Głowacki Law Firm

Power-to-gas technology
European Union Electricity Market Glossary


Regarding electricity tariffication, power-to-gas producers are generally treated as consumers and, as such, they are charged with the same tariffs and levies as any other consumer of the same size and features (Regulatory Challenges for a Sustainable Gas Sector, CEER Public Consultation Paper, Ref: C18-RGS-03-03, 22 March 2019, p. 18, 19).


The said CEER Public Consultation Paper of 22 March 2019 differentiates the two diverging, from the regulatory (and technical) point of view, situations with the involvement of power-to-gas installations:


- first, when power-to-gas plant produces gas taking electricity from the network, and this gas is exclusively stored and used to locally re-generate electricity which is then re-fed into the electricity network, and


- second, when gas produced through power-to-gas installation is injected in the gas network.


In the first case, power-to-gas installations only use the electricity network.


Hence, in the CEER’s opinion, those installations can be considered as electricity storage infrastructures and they could be treated as such in terms of tariff settings.


CEER invokes in this regard the examples of some countries where pump storages are not charged with network tariffs for the electricity used to pump water in order to avoid double charging.


According to the CEER, similar provisions could also be applied to power-to-gas plants.


In the second configuration, power-to-gas installations make use of the gas network and, in case electricity is taken from the network, they also use the electricity network (there may be also the configuration where the power-to-gas installation is directly connected to renewable power plants and do not make use of the electricity network).


In this situation the said power-to-gas installations need to be considered differently from the gas sector point of view on the one hand, and the electricity point of view, on the other.


In the former perspective they could be treated as gas producers that inject gas into the network, in the latter, they are high-intense consumers, where the electricity is the main input of production (if there are special provisions for high-intense consumers, they could be applied also to power-to-gas installations).





Power-to-gas technology - regulatory chronicle 




22 March  2019


Regulatory Challenges for a Sustainable Gas Sector, CEER Public Consultation Paper, Ref: C18-RGS-03-03






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Last Updated on Sunday, 09 June 2019 12:23


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