Amendment to the Energy Industry Act: Gas Grids Must Become Infrastructure for Climate-Neutral Molecules

This afternoon, the German Bundestag’s Committee on Economic Affairs and Energy discussed the amendment to the Energy Industry Act (EnWG) aimed at implementing the EU Gas and Hydrogen Internal Market Package. From the perspective of the association Die Gas- und Wasserstoffwirtschaft, the amendment is an important step toward further developing the existing gas infrastructure and establishing a reliable regulatory framework for the ramp-up of hydrogen and biomethane. Dr. Timm Kehler, Managing Director of Die Gas- und Wasserstoffwirtschaft, commented:

“The EnWG amendment is a key milestone for the transformation of our energy infrastructure. What matters now is that the legislation focuses not on decommissioning, but on greening the system. Gas networks are not a sunset model — they are the prerequisite for bringing hydrogen, biomethane, and other climate-neutral molecules to market quickly and efficiently.

With regard to the hydrogen core network, investment-friendly financing conditions are now essential. The current framework does not yet adequately reflect the risks associated with the market ramp-up. Anyone seeking to mobilize private capital for the development of the hydrogen economy must design risk-sharing mechanisms, returns on equity, and refinancing periods in a way that makes investments genuinely viable. This also applies to regional hydrogen networks, which are crucial for connecting industry, SMEs, and distribution grid structures.

At the same time, biomethane must be permanently secured as an integral component of a climate-neutral energy supply. Biomethane is already available today, storable, and beneficial to the energy system. This requires a national biomethane strategy, long-term grid connection security for at least 20 years, and objective criteria for biomethane suitability areas. The transformation of gas networks must not come at the expense of existing and future investments in renewable gases.

The direction is right, but the draft legislation still needs to be sharpened in key areas. The transformation will only succeed if security of supply, investment certainty, and affordability are considered together.”