Integration of Biomethane: Expert Opinion on the Implementation of the EU Gas Directive in the German Energy Industry Act

A legal opinion published in January concludes that while the current approach to transposing the EU Gas Directive (EU Gas Directive) into German law meets European requirements, several aspects require improvement. The study was commissioned, among others, by BIOGEEN, a member of the Biomethane Task Force, thus ensuring that industry perspectives were specifically incorporated into the assessment.

The EU Gas Directive establishes the overarching framework for the decarbonization of the natural gas and hydrogen markets. Its focus is on regulatory frameworks for network access, market organization, and infrastructure development – factors of strategic importance for the ramp-up of biomethane. For Germany, the EU Gas Directive obligates it to amend the Energy Industry Act (E-EnWG) – the central legal basis for pipeline-bound energy – to ensure the effective implementation of European legal requirements and to avoid legal uncertainties and potential liability risks.

The EU Gas Directive establishes the overarching framework for the decarbonization of the natural gas and hydrogen markets. The analysis concludes that risks of additional complexity exist, particularly in the design of non-discriminatory network access regulations and in transparency and standardization obligations. Inconsistent procedures could delay investment decisions and hinder the integration of renewable gases into existing structures. Accordingly, a clear regulatory framework is of paramount importance.

Against this backdrop, the report emphasizes that questions of cost allocation for network connections and adjustments play a key role. Without reliable mechanisms, economic barriers could arise, disproportionately burdening smaller market participants. Governance aspects surrounding data access and market communication are also considered relevant, as they directly influence the market integration of new gases.

The detailed regulatory design remains a crucial lever for scaling and market penetration. At the same time, open issues in the legislative process offer important avenues for practical perspectives and dialogue with policymakers.