The Regulation of Power-to-Gas Facilities and Regulatory Sandboxes

Reaching the ambitious energy and climate targets to which the European Union (EU) is committing requires harnessing all the opportunities associated with hydrogen, for which a strategic approach is needed. In this context, in its Hydrogen Strategy, the European Commission launched a plan to reach 80 GW of electrolyser capacity by 2030, half of which within the EU and the other half in Europe’s neighbourhood, with the export of green hydrogen to the EU.

The envisaged massive increase in electrolyser capacity in the EU calls for clarity on the regulatory approach to these installations and, more generally, to power-to-gas facilities.

Watch the recording:

In this Debate, we intend to identify the best regulatory approach to power-to-gas facilities, and the potential use of regulatory sandboxes for this purpose.

In particular, we will assess whether:

• power-to-gas facilities should be considered as performing a monopoly activity, which would justify them being owned and run by Transmission System Operators (TSOs) or Distribution System Operators (DSOs);
• power-to-gas facilities should instead be considered as performing a competitive activity. In which case, under the existing unbundling provisions, TSOs and DSOs would be prevented from owning and/or operating them;
• a “hybrid” approach should be considered, in which the role of TSOs and DSOs would be tailored to the stage of market development of power-to-gas activities;
• different approaches should be tested in parallel using regulatory sandboxes.

Programme

14.00 – 14.05: Introduction to the Debate

Leigh Hancher | Florence School of Regulation and Tilburg University

14.o5 – 14.15: Regulatory Sandboxes

Tim Schittekatte | Florence School of Regulation

14.15 – 14.25: The possible regulatory approaches to power-to-gas facilities

Alberto Pototschnig | Florence School of Regulation

PANEL DISCUSSION

Moderator: Leigh Hancher | Florence School of Regulation and Tilburg University

14.25 – 14.50: Introductory remarks

• Benedikt Klauser | DG ENER
• Francesco Cariello| ARERA
• Dennis Hesseling | ACER
• Gerald Kaendler | ENTSOE
• Jan Ingwersen |ENTSOG

14.50-14.55: Live Polls for the audience

14.55 – 15.20: Comments on the outcome of the polls and Q&A from the audience

15.20 – 15.30: Concluding remarks

Leigh Hancher | Florence School of Regulation and Tilburg University

Alberto Pototschnig | Florence School of Regulation

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The focus of the debate series is on recent court cases, regulatory decisions, EU legislation, or public consultations to be discussed by a panel of experts. Learn more about the FSR series.