A spokesperson for the Verbandes kommunaler Unternehmen (VKU) welcomed the EU Commission's decision on 11 April as a „great success for municipal utilities and for a successful hydrogen ramp-up in Germany“. In the VKU's view, a „business separation between gas and hydrogen networks“ would have virtually prevented numerous municipal utilities from „initiating an investment-proof transformation of the gas infrastructure and thus organising the production and distribution of hydrogen“.
„In addition, the approximately 1.8 million industrial and commercial customers connected to the gas distribution network in Germany would have been deprived of an elementary option to reduce their CO2 emissions. After all, many of these customers, especially in the manufacturing sector, will continue to rely on gaseous energy sources in the future.“
Following the vote in the EU Parliament, the EU Council of Ministers still needs to formally approve the political agreement. Following this, nothing stands in the way of publication of the directive and regulation of the EU gas/H2 internal market package in the EU Official Journal. Implementation of the directive will then be subject to the law of the member states.
Green light also for the electricity market reform
„We see many elements as positive. Above all, the fact that the EU is sticking to the merit order system and thus the basic mechanisms of the electricity market“, said the VKU on the European Commission's decision to reform the electricity market.
„The current market model has served the integration of the European electricity market well. The merit order is a key element for effective and efficient pricing and therefore for the utilisation planning of power plants. However, the European safeguarding of so-called capacity mechanisms is still open. In order for municipal utilities to maintain a secure supply despite volatile renewable energies, it is crucial to not only adequately honour the energy produced, but also – and to a far greater extent and in a different way than before – the provision of reliable generation capacity“, a spokesperson continued.
„In a capacity market, suppliers are therefore rewarded for being on standby like a fire brigade: They stand ready with power plant capacities to step in within minutes during 'dark doldrums'. However, investments in the construction of power plants and storage facilities that only run for a few hours a year are hardly feasible if they have to be amortised through the peak load prices that occur during these hours.“
Good legal framework conditions and planning security could incentivise the necessary investments.
(Quelle: VKU)
