04/14/2023
Source: Energy & Management Powernews
Gas grid operators are adapting their infrastructure planning to meet the European Union's new climate policy and geostrategic goals.
The umbrella organization of transmission system operators (TSOs), Entsog, has submitted amendments to the Ten Year Network Development Plan (TYNDP) for the development of network infrastructure from 2020. The new TYNDP includes, for the first time, an assessment of investments to produce and import renewable and low-emission gases such as hydrogen. Market participants have until May 19 to comment.
The proposal for a new TYNDP takes into account the "dramatic changes over the past year" and takes into account the new projects to stabilize and secure supply, Entsog President Bart Jan Hoevers said at the presentation in Brussels. "This report maps out the most efficient way for Europe to achieve its energy and climate policy goals," he said."
For the first time, the 2022 TYNDP also includes green gas projects: new hydrogen pipelines and projects to upgrade existing natural gas pipelines to transport hydrogen, projects to integrate hydrogen into existing infrastructure, biomethane plants and other infrastructure projects to contribute to the decarbonization of the gas industry. This category includes 215 of the 358 investments to be realized in the coming years.
Successful infrastructure development bears fruit
The industry's commitment is a prerequisite for taking advantage of the numerous opportunities to establish interconnectivity between methane, biomethane, hydrogen and the electricity industry, said Entsog Secretary General Piotr Kus. In addition, he said, new projects have been included in the TYNDP to achieve the REPowerEU program's goals by 2030. Some of these will be funded by the EU as "projects of European significance"(PCI).
The development of gas infrastructure in recent years has increased security of supply, improved integration of the internal market and led to greater competition and sustainability, Entsog's report said. More interconnectors, import pipelines and LNG terminals have led to price alignment in the EU, created spare capacity for imports and spurred the switch from coal to gas, it said.
With regard to natural gas consumption, the TYNDP projects that demand will decline only slightly from the current 3,800 billion kWh per year until 2030. After that, demand would decline. In 2040, depending on the assumptions made, between 2,200 billion kWh and 3,000 billion kWh of natural gas would still be needed. Gas consumption in the building sector in particular would decline.
Parallel development of gas and hydrogen networks planned
Hydrogen would gradually replace natural gas as an energy carrier after 2030. It could be produced "on a significant scale" in the EU. But good conditions for a competitive supply exist in third countries outside Europe, he said. The EU envisions producing and importing 10 million tons of hydrogen itself by 2030.
For the first time, the new TYNDP envisions the parallel development of a natural gas and a hydrogen pipeline network. However, only those hydrogen projects that are concretely planned by investors were initially considered. This does not mean that only there is a demand, emphasizes Entsog. In most cases, these projects are not sufficient to meet the expected demand. There is therefore room for "smart investments" that take into account the profile of demand.
This is determined not least by strong, seasonal fluctuations. In winter, for example, less green electricity is available for electrolysis. However, the demand for hydrogen, especially for power generation, is higher in winter. This problem could be solved by storage. Consumers, however, could also switch to other energy sources.
The Ten Year Network Development Plan of Entsog is available on the Internet.
Author: Tom Weingärtner
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