Cross-border coordination with regard to hydrogen quality
1. Hydrogen transmission network operators shall cooperate to avoid restrictions to cross-border flows of hydrogen due to hydrogen quality differences in order to meet the quality requirements of different end-use applications in line with the applicable hydrogen quality standards.
2. Where a restriction to cross-border flows due to hydrogen quality differences cannot be avoided by the hydrogen transmission network operators concerned in their standard operations, they shall inform the regulatory authorities concerned without delay. The information shall include a description and the reasons justifying any measures already taken by the hydrogen transmission network operators.
3. The regulatory authorities concerned shall jointly agree, within six months of receipt of the information referred to in paragraph 2, whether to recognise the restriction.
4. Where the regulatory authorities concerned recognise the restriction pursuant to paragraph 3, they shall request the hydrogen transmission network operators concerned to perform, within 12 months of the recognition of the restriction as referred to in that paragraph, the following actions in sequence:
(a)
to cooperate and develop technically feasible options in order to remove the recognised restriction;
(b)
jointly to carry out a cost-benefit analysis on the technically feasible options to define economically efficient solutions which shall specify the breakdown of costs and benefits among the categories of affected parties;
(c)
to produce an estimate of the implementation time for each potential option;
(d)
to conduct a public consultation on identified feasible solutions and take into consideration the results of that consultation;
(e)
to submit a joint proposal, on the basis of the cost-benefit analysis and results of the public consultation, for a solution removing the recognised restriction, including the timeframe for its implementation, to their regulatory authorities concerned for approval and to the other competent national authorities of each Member State concerned for information.
5. Where the hydrogen transmission network operators concerned do not reach an agreement to submit a joint proposal pursuant to paragraph 4, point (e), each hydrogen transmission network operator shall inform its regulatory authority without delay.
6. The regulatory authorities concerned shall take a joint coordinated decision to remove the recognised restriction, taking into account the cost-benefit analysis carried out by the hydrogen transmission network operators concerned and the results of the public consultation conducted pursuant to paragraph 4, point (d), of this Article within six months of receipt of the information referred to in paragraph 5 of this Article, in accordance with Article 6(10) of Regulation (EU) 2019/942.
7. The joint coordinated decision of the regulatory authorities concerned referred to in paragraph 6 shall include a decision on the allocation of the investment costs to be borne by each hydrogen transmission network operator for implementing the agreed solution, as well as their inclusion in tariffs after 1 January 2033, taking into account the economic, social and environmental costs and benefits of the solution in the Member States concerned.
8. ACER may issue recommendations to the regulatory authorities on the details of such cost allocation decisions as referred to in paragraph 7.
9. Where the regulatory authorities concerned cannot reach an agreement as referred to in paragraph 3 of this Article, ACER shall decide on the restriction, in accordance with Article 6(10) of Regulation (EU) 2019/942. Where ACER recognises the restriction, it shall request the hydrogen transmission network operators concerned to perform, within 12 months, the actions referred to in paragraph 4 of this Article in sequence.
10. Where the regulatory authorities concerned cannot take a joint coordinated decision as referred to in paragraphs 6 and 7 of this Article, ACER shall decide on the solution to remove the recognised restriction and on the allocation of the investment costs to be borne by each hydrogen transmission network operator for implementing the agreed solution, in accordance with Article 6(10) of Regulation (EU) 2019/942.
11. Further details required to implement this Article, including details on a common binding hydrogen quality specification for cross-border hydrogen interconnectors, cost benefit analysis for removing cross-border flow restrictions due to hydrogen quality differences, interoperability rules for cross-border hydrogen infrastructure, including addressing interconnection agreements, units, data exchange, communication and information provision among relevant market participants, shall be laid down in a network code established pursuant to Article 72(1), point (b).
Cooperation between hydrogen distribution network operators and hydrogen transmission network operators
Hydrogen distribution network operators shall cooperate with other hydrogen distribution network operators and hydrogen transmission network operators to coordinate the maintenance, hydrogen network development, new connections, decommissioning and the operation of the hydrogen system to ensure hydrogen system integrity, with a view to maximising capacity and minimising the energy consumption to operate the hydrogen system.
European Network of Network Operators for Hydrogen
1. Hydrogen transmission network operators shall cooperate at Union level through the ENNOH, in order to promote the development and proper functioning of the internal market for hydrogen and cross-border trade and to ensure the optimal management, coordinated operation and sound technical evolution of the European hydrogen transmission network.
2. The ENNOH shall cooperate closely with the ENTSO for Electricity and the ENTSO for Gas on identifying synergies and on fostering system integration across energy carriers in order to facilitate overall energy system efficiency.
3. The ENNOH shall consist of hydrogen transmission network operators certified pursuant to Article 71 of Directive (EU) 2024/1788.
Hydrogen transmission network operators shall be eligible to become a member of the ENNOH from the start of the certification procedure conducted by the regulatory authority, subject to:
(a)
subsequent positive certification in accordance with Article 14 of this Regulation and Article 71 of Directive (EU) 2024/1788 conducted within 24 months of becoming a member of the ENNOH; and
(b)
at least developing hydrogen infrastructure projects with a final investment decision within four years of becoming a member of the ENNOH.
If the final certification decision referred to in the second subparagraph, point (a), has not been taken within 24 months of becoming a member of the ENNOH or if the final investment decision referred to in the second subparagraph, point (b), has not been taken within four years of becoming a member of the ENNOH, the ENNOH membership of the hydrogen transmission network operator shall expire.
4. By way of derogation from paragraph 3 of this Article, a hydrogen transmission network operator that benefits from a derogation from Article 68 of Directive (EU) 2024/1788 shall be eligible to become a member of the ENNOH, provided that the operator is established in a Member State where no other hydrogen transmission network operator is a member of the ENNOH pursuant to paragraph 3 of this Article. Member States may nominate such a hydrogen transmission network operator and shall submit any such nomination to the ENNOH, the Commission and ACER. Member States may revoke such a nomination at any time. Where the hydrogen transmission network operator has not taken a final investment decision with regard to a hydrogen infrastructure project within four years of becoming a member of the ENNOH, that operator’s membership of the ENNOH shall expire.
5. Member States which have not designated a hydrogen transmission network operator, but which plan to develop a hydrogen transmission network in accordance with their integrated national energy and climate plans, may nominate an entity as associated partner within the ENNOH. The Member State concerned shall submit a nomination pursuant to this paragraph to the ENNOH, the Commission and ACER. The Member State concerned may revoke such a nomination at any time. That nomination shall expire when a hydrogen transmission network operator established in the Member State concerned becomes a member of the ENNOH.
6. When performing its functions under Union law, the ENNOH shall act with a view to establishing a properly functioning and integrated internal market for hydrogen and shall contribute to the efficient and sustainable achievement of the objectives laid down in the policy framework for climate and energy, in particular by contributing to the efficient integration of hydrogen produced from renewable energy sources and to increases in energy efficiency while maintaining hydrogen system security. The ENNOH shall have adequate human and financial resources to carry out its duties.
7. By 1 September 2024, the hydrogen transmission network operators shall submit to the Commission and to ACER the draft statutes, a list of members and draft rules of procedure, including the rules of procedure on the consultation of stakeholders, of the ENNOH to be established.
8. The hydrogen transmission network operators shall submit to the Commission and to ACER any draft amendments to the statutes, list of members or rules of procedure of the ENNOH.
9. Within four months of receipt of the drafts referred to in paragraph 7 and the draft amendments to the statutes, list of members or rules of procedure referred to in paragraph 8, ACER shall, after consulting the organisations representing all stakeholders, in particular the hydrogen system users, including customers, provide an opinion to the Commission on those drafts or draft amendments to the statutes, list of members or rules of procedure.
10. The Commission shall issue an opinion on the drafts and draft amendments to the statutes, list of members or rules of procedure, taking into account ACER’s opinion referred to in paragraph 9, within three months of the date of receipt of that opinion.
11. Within three months of receipt of the Commission’s favourable opinion, the hydrogen transmission network operators shall adopt and publish the statutes, list of members and rules of procedure of the ENNOH.
12. The documents referred to in paragraph 7 shall be submitted to the Commission and ACER where there are changes thereto or upon the reasoned request of the Commission or ACER. The Commission and ACER shall issue their opinions in accordance with paragraphs 9, 10 and 11.
Transition to the ENNOH
Until the ENNOH is established, the ENTSO for Gas shall be responsible for the development of Union-wide network development plans for natural gas and hydrogen referred to in Articles 32 and 60. When carrying out that task, the ENTSO for Gas shall ensure the effective consultation and inclusion of all market participants, including hydrogen market participants.
Tasks of the ENNOH
1. The ENNOH shall have the following tasks:
(a)
develop network codes in the areas listed in Article 72 with a view to achieving the objectives set out in Article 57;
(b)
develop jointly with the ENTSO for Gas the network codes referred to in Article 72(1), point (f);
(c)
adopt and publish, every two years, a non-binding Union-wide ten-year network development plan for hydrogen referred to in Article 60 (the ‘Union-wide network development plan for hydrogen’), including a European supply adequacy outlook;
(d)
cooperate with the ENTSO for Electricity, the ENTSO for Gas and the EU DSO entity;
(e)
develop recommendations to hydrogen transmission network operators on their technical cooperation with hydrogen distribution network operators and with transmission system operators and distribution system operators in the Union;
(f)
develop recommendations relating to the coordination of technical cooperation between Union and third-country hydrogen network operators;
(g)
adopt an annual work programme;
(h)
adopt an annual report;
(i)
adopt an annual outlook for the hydrogen supply covering Member States where hydrogen is used in electricity generation;
(j)
adopt a hydrogen quality monitoring report by 15 May 2026 and every two years thereafter, including developments and forecasts for the expected developments of hydrogen quality parameters, as well as information on cases related to differences in hydrogen quality specifications and how such cases were settled;
(k)
promote cybersecurity and data protection in cooperation with relevant authorities and regulated entities;
(l)
develop and promote best practices in the detection, monitoring and reduction of hydrogen leaks.
2. The ENNOH shall monitor and analyse the implementation of the network codes and the guidelines adopted by the Commission in accordance with Articles 72, 73 and 74, and their effect on the harmonisation of applicable rules aimed at facilitating hydrogen market development and integration. The ENNOH shall report its findings to ACER and shall include the results of the analysis in the annual report referred to in paragraph 1, point (h), of this Article.
3. The ENNOH shall publish the minutes of its assembly meetings, board meetings and committee meetings and provide the public with regular information on its decision-making and activities.
4. The annual work programme referred to in paragraph 1, point (g), shall contain a list and description of the network codes to be prepared, a plan on the coordination of the operation of the hydrogen network, a list of research and development activities, to be realised in the course of that year, and an indicative calendar.
5. The ENNOH shall provide ACER with the information ACER requires to fulfil its tasks pursuant to Article 64. In order to enable the ENNOH to meet that requirement, hydrogen transmission network operators shall provide the ENNOH with the requested information.
6. Upon request of the Commission, the ENNOH shall give its views to the Commission on the adoption of the guidelines as laid down in Article 74.
Union-wide network development plan for hydrogen
1. The Union-wide network development plan for hydrogen shall include the modelling of the integrated hydrogen network, scenario development, a European supply adequacy outlook and an assessment of the resilience of the system.
The Union-wide network development plan for hydrogen shall, in particular:
(a)
build on the national hydrogen transmission network development plans as laid down in Article 55 of Directive (EU) 2024/1788 and Chapter IV of Regulation (EU) 2022/869;
(b)
regarding cross-border interconnections, also build on the reasonable needs of different network users and integrate long-term commitments from investors as referred to in Article 55(7) of Directive (EU) 2024/1788; and
(c)
identify investment gaps, in particular with respect to the necessary cross-border capacities, to implement the priority corridors for hydrogen and electrolysers as referred to in point 3 of Annex I to Regulation (EU) 2022/869.
With regard to the second subparagraph, point (c), a review of barriers to the increase of cross-border capacity of the network arising from different approval procedures or practices may be annexed to the Union-wide network development plan for hydrogen. Such a review may be accompanied, where appropriate, by a comprehensive plan to remove such barriers and accelerate the implementation of the priority corridors for hydrogen and electrolysers.
2. ACER shall provide an opinion on the national hydrogen transmission network development plans where relevant to assess their consistency with the Union-wide network development plan for hydrogen. If ACER identifies inconsistencies between a national hydrogen transmission network development plan and the Union-wide network development plan for hydrogen, it shall recommend amending the national hydrogen transmission network development plan or the Union-wide network development plan for hydrogen as appropriate.
3. When developing the Union-wide network development plan for hydrogen, the ENNOH shall cooperate with the ENTSO for Electricity and with the ENTSO for Gas, in particular on the development of the energy system wide cost-benefit analysis and the interlinked energy market and network model including electricity, natural gas and hydrogen transport infrastructure as well as natural gas storage, hydrogen storage, LNG and hydrogen terminals and electrolysers referred to in Article 11 of Regulation (EU) 2022/869, the scenarios for the ten-year network development plans referred to in Article 12 of that Regulation and the infrastructure gaps identification referred to in Article 13 of that Regulation.
Union-level integrated network planning
1. During the transitional period until 1 January 2027, the ENTSO for Gas shall develop the 2026 Union-wide network development plan for hydrogen, with the full involvement of hydrogen transmission network operators and together with the ENNOH as soon as it is established. The 2026 Union-wide network development plan for hydrogen shall consist of two separate chapters, one for hydrogen and one for natural gas. The ENTSO for Gas shall without delay transfer to the ENNOH all the information, including data and analyses it collected during the preparation of the Union-wide network development plans for hydrogen by 1 January 2027.
2. The ENNOH shall develop the 2028 Union-wide network development plan for hydrogen pursuant to this Article and Article 60.
3. The ENNOH shall cooperate closely with the ENTSO for Electricity and the ENTSO for Gas to develop integrated Union-wide network development plans pursuant to Articles 32 and 60 of this Regulation and to Article 30 of Regulation (EU) 2019/943 respectively. That cooperation shall include in particular the following:
(a)
the ENNOH, together with the ENTSO for Electricity and the ENTSO for Gas, shall develop a single set of joint scenarios for the ten-year network development plans pursuant to Article 12 of Regulation (EU) 2022/869;
(b)
the ENNOH, the ENTSO for Electricity and the ENTSO for Gas, working together, shall each develop coordinated infrastructure gaps reports within the framework of the Union-wide ten-year network development plans pursuant to Article 13 of Regulation (EU) 2022/869;
(c)
within six months of approval of the joint scenarios report pursuant to Article 12(6) of Regulation (EU) 2022/869 and every two years thereafter, the ENNOH shall publish the infrastructure gaps reports developed within the framework of the Union-wide ten-year network development plans;
(d)
the ENNOH shall draft a single sector draft methodology for an energy system wide hydrogen cost-benefit analysis and a consistent and progressively integrated model together with the ENTSO for Electricity and the ENTSO for Gas pursuant to Article 11 of Regulation (EU) 2022/869, which shall be consistent with the methodologies developed both by the ENTSO for Electricity and the ENTSO for Gas pursuant to Article 11 of Regulation (EU) 2022/869 and shall provide transparency with regard to the most cost-efficient solutions across energy carriers, including non-infrastructure-based solutions;
(e)
the methodologies referred to in point (d) of this paragraph shall be applied for the preparation of each subsequent Union-wide network development plan for hydrogen developed by the ENNOH pursuant to Article 60 of this Regulation;
(f)
the ENNOH shall develop the joint scenarios, infrastructure gaps reports, the single sector draft methodology and the integrated model in accordance with Articles 11, 12 and 13 of Regulation (EU) 2022/869;
(g)
where decisions need to be made to ensure system efficiency as defined in Article 2, point (4), of Directive (EU) 2023/1791 across energy-carriers the Commission shall ensure that the ENTSO for Electricity, the ENTSO for Gas and the ENNOH cooperate closely;
(h)
the ENNOH, the ENTSO for Electricity and the ENTSO for Gas shall cooperate in an efficient, inclusive and transparent manner, they shall facilitate taking decisions by consensus and they shall develop the necessary working arrangements for the purpose of enabling such cooperation and ensuring their fair representation.
The ENNOH, together with the ENTSO for Electricity and the ENTSO for Gas, may establish working groups to fulfil its obligations pursuant to the first subparagraph, points (a), (b) and (d) and shall ensure fair and equal representation of the hydrogen, electricity and gas sectors in the working groups.
Costs of the ENNOH
The costs related to the execution of tasks of the ENNOH referred to in Article 59 shall be borne by the hydrogen transmission network operators and shall be taken into account in the calculation of tariffs. Regulatory authorities shall approve those costs provided that they are reasonable and appropriate.
Consultations by the ENNOH
1. While preparing the proposals pursuant to the tasks referred to in Article 59, the ENNOH shall conduct an extensive public consultation process, at an early stage and in an open and transparent manner, involving all relevant market participants, and, in particular, the organisations representing all stakeholders, in accordance with the rules of procedure referred to in Article 57. The consultation process shall accommodate stakeholder comments before the final adoption of the proposal, with the aim of identifying the views and proposals of all relevant stakeholders during the decision-making process. That consultation shall also involve regulatory authorities and other national authorities, producers, network users including customers, technical bodies and stakeholder platforms.
2. All documents and minutes of meetings related to the consultations referred to in paragraph 1 shall be made public.
3. Before adopting the proposals referred to in Article 59, the ENNOH shall indicate how the observations received during the consultation have been taken into consideration. It shall provide reasons where observations have not been taken into account.
ACER’s monitoring of the ENNOH
1. ACER shall monitor the execution of the tasks of the ENNOH referred to in Article 59 and report its findings to the Commission.
2. ACER shall monitor the implementation by the ENNOH of network codes and guidelines adopted by the Commission as laid down in Articles 72, 73 and 74. Where the ENNOH has failed to implement such network codes or guidelines, ACER shall request the ENNOH to provide a duly reasoned explanation as to why it has failed to do so. ACER shall inform the Commission of that explanation and provide its opinion thereon.
3. The ENNOH shall submit the draft Union-wide network development plan for hydrogen, the draft annual work programme, including the information regarding the consultation process, and the other documents referred to in Article 59 to ACER for its opinion.
Within two months of the date of receipt, ACER shall provide a duly reasoned opinion as well as recommendations to the ENNOH and to the Commission where it considers that the draft annual work programme or the draft Union-wide network development plan for hydrogen submitted by the ENNOH does not contribute to non-discrimination, effective competition, the proper functioning of the market or a sufficient level of cross-border interconnection. The ENNOH shall duly take into account ACER’s opinion and recommendations.
Regional cooperation of hydrogen transmission network operators
1. Hydrogen transmission network operators shall establish regional cooperation within the ENNOH to contribute to the tasks referred to in Article 59.
2. Hydrogen transmission network operators shall promote operational arrangements in order to ensure the optimum management of the network and shall ensure interoperability of the interconnected Union hydrogen system for facilitating commercial and operational cooperation between adjacent hydrogen transmission network operators.
Transparency requirements concerning hydrogen network operators
1. The hydrogen network operator shall make public detailed information regarding the services it offers and the relevant conditions applied, together with the technical information necessary for hydrogen network users to obtain effective network access.
2. In order to ensure transparent, objective and non-discriminatory tariffs and facilitate efficient utilisation of the hydrogen network, from 1 January 2031 hydrogen network operators or relevant regulatory authorities shall publish complete information on tariff derivation, methodology and structure.
3. The hydrogen network operators shall make public detailed information regarding the quality of hydrogen transported in their networks, which might affect network users.
4. The relevant points of a hydrogen network on which the information is to be made public shall be approved by the competent authorities after consultation with hydrogen network users.
5. The hydrogen network operators shall always disclose the information required by this Regulation in a meaningful, quantifiably clear, easily accessible and non-discriminatory manner.
6. The hydrogen network operators shall make public ex ante and ex post supply and demand information, including a periodic forecast and the recorded information. The regulatory authority shall ensure that all such information is made public. The level of detail of the information that is made public shall reflect the information available to the hydrogen network operator.
7. The market participants concerned shall provide the hydrogen network operator with the data referred to in this Article.
8. Further details required to implement the transparency requirements for hydrogen network operators, including further details on the content, frequency and form of information provision by hydrogen network operators, shall be laid down in a network code established in accordance with Article 72(2).
Record keeping in the hydrogen system
Hydrogen network operators, hydrogen storage operators and hydrogen terminal operators shall keep at the disposal of the national authorities, including the regulatory authorities and the national competition authorities, and the Commission, all information referred to in Articles 34 and 66 and in point 4 of Annex I for a period of five years.
Presumption of conformity of practices with harmonised standards for hydrogen
Practices which are in conformity with harmonised standards, or parts thereof, the references of which have been published in the Official Journal of the European Union shall be presumed to be in conformity with the requirements laid down in delegated acts adopted pursuant to Article 72(1), point (b).
Common specifications for hydrogen
1. The Commission may lay down common specifications in a network code pursuant to Article 72(1), point (b), of this Regulation or may adopt implementing acts establishing common specifications for the requirements laid down in Article 50 of Directive (EU) 2024/1788, where:
(a)
those requirements are not covered by harmonised standards, or parts thereof, the references of which have been published in the Official Journal of the European Union;
(b)
the Commission has requested, pursuant to Article 10(1) of Regulation (EU) No 1025/2012, one or more European standardisation organisation to draft a harmonised standard for those requirements and at least one of the following conditions has been fulfilled:
(i)
the request of the Commission has not been accepted by any of the European standardisation organisations;
(ii)
the Commission observes undue delays in the adoption of the requested harmonised standards;
(iii)
a European standardisation organisation has delivered a standard that does not entirely correspond with the request of the Commission; or
(c)
the Commission has decided in accordance with the procedure referred to in Article 11(5) of Regulation (EU) No 1025/2012 to maintain with restriction or to withdraw the references to the harmonised standards, or parts thereof, by which those requirements are covered.
The implementing acts referred to in the first subparagraph of this paragraph shall be adopted in accordance with the examination procedure referred to in Article 81(3).
2. In the early preparation of the draft implementing act establishing the common specifications referred to in paragraph 1, the Commission shall gather the views of relevant bodies or expert groups established under relevant sectorial Union law, and shall duly consult all relevant stakeholders. On the basis of that consultation, the Commission shall prepare the draft implementing act.
3. Practices which are in conformity with common specifications, or parts thereof, shall be presumed to be in conformity with the requirements laid down in the delegated acts adopted pursuant to Article 72(1), point (b), to the extent that those requirements are covered by such common specifications or parts thereof.
4. Where a harmonised standard is adopted by a European standardisation organisation and proposed to the Commission for the purpose of publishing its reference in the Official Journal of the European Union, the Commission shall assess the harmonised standard in accordance with Regulation (EU) No 1025/2012. When the reference of a harmonised standard is published in the Official Journal of the European Union, the Commission shall repeal implementing acts referred to in paragraph 1 of this Article, or parts thereof which cover the same requirements referred to in paragraph 1 of this Article.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
