BBH provides report for the German Association of Local Public Utilities (VKU) on gas grid transformation

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The Building Energy Act (Gebäudeenergiegesetz) and the Heat Planning Act (Wärmeplanungsgesetz) are two essential factors for a successful heat transition. A brief expert report of the BBH group on the gas grid transformation, commissioned by the VKU, has been published shortly before the possible vote in parliament.

The BBH group‘s brief expert report on scheduling the gas grid transformation according to sec. 71k subs. 1 no. 2 draft Building Energy Act in the light of concession law and future unbundling requirements highlights the hydrogen grid expansion areas provided for in the Building Energy Act and the Heat Planning Act. Legal requirements for particularly gas distribution grid operators are needed to ensure the planned transformation from the gas to the hydrogen grid in these areas. The team of BBH partner Prof. Dr. Christian Theobald comes to the following conclusions:

  1. A continuous commitment to expanding the hydrogen grid is not guaranteed since, under the current regulation, the binding concession contract for gas distribution grid operators has a maximum term of 20 years. Changes to German concession law seem inevitable.
  2. The European Commission‘s restrictive position towards unbundling provisions in the revision of the EU Gas Market Directive poses an obstacle to establishing and operating a hydrogen grid.
  3. In addition, the necessary connection of gas distribution grids to the core hydrogen grid is not provided for in sec. 28r Energy Industry Act (Energiewirtschaftsgesetz) and thus not ensured.

BBH partner and lawyer Prof. Dr. Christian Theobald emphasises: “We have to find solutions for the previously mentioned aspects if we want the heat transition to succeed.”

The BBH group is a leading provider of advisory services for energy and infrastructure companies and their customers. Energy and supply companies, particularly public utilities, municipalities and local authorities, industrial companies and international groups are among its core clients. The BBH group advises these and many other companies and organisations in all legal matters and also assists them with business and strategic advice.

Contact:

Prof. Dr. Ines Zenke
Rechtsanwältin/Lawyer, Partner
Phone +49 (0)30 611 28 40-179
ines.zenke@bbh-online.de

Visit the BBH group online at www.die-bbh-gruppe.de, www.bbh-blog.de, twitter.com/BBH_online or instagram.com/die_bbh_gruppe.

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