Decarbonising gas markets: How could the EU Gas Package impact the UK?

Descriptions

The Department for Energy Security and Net Zero is hosting a pre-tender market engagement event to seek input on a potential upcoming research project. This project will examine the impacts of the EU's Hydrogen and Decarbonised Gas Markets Package, adopted on 21 May 2024, on the UK's natural gas, biomethane and hydrogen markets. This event is an opportunity for potential suppliers to help refine the project scope, provide insight into market capacity, and offer a more accurate understanding of project costs. The insights gained will guide the Department in commissioning research that focuses on: -Identifying areas of regulatory divergence between the UK and the EU. -Evaluating the impacts of divergence on market dynamics, competition, and energy security. -Assessing the impacts on natural gas, hydrogen, and biomethane trade between the UK and the EU. As an output, we would be seeking a research paper divided into two parts. Part A will be an analysis of the potential upcoming areas of regulatory divergence, including an assessment of the risks and opportunities for the UK, including to security of supply. Part B should investigate the connection between the extent to which UK gas market regulation diverges from the EU's and potential outcomes through scenario modelling. Key outputs from this could include, but are not limited to, cost of production, demand, trade volumes, cost of trade, and required infrastructure and investment to facilitate production, transport and trade. Your expertise will help shape a more robust, targeted research project that supports both UK-EU energy cooperation and policy recommendations for a decarbonised future. This project remains subject to final sign-off and we will use feedback from the market engagement event to inform the value of the project. This EME is available to all but the Authority reserves the right to explore the procurement being run through a framework. The event will be an online Microsoft Teams presentation on Friday 27th September at 11:00 BST. Please register to attend the event at the following link: https://forms.office.com/e/UBfkwWDHQA