Changes from report parliamentary committee draft to plenary report

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Added6. The regulatory authority shall monitor and evaluate the implementation of the ten-year network development plan. Such monitoring and evaluation shall be made publicly available.

Added6a. The regulatory authority shall take the examination of network development plan for hydrogen into account in its approval of dedicated charges within the meaning of Article 4 of [recast Gas Regulation as proposed in COM(2021)xxx].

Added7. In circumstances where the independent system operator, independent transmission operator or the hydrogen transmission network operator is unbundled in accordance with the rules applicable to the operator concerned, other than for overriding reasons beyond its control, does not execute an investment in accordance with paragraph 2, point (b), which, under the ten-year network development plan, was to be executed in the following three years, Member States shall ensure that the regulatory authority is required to take at least one of the following measures to ensure that the investment in question is made if such investment is still relevant on the basis of the most recent ten-year network development plan:

Added(a) to require the transmission system operator or the hydrogen transmission network operator to execute the investments in question;

Added(b) to organise a tender procedure open to any investors for the investment in question;

Added(c) to oblige the transmission system operator or the hydrogen transmission network operator to accept a capital increase to finance the necessary investments and allow independent investors to participate in the capital.

AddedWhere the regulatory authority has made use of its powers under point (b) the first subparagraph, it may oblige the transmission system operator or the hydrogen transmission network operator to agree to one or more of the following:

Added(a) financing by any third party;

Added(b) construction, repurposing or decommissioning by any third party;

Added(c) building the new assets or decommission or repurpose existing assets concerned itself;

Added(d) operating the new assets concerned itself.

AddedThe transmission system operator or the hydrogen transmission network operator shall provide the investors with all information needed to realise the investment, shall connect new assets to the transmission network and shall generally make its best efforts to facilitate the implementation of the investment project.

AddedThe relevant financial arrangements shall be subject to approval by the regulatory authority.

Added8. Where the regulatory authority has made use of its powers under paragraph 7, the relevant tariff regulations shall cover the costs of the investments in question.

Added8a. Without prejudice to other consultation or transparency provisions laid down in Union law, including this Directive and Regulation [recast Gas Regulation as proposed in COM(2021)xxx], or national law, when engaging in stakeholder consultations referred to in paragraph 1, paragraph 2, point (e) and paragraph 4 of this Article, the transmission system operator, the hydrogen transmission network operator and the regulatory authority shall comply with the following:

Added(a) the consultations shall be effective and extensive and shall take place at an early stage prior to the development of the ten-year network development plan in an open, inclusive and transparent manner; the participation shall be voluntary and all relevant stakeholders shall be invited to participate, including the distribution system operator and hydrogen distribution network operator, associations involved in electricity, gas and hydrogen markets, heating and cooling, supply and production undertakings, independent aggregators, demand-response operators, organisations involved in energy efficiency solutions, energy consumer associations, civil society representatives, research organisations and universities, where appropriate;

Added(b) as a derogation from point (a), infrastructure operators, including LNG terminal operators, storage operators, hydrogen storage and terminal operators, distribution system operators, hydrogen distribution network operators as well as district heating infrastructure and electricity operators shall be required to provide and exchange all relevant information to the transmission system operators and the hydrogen transmission network operators required for developing the single plan; end-users in hard-to-decarbonise sectors with the highest greenhouse gas abatement potential per tonne of consumed hydrogen where no other more energy and cost efficient options are available shall be required to provide and exchange all relevant information to the hydrogen transmission network operators; their views shall be fully taken into account without prejudice to paragraphs 1, 2 and 3;

Added(c) all official documents related to the consultations and documents used for development of the draft plan and the final plan shall be made public while taking into consideration commercially sensitive information and data protection;

Added(d) before the transmission system operator and the hydrogen transmission network operator submit the ten-year network development plan to the regulatory authority for approval, and in case the regulatory authority issues its decision approving or requiring amendments to the plan, the transmission system operator, the hydrogen transmission network operator as the case may be, shall be able to duly justify all instances where observations have not been taken into account, or have only partially been taken into account;

Added(e) to ensure early and effective participation, the transmission system operator shall publish its draft network development plan in a timely adequate manner prior to the submission to the regulatory authority, for comments by the stakeholders referred to in point (a).

Added▌

Added1. Member States shall ensure that their regional and local authorities prepare local heating and cooling plans at least in municipalities having a total population of at least 35 000. Member States shall encourage municipalities with a lower population to prepare such plans. Those plans shall complement the comprehensive heating and cooling assessment in accordance with Article 23(1) of Directive (EU) .../...+. Each Members State shall complement the comprehensive heating and cooling assessment with a national strategy aiming to reduce the use of gas for the heating and cooling of buildings on distribution level in line with 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 taking into account the availability of more energy and cost-efficient alternatives in accordance with the comprehensive heating and cooling assessment.

Added2. The local heating and cooling plans referred to in paragraph 1 shall at least:

Added(a) be built upon the local heating and cooling plans referred to in Article 23(6) of Directive (EU) .../...+;

Added(b) represent the result of a thorough assessment of a specific area’s current and future demand for heating and cooling, including the energy demand of final customers in industry, SMEs, buildings and transport, and analyse the potential of decarbonisation by taking into account local and regional renewable energy sources, including non-gas renewable energy sources and the potential of biomethane based on the regional maps referred to in Article 17a(1) of Regulation [recast Gas Regulation as proposed in COM(2021)xxx], energy savings and energy efficiency measures as well as the potential of system efficiency through sector integration and the capacity for seasonal storage at local or regional level;

Added(c) be in line with the national building renovation plan referred to in Article 3 of Directive (EU) .../... ++, the integrated multilevel mapping and planning and Go-to areas in accordance with Article 15b of Directive (EU) 2018/2001 [amended RED] as well as the joint scenario framework as referred to in Article 51(2), point (e) of this Directive;

Added(d) take into account the national strategy referred to in paragraph 1;

Added(e) include a strategy that fully considers the strategy referred to in Article 23(6), point (b), of Directive (EU) .../.. + and is based on points (a) to (d) of this paragraph, which establishes requirements for the infrastructure necessary on distribution level, including decommissioning and repurposing, to meet the current and future demand for heating and cooling of a specific area in the most energy and cost-efficient way and in consistency with the ten-year network development plan developed under Article 5 and implements the priority use of the most energy and cost-efficient sustainable technology in a specific residential area taking into account the building stock, including the potential of high efficiency district heating expansion contributing to emissions reduction from existing buildings;

Added(f) create a reliable timeframe and investment-friendly environment for private and public actors to meet a specific area’s heating and cooling needs, including the decommissioning and repurposing of assets, based on that strategy referred to in point (g);

Added(g) include a trajectory to achieve the goals of the plans in line with climate neutrality and the monitoring of the progress of implementation of policies and measures identified;

Added(h) be prepared with the involvement of all relevant infrastructure operators on distribution level, of at least gas, including hydrogen, electricity and district heating, as well as all relevant regional or local stakeholders and ensure the participation of the public.

Added3. Member States shall ensure that all relevant parties, including public and relevant private stakeholders, are given the opportunity to participate in the preparation of local heating and cooling plans, the policies and measures. Member States shall ensure that final customers are fully informed about mandatory fuel switches and alternatives in accordance with Article 11a.

AddedFor that purpose, Member States shall develop recommendations supporting the regional and local authorities to implement policies and measures in renewable energy based heating and cooling at regional and local levels using the potential identified. Member States shall support regional and local authorities to the utmost extent possible by any means including financial support and technical support schemes.

Added4. Local heating and cooling plans may be implemented jointly by a group of several neighbouring local authorities provided that the geographical and administrative context as well as the heating and cooling infrastructure is appropriate.

Added5. The implementation of local heating and cooling plans shall be verified and assessed by a competent authority. Where implementation is considered to be insufficient, on the basis of the trajectory and the monitoring pursuant to paragraph 2, point (g), the competent authority shall propose measures to close the implementation gap.

Added1. All distribution system operators or hydrogen distribution network operators shall submit a distribution network development plan to the regulatory authority for approval at least every four years in due time for being considered in the drafting of the ten-year network development plans referred to in Article 51. The distribution network development plan shall set out the planned investments for the next five-to-ten years, including main distribution infrastructure which is required to transport renewable gas from new production facilities, as well as the infrastructure which will be decommissioned and repurposed. Distribution system operators and hydrogen distribution network operators that are active in the same regional area may opt to develop one single joint network development plan. Distribution network development plans shall:

Added(a) be aligned with the Member State’s integrated national energy and climate plan, national energy and climate report and long-term strategy submitted under Regulation (EU) 2018/1999, and contribute to the achievement of regional and national climate and energy targets for 2030 and 2050;

Added(b) be based on relevant strategies referred to in Article 52a(2), point (c) that establish requirements for the infrastructure on distribution level, including parts that may require decommissioning, aiming to reduce the use of gas in buildings in case more energy and cost-efficient sustainable technologies are available;

Added(c) be based on reasonable assumptions about the evolution of production, injection, supply and consumption of gas while taking into account the relevant strategies of the local authorities for the heating and cooling of new residential areas as well as requests from final customers to switch fuels;

Added(d) be consistent with the ten-year network development plan referred to in Article 51;

Added(e) promote priority use of renewable gas and low-carbon gas in hard-to-decarbonise sectors where no other more energy and cost efficient options are available;

Added(f) contain all investments, including demand-side solutions not requiring new infrastructure investments, energy storage facilities or other available energy system resources as an alternative to system expansion where doing so is more efficient as well as grid reinforcement for the injection of biomethane; and

Added(g) include information on infrastructure that could be decommissioned, where alternatives are available, or repurposed for the transport of hydrogen, including to rapidly deliver hydrogen to 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.

Added2. The distribution system operator or the hydrogen distribution network operator shall conduct a public consultation on the draft distribution network development plan. The participation is voluntary and all relevant stakeholders shall be invited, including the transmission system operator and hydrogen transmission system operator, as well as district heating infrastructure and electricity operators, associations involved in electricity, gas and hydrogen markets, heating and cooling, supply and production undertakings, independent aggregators, demand-response operators, organisations involved in energy efficiency solutions, industrial end-users, energy consumer associations, civil society representatives, research organisations and universities, where appropriate. To ensure early and effective participation, the distribution system operator or the hydrogen distribution network operator shall publish a draft of the network development plan in advance for comments.

Added3. The distribution system operator or the hydrogen distribution network operator shall make public the results of the consultation processes together with the draft distribution network development plan.

Added4. The regulatory authority shall approve or reject the distribution network plan and may require amendments to the plan, based on its consistency or inconsistency with the requirements of paragraph 1, before making a decision to approve or reject the plan.

Added5. However, Member States may decide not to apply the obligations set out in paragraphs 1 to 4 to distribution system operator which serve less than 35 000 connected customers by ... [the date of entry into force of this Directive].

Added6. Where the strategy referred to in Article 52a(2), point (e), or the distribution network development plan developed under this Article identifies that parts of the distribution system may require decommissioning, in particular before the end of their originally projected useful lifecycle, and will not be repurposed for the transport of hydrogen, Member States shall ensure regulatory guidance from the regulatory authorities and financial support for distribution system operators. Support measures shall take into account security of supply, the affordability of network tariffs and environmental requirements. Complementary, the distribution system operator shall propose interventions to the regulatory authority to equitably allocate the efficient costs of the assets over their remaining lifecycle until they are decommissioned. To that end, the regulatory authority may in coordination with the distribution system operator set up guidelines for a structural approach to the depreciation of assets. Such interventions could include, for example, adjusting the depreciation profile or timeline of the assets. The regulatory authority in coordination with the distribution system operator shall decide whether such assets should be decommissioned before the end of their originally projected useful lifecycle and, if so, whether any of the interventions proposed by the distribution system operator, or any alternative interventions, shall be implemented to equitably allocate the efficient costs of the assets over their remaining lifecycle until decommissioning. The repurposing of assets for the transport of hydrogen in accordance with paragraph 2, point (g), shall be taken into account. The distribution system operator shall implement the interventions decided by the regulatory authority.

Added-1. Without prejudice to Article 4 of Regulation [recast Gas Regulation as proposed in COM(2021)xxx], there shall be no cross-subsidisation between current gas grid users and the users of the future hydrogen network.

Added1. Where Member States apply a system of regulated third party access to hydrogen networks pursuant to Article 31, paragraph 1 and where a hydrogen interconnector project is included in the EU-wide ten-year network development plan as referred to in Article 29 ▌of [recast Gas Regulation as proposed in COM(2021)xxx] and is not a project of common interest as referred to in [Chapter II and Annex I point 3 of Regulation xxx on Guidelines for trans-European energy infrastructure], adjacent and affected hydrogen network operators shall design a project plan, including a request for cross-border cost allocation, and submit it jointly to the concerned regulatory authorities for a joint approval.

Added2. The project plan and request for cross-border cost allocation shall be accompanied by a project-specific cost-benefit analysis, taking into account benefits beyond the borders of Member States concerned, and by a business plan evaluating the financial viability of the project, which shall include a financing solution and specify whether the hydrogen network operators involved agree on a substantiated proposal for a cross-border cost allocation.

Added3. The concerned regulatory authorities shall, after consulting the hydrogen network operators, take coordinated decisions on the allocation of investment costs to be borne by each network operator for the project.

Added4. Where the concerned regulatory authorities cannot reach an agreement on the request within six months, ACER shall take a decision, following the process pursuant to Article 6(10) in Regulation (EU) 2019/942.

Added5. After 31 December 2030, all affected hydrogen network operators shall negotiate a system of financial compensation to ensure financing for cross-border hydrogen infrastructure in the event that no tariffs are charged for access to hydrogen networks at interconnection points between Member States pursuant to Article 6(7), of Regulation [recast Gas Regulation as proposed in COM(2021)xxx]. When developing that system, hydrogen network operators shall conduct an extensive consultation process involving all relevant market participants and shall take into account any decision of the regulatory authorities concerned or of ACER to charge tarrifs for access to hydrogen networks at interconnection points between Member States adopted pursuant to Article 6(7), of Regulation [recast Gas Regulation as proposed in COM(2021)xxx].

Added6. The hydrogen network operators concerned shall agree on the system of financial compensation within 3 years and by 31 December 2033 and submit it to the regulatory authorities concerned for their joint approval. If no agreement is reached within that period, the involved regulatory authorities shall decide jointly within 2 years. Where the relevant regulatory authorities cannot reach a joint agreement within 2 years, ACER shall take a decision, following the process pursuant to Article 6(10) in Regulation (EU) 2019/942.

Added7. The system of financial compensation shall be implemented in line with Article 72(1), point (b).

Added8. For the transition to a system of financial compensation mechanism, existing capacity contracts shall not be affected by the established financial compensation mechanism.

Added9. Further details required to implement the process set out in this Article, including required processes and time frames, process for reviewing and if necessary amending the compensation mechanism allowing taking into account tariff evolution and the development of the hydrogen networks, shall be set in a network code established on the basis of Article 54 of [recast Gas Regulation as proposed in COM(2021)xxx].

Added9a. Paragraphs 1 to 9 shall not apply to hydrogen distribution network operators unless they operate cross-border infrastructure.