Added3. Such intergovernmental agreement shall contain ▌ rules specifying the implementation of the requirements of third-party access, tariff regulation and on the unbundling of the operator of the hydrogen interconnector, as well as rules on the certification of renewable and low-carbon hydrogen, including rules ensuring the collection of required data and the application of the criteria for accounting hydrogen produced from renewable electricity as renewable hydrogen as well as guidelines on social and environmental cooperation.

Added1. Member States shall ensure the deployment of smart metering systems for industrial customers that can accurately measure consumption, provide information on actual time of use, and are capable of transmitting and receiving data for the purpose of information, monitoring and control, using a form of electronic communication.

Added2. Member States shall ensure the security of the metering systems and of relevant data communication, and the privacy of final customers, in accordance with relevant Union data protection and privacy law, as well as their interoperability, having regard to the use of appropriate standards.

Added3. The Commission shall adopt, by means of implementing acts, interoperability requirements for smart metering systems and procedures to ensure, for those eligible, access to data coming from those metering systems. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 84(2).

AddedArticle 50 Confidentiality for operators of hydrogen networks, hydrogen storage facilities and hydrogen terminals

Added1. Without prejudice to legal duties to disclose information, each operator of a hydrogen network, hydrogen storage facility or hydrogen terminal, and each owner of a hydrogen network, shall preserve the confidentiality of commercially sensitive information obtained in the course of carrying out its activities, and shall prevent information about its own activities which may be commercially advantageous from being disclosed in a discriminatory manner. ▌ If the operator of a hydrogen network, hydrogen storage facility or hydrogen terminal, or the owner of a hydrogen network is part of a vertically integrated undertaking, it shall, in particular, not disclose any commercially sensitive information to the remaining parts of the vertically integrated undertaking other than transmission system operators, distribution system operators or hydrogen network operators, unless this is necessary for carrying out a business transaction.

Added2. The operator of a hydrogen network, hydrogen storage facility or hydrogen terminal shall not, in the context of sales or purchases of hydrogen by related undertakings, misuse commercially sensitive information obtained from third parties in the context of providing or negotiating access to the system.

Added3. Information necessary for effective competition and the efficient functioning of the market shall be made public. That obligation shall be without prejudice to protecting commercially sensitive information.

AddedIntegrated network planning

Added1. At least every two years, all transmission system operators, hydrogen transmission network operators and electricity transmission system operator in accordance with Article 51 of Directive (EU) 2019/944 shall submit to the relevant regulatory authority a ten-year network development plan based on existing and forecast supply and demand after having consulted all relevant stakeholders in accordance with paragraph 8a of this Article. There shall be at least one single network development plan per Member State for natural gas, hydrogen and electricity. The single network development plan shall contain efficient measures in order to promote energy system integration in line with the ‘system efficiency’ principle, as defined in Article 2, point (3a) of Directive (EU) .../... + and the energy efficiency first principle in accordance with the Commission Recommendation on Energy Efficiency First, contribute to climate neutrality and guarantee the adequacy of the natural gas system and the hydrogen system as well as the security of supply, in particular the compliance with the infrastructure standards under Regulation (EU) 2017/1938. The ten-year network development plan, and the information which the transmission system operator and the hydrogen transmission network operator considered in developing the ten-year network development plan, shall be published and accessible on a website.

Added2. The ten-year network development plan shall, in particular:

Added(a) contain the main infrastructure that needs to be built or upgraded over the next ten years, taking into account infrastructure developed by distribution system operators to enable reverse flows to the transmission network;

Added(b) contain all the investments and demand-side solutions not requiring new infrastructure investments already decided and identify new investments and demand-side solutions not requiring new infrastructure investments which have to be executed in the next three years, including investments with regard to the decommissioning and repurposing of infrastructure;

Added(c) include information on infrastructure that can or will be decommissioned or repurposed for the transmission of hydrogen, in particular to rapidly deliver hydrogen to end-users in hard-to-decarbonise sectors with the highest greenhouse gas abatement potential per tonne of consumed hydrogen and where no other more energy and cost efficient options are available; ▌

Added(ca) identify the most relevant and cost-efficient network connections and network reinforcements for renewable gas, including renewable hydrogen;

Added(d) provide for a time frame for all investment and decommissioning or projects and all demand-side solutions not requiring new infrastructure investments;

Added(da) include information on capacity needs, both in volume and duration, as negotiated between network users and hydrogen transmission network operators as well as the predicted supply and demand for hydrogen, specifically taking into account end-users in hard-to-decarbonise sectors, which have the highest greenhouse gas emissions abatement potential per tonne of consumed hydrogen and where no other more energy and cost efficient options are available;

Added(db) identify investment gaps, in particular with respect to cross-border capacities, that are needed for the establishment of an integrated Union hydrogen market enabling hydrogen to move freely across borders, taking into account the hydrogen storage development and the integration of hydrogen imports;

Added(e) be based on a joint scenario framework developed between the relevant infrastructure operators, including relevant distribution system operators, of at least gas, including hydrogen, electricity and district heating and the regulatory authorities, which shall incorporate reasonable assumptions for the evolution of production, consumption and trade of energy and shall be developed with input from all relevant stakeholders as referred to in paragraph 8a of this Article; evolution of biomethane production incorporated in the joint scenario framework shall be based on the regional maps referred to in Article 17a(1) of Regulation [recast Gas Regulation as proposed in COM(2021)xxx]; the joint scenario framework shall include a long-term perspective, with intermediate steps, until 2050 in line with point (g) of this paragraph and take into account the joint scenario framework from the Union-wide ten-year network development plan;

Added(ea) be developed in a close cooperation between gas, hydrogen and electricity operators on the basis on identified coordinated priority corridors for renewable electricity and renewable gas in accordance with the joint scenario framework developed under point (e);

Added(f) be consistent with the results of the common and national risk assessments under Article 7 of Regulation 2017/1938;

Added(g) contribute to achieving the integrated national energy and climate plan and its updates, ▌the integrated national energy climate reports and long-term strategies submitted in accordance with Regulation (EU) 2018/1999 and support the GHG emissions reductions and climate-neutrality objectives set out in Articles 2(1) and 4(1) of Regulation (EU) 2021/1119 and relevant national decarbonisation objectives;

Added(ga) be in line with and contribute to the latest Union energy and climate objectives for 2030 as defined under targets agreed in Directive (EU) .../... +, Article 26 of the Directive (EU) …/…+ and in Directive (EU) 2018/2011 [amended RED];

Added(gb) be consistent with the Union-wide ten-year network development plan referred to in Article 29 of Regulation ... [recast Gas Regulation as proposed in COM(2021)xxx].

Added(gc) take into account the distribution network development plans referred to in Article 52b.

Added3. When elaborating the ten-year network development plan, the transmission system operator and the hydrogen transmission network operator shall fully take into account the potential for alternatives to system expansion, in particular decommissioning or repurposing of infrastructure as well as demand-side solutions not requiring new natural gas or hydrogen infrastructure, and expected consumption following the application of the energy efficiency first principle, trade with other countries and the Union-wide network development plan. The prioritisation of the end-users in hard-to-decarbonise sectors, which have the highest greenhouse gas emissions abatement potential per tonne of consumed hydrogen and where no other more energy and cost efficient options are available, shall be considered. The transmission system operator and hydrogen transmission network operator shall assess how to address, where possible, a need across electricity, heat and gas systems including information on the optimal location and size of energy storage, power to gas assets and hydrogen-ready plants as well as planning for co-location of future production and use sites, where possible. The hydrogen transmission network operator shall include information on the location of end-users in hard-to-decarbonise sectors with the highest greenhouse gas abatement potential per tonne of consumed hydrogen. The transmission system operator and the hydrogen transmission network operator shall make reasonable assumptions about the evolution of production, supply and consumption of gas and electricity.

Added4. The regulatory authority shall consult all actual or potential system users and all relevant stakeholders in accordance with paragraph 8a, on the ten-year network development plan in an open and transparent manner. Persons or undertakings claiming to be potential system users may be required to substantiate such claims. The regulatory authority shall publish the result of the consultation process, including possible needs for investments, decommissioning of assets and demand-side solutions not requiring new infrastructure investments.

Added5. The regulatory authority shall examine whether the ten-year network development plan complies with paragraphs 1, 2 and 3, covers all investment needs identified during the consultation process, promotes energy system integration and is in line with the energy efficiency first principle, the integrated national energy and climate plan and its updates, with the integrated national energy climate reports and long-term strategies submitted in accordance with Regulation (EU) 2018/1999, and whether it is consistent with the most recent Union wide simulation of disruption scenarios carried out by the ENTSOG under Article 7 of Regulation (EU) 2017/1938, with the regional and national risk assessments, the Union-wide ten-year network development plan referred to in Article 29 of Regulation ... [recast Gas Regulation as proposed in COM(2021)] and the non-binding Union-wide ten-year network development plan (Union -wide network development plan) referred to in Article 30(1), point (b), of Regulation (EU) 2019/943. If any doubt arises as to the consistency with the Union -wide network development plan, the regulatory authority shall consult ACER. The European Scientific Advisory Board on Climate Change may give an opinion on the draft ten-year network development plan. The regulatory authority shall publish a decision, including a report, approving, amending or requiring the transmission system operator or the hydrogen transmission network operator to amend its ten-year network development plan to resolve any identified inconsistencies with paragraphs 1, 2 and 3.