CESEC's region potential for renewable and low-carbon gas deployment in the context of infrastructure development

In order to meet the European Green Deal and REPowerEU objectives, the CESEC region needs to step up the efforts for renewable energy deployment, including renewable and low-carbon gases. In order to do so, an adequate network of infrastructure, alongside a fit-for-purpose regulatory framework, needs to be developed. In this context, DG ENER has commissioned a study to Grant Thornton in association with AF Mercados EMI (ENER/C4/2021-444 - CESEC's region potential for renewable and low-carbon gas deployment in the context of infrastructure development) aiming at exploring the potential for the production and deployment of renewable and low-carbon gases (renewable hydrogen and biomethane specifically), as well as their integration in the CESEC region. In accordance with the increasing importance of hydrogen and biomethane in Europe, the 2013 TEN-E Regulation (REGULATION (EU) No 347/2013) has been revised to introduce new infrastructure categories and end policy and financial support to cross-border natural gas infrastructure. The new infrastructure categories include electrolysers, hydrogen transport, storage facilities, and receiving terminals, as well as smart gas grids for integrating renewable and low-carbon gases (such as biomethane and renewable hydrogen) into the existing networks. In addition, for the first time, Projects of Mutual Interest (PMI) are also introduced in the revised TEN-E Regulation (Regulation (EU) 2022/869). The 1st PCI/PMI list under the revised TEN-E Regulation was published in November 2023 and came into force in May 2024. Moreover, the Council and the Parliament reached a provisional political agreement on a regulation that establishes common internal market rules for renewable and natural gases and hydrogen. The Energy Community countries also adopted and adapted the revised TEN-E Regulation with Ministerial Council Decisions 2023/02/MC-EnC and 2023/03/MC-EnC in December 2023. Upon its entry into force, it will repeal the old regulation on 31 December 2024.