Legal framework: permissions and restrictions (and Ownership constraints (unbundling))

This LAP concerns the legal framework status covering authorised bodies overseeing and involved with the injection of hydrogen and varying hydrogen concentration levels in the TSO high pressure gas transmission system, along with potential changes to the regulatory framework to support enhanced hydrogen injection and utilisation

Glossary:

Legal framework: permissions and restrictions (and Ownership constraints (unbundling)) represent the existing national legal framework for the TSO to carry out hydrogen activities, which is normally restricted to natural gas. Ownership constraints refer to the constraints related to ownership associated with the process of injecting
Is it a barrier?
Yes
Type of Barrier
Regulatory gap
Assessment Severity
2

Questions:

Question 1 Which is the responsible authority/legal entity for the permission of the connection/injection of hydrogen in the gas grid?
Finnish Safety and Chemicals Agency (Tukes) and Finnish energy company Gasum (which owns the gas grid)
Question 2 What is permitted or restricted according to national legislation under your responsibility as TSO regarding the transport of pure hydrogen and mixtures of hydrogen and natural gas.
The requirements concerning natural gas grid issues are in the Decree on safety of handling natural gas (Valtioneuvoston asetus maakaasun käsittelyn turvallisuudesta) 551/2009. Injection of hydrogen to natural gas grid is not mention in this Decree.
Question 3 Is there a maximum concentration defined that you are allowed to transport as a TSO? (e.g. are you allowed to transport 100% hydrogen)
Maximum of 1 % of hydrogen in natural gas is set by TSO. This amount is acceptable by all the clients.
Question 4 What is the maximum allowed concentration in your country for injection in the gas grid on transmission level?
Maximum of 1 % of hydrogen in natural gas is set by TSO. This amount is acceptable by all clients.
Question 5 In case the maximum hydrogen concentration in your transmission grid (system) is less than 100%, is it allowed to inject pure hydrogen- 100%? into gas grid on transmission level (up to the allowed concentration)? If no, who is responsible for the blending with natural gas? Is there an obligation for the TSO to provide the necessary natural gas for blending the hydrogen (with several EU Directives transposed into national legislations the functions of gas grid operator and natural gas supplier are separated)
TSO monitors the quality of the gas entering the grid. The gas must be acceptable for all the clients. TSO has set a limit of max 1 % of hydrogen in natural gas.
Question 6 Are there specific requirements for increasing or decreasing the admissible threshold of hydrogen concentration (upstream and downstream networks, infrastructure elements and appliances with lower tolerance)? If yes: please describe.
There are no current requirements.
Question 7 Are there specific restrictions/permissions for the transport of hydrogen other than “concentration” and “quality”, if yes which ones?
No
Question 8 If it can be guaranteed that the gas is on the required quality specification (on spec) at the next customer, is it allowed to feed in off-spec gas (read: a higher concentration of Hydrogen)?
No. TSO monitors the gas entering the grid. The gas must be acceptable for all the clients. TSO has set a limit of max 1 % of hydrogen in natural gas.
Question 11 Is there a difference in legal and administrative restrictions between connections for hydrogen injection into TSO and DSO-networks? If so could you please specify the differences?
No difference.
Question 12 Are there specific national (add-on) restrictions for the connection/injection of hydrogen in TSO networks compared to the connection/injection of natural gas? If yes: please name them. Are there other requirements for the injection of H2NG-blends compared to pure Hydrogen?
The gas entering the natural gas grid must be acceptable for all the clients. Maximum hydrogen content is 1 % .
Describe the comparable technology and its relevance with regard to hydrogen
Injection of biogas to natural gas grid

National legislation:

EU Legislation:

  • Directive 2009/73/EC concerning common rules for the internal market in natural gas
    Directive 2009/73/EC establishes common rules for the transmission, distribution, supply and storage of natural gas.

    Its provisions and obligations apply to Hydrogen Gas by virtue of Article 1 (2), which states that the rules established by this Directive for natural gas, including LNG, shall also apply in a non–discriminatory way to biogas and gas from biomass or other types of gas in so far as such gases can technically and safely be injected into, and transported through, the natural gas system.

    Article 25 establishes the “Tasks of the distribution system operator” which include: ensuring the long-term ability of the system to meet reasonable demands for the distribution of gas […];shall provide any other distribution, transmission, LNG, and/or storage system operator with sufficient information […] as well as to ensure that the system operator does not discriminate between system users or classes of system including, including e.g. when setting rules for the charging of system users, etc

    Article 32 sets the rules on “Third party access”: access to the transmission and distribution system, and LNG facilities shall be based on published tariffs, applicable to all eligible customers, including supply undertakings, and applied objectively and without discrimination between system users.
  • Regulation 715/2009 on conditions for access to the natural gas transmission networks
    Regulation 715/2009 sets non-discriminatory rules for access conditions to (a) natural gas transmission systems; (b) LNG facilities and storage facilities taking into account the special characteristics of national and regional markets

    To achieve this, it sets harmonised principles for tariffs, or the methodologies underlying their calculation, for access to the network, but not to storage facilities, the establishment of third-party access services and harmonised principles for capacity-allocation and congestion-management, the determination of transparency requirements, balancing rules and imbalance charges, and the facilitation of capacity trading.
  • Regulation (EC) No 713/2009 of the European Parliament and of the Council of 13 July 2009 establishing an Agency for the Cooperation of Energy Regulators
    Article 1 Project matter and scope
    This regulation aims at:
    (a) setting non–discriminatory rules for access conditions to natural gas transmission systems taking into account the special characteristics of national and regional markets with a view to ensuring the proper functioning of the internal market in gas;

    Article 8 “Tasks as regards terms and conditions for access to and operational security of cross border infrastructure
  • Commission Regulation (EU) 2015/703 of 30 April 2015 establishing a network code on interoperability and data exchange rules
    The network code on interoperability aligns the complex technical procedures used by network operators within the EU, and possibly with network operators in the Energy Community and other countries neighbouring the EU.Article 7, Measurement principles for gas quantity and quality. In addition to interconnection points, Article 17 shall apply to other points on transmission network where the gas quality is measured. Article 18 shall apply to transmission systems. This Regulation may also apply at entry points from and exit points to third countries, subject to the decision of the national authorities.