Internal Gas Market: Transformation Instead of Decommissioning – Right Direction, Open Questions Remain

Today, the German Federal Government adopted the legislative proposal to transpose the European Gas and Hydrogen Internal Market Package into national law, thereby setting key parameters for the further development of infrastructure and markets. Dr. Timm Kehler, CEO of the association Die Gas- und Wasserstoffwirtschaft, welcomes the cabinet decision as a foundation for a reliable and investment-secure transformation of gas and hydrogen markets.

“The draft legislation represents a significant improvement compared to the initial proposal and provides important momentum for the further development of the gas and hydrogen market. What matters most is this: the transformation of gas networks must be carried out with a sense of proportion—not through blanket decommissioning, but through the smart evolution of existing infrastructure. In this way, the draft acknowledges the high value of gas networks while simultaneously paving the way for new energy carriers such as hydrogen and biomethane.

It is particularly positive that there is no legal obligation to dismantle gas networks. Instead, the draft provides the necessary flexibility for repurposing and adaptation as demand patterns and areas of application evolve. The timelines set out in the proposal offer planning certainty for suppliers and, above all, for customers. Consumer protection is consistently taken into account: customers may only be disconnected from the grid if reliable and affordable alternatives are actually available.

We also see important progress with regard to renewable gases. The grid connection privilege for biomethane sends a strong signal for market ramp-up. At the same time, the implementation of the European requirements for the internal market for renewable and decarbonised gases—long advocated by us—lays the foundation for a market-based scale-up. What is still missing in Brussels, however, is sufficient momentum from Germany to enable European trade.

Nevertheless, key questions remain unanswered. Biomethane is still treated too much as a regional issue in the draft. Yet existing and modernised plants already make an important contribution to security of supply and the resilience of the energy system. They must therefore remain reliably integrated into the market in the future and be granted clear, uniform grandfathering provisions. Otherwise, central policy instruments such as the green gas quota cannot be effectively implemented.”