Breaking free from fossil gas: planning and regulating Europe's gas networks

Related Organizations

Table of Contents

• 1 Summary 6
• 1.1 Introduction 6
• 1.2 Persistent gas demand trends despite climate targets 6
• 1.3 Disconnect between gas network planning and climate objectives 6
• 1.4 Regulatory gaps in gas distribution decommissioning 7
• Figure 1. Overview of country-specific findings on the regulation of decommissioning gas networks 7
• 1.5 Insufficient consideration of vulnerable customers 8
• 1.6 Insufficient coordination between gas grid and heat planning 8
• 1.7 Opportunities for stakeholder involvement 8
• Figure 2. Opportunities for stakeholder involvement in gas network planning and regulation, and key points to make for appropriate cost-effective infrastructure 9
• 1.8 Recommendations for policy and regulation 9
• 2 Introduction 11
• 3 Methodology 13
• 4 Development of fossil gas consumption and heating sector 14
• 4.1 Gas demand: No decline in sight 14
• Figure 3. Development of gas demand in case study countries as percentage trend since 2012 14
• Table 1. Population and natural gas consumption data for selected European countries, 2021 16
• Figure 4. Sectoral consumption of natural gas per capita, 2021 17
• 4.2 Gas boiler market and stock 18
• 4.3 Current state of the distribution network 20
• Figure 5. Comparison of gas connection points to national gas grids 20
• Figure 6. Comparison of national gas distribution network lengths 21
• Figure 7. Comparison of number of national gas distribution system operators 22
• 5 Heat planning and boiler regulations 23
• 5.1 Heat planning 23
• 5.2 Gas boiler regulation 25
• 6 Gas network planning and alignment with climate scenarios 28
• 6.1 Gas network planning 28
• 6.2 Alignment with climate scenarios 29
• Figure 8. Future gas and hydrogen demand in Germany, Austria, the Netherlands and the United Kingdom based on national climate targets and projected developments of gas network operators 31
• Figure 9. Future gas and hydrogen demand in Denmark, Italy and Belgium based on national climate targets and projected developments of the network operators 32
• 7 Regulation 35
• Figure 10. Overview of country-specific findings on the regulation of the decommissioning of gas networks 36
• 7.1 Grid connection 36
• 7.2 Depreciation 37
• 7.3 Decommissioning/demolition 38
• 7.4 Grid charges 38
• 8 Consumer protection and vulnerable energy users 40
• 9 Current and anticipated role of alternative gases 44
• 9.1 Hydrogen 44
• Table 2. Official government targets/plans for hydrogen by 2030 44
• 9.2 Biomethane 45
• Table 3. Status quo of biomethane parameters 46
• Table 4. Official government targets/plans for biomethane by 2030 47
• 10 Transparency of information and opportunities for stakeholder involvement 48
• 10.1 Public information and transparency 48
• 10.2 Opportunities for stakeholder involvement 51
• Figure 11. Opportunities for stakeholder involvement in gas network planning and regulation and key points to make for appropriate, cost-effective infrastructure 52
• 11 Recommendations 55
• Recommendation 1: Adopt national phase-out target and give energy regulators a net zero mandate 55
• Recommendation 2: Make the regulatory framework fit for the gas phase-out 55
• Recommendation 3: Adopt integrated heat and grid planning 56
• Recommendation 4: Plan future gas infrastructure based on realistic assumptions about availability of zero-carbon heating technologies 56
• Recommendation 5: Track and collect harmonised data at the EU level 57
• Recommendation 6: Protect vulnerable customers 57
• Country-specific recommendations 58
• Austria 58
• Belgium 58
• Denmark 59
• Germany 59
• Italy 59
• Netherlands 60
• United Kingdom 60
• 12 References 62