The legal framework for hydrogen transportation in Germany is based on the Energy Industry Act (EnWG) and a series of ordinances and regulatory requirements.
The individual regulations in detail:
The amendment to the EnWG, which came into force in May 2024, created a legal framework for regulated hydrogen grids for the first time. Operators can voluntarily subject their grids to the regulatory regime (opt-in). The principle of non-discriminatory grid access in accordance with Section 28n EnWG applies to these regulated hydrogen grids. In addition, the amendment also provides for mandatory regulation for operators of certain grids, in particular those that are part of the hydrogen core grid or implement measures of the hydrogen network development plan (NEP).
Similar to the natural gas sector, network access for hydrogen is organized using an entry-exit model in which operators of hydrogen networks grant third parties non-discriminatory access, develop common contractual standards and cooperate with each other to enable access across several networks with just one entry and exit contract.
The Hydrogen Network Tariffs Ordinance, which came into force in 2023, regulates the economic aspects of grid operation for hydrogen pipelines, with special regulations applying in some cases to the hydrogen core grid. The ordinance stipulates that the network tariffs must be structured in such a way that they cover the costs of efficient grid operation. Operators are obliged to document their charging systems transparently and submit them to the Federal Network Agency. Subsidies from subsidies and other cost-reducing revenues and income are taken into account and reduce the grid costs accordingly. In addition, an annual comparison of planned and actual costs is planned in order to identify and balance out deviations between planned and actual costs. These regulations are intended to ensure fair and transparent access to hydrogen networks and at the same time promote investment in network expansion
There is a separate regulatory framework for network tariffs in the hydrogen core grid that takes into account the special nature of the market ramp-up. This is regulated in Section 28r EnWG and is further specified by the Federal Network Agency’s “WANDA” regulation. In principle, the hydrogen core network will be developed in the private sector, i.e. it is to be refinanced by 2055 through network charges. The costs of developing and operating the hydrogen core network will be partly shifted into the future so that the first network users do not have to bear the full costs alone, but the costs can be spread over a much larger number of network users at a later date. This intertemporal cost allocation mechanism enables marketable charges in the ramp-up phase. The legal basis for the intertemporal cost allocation mechanism at European level is Article 5 (3) of Regulation (EU) 2024/1789 as part of the EU gas market package.
This mechanism works as follows: In order to limit the costs for the first users, the grid charges are initially capped (so-called ramp-up charge) and an amortization account compensates for any initial shortfall in revenue with additional revenue later on when more grid users use the grid.
The ramp-up fee in the hydrogen core grid is a uniform nationwide network tariff that applies at all entry and exit points. It is intended to fully cover the costs incurred during the ramp-up phase and at the same time be in line with the market. The Federal Network Agency set a fee of €25/kWh/h/a on July 14. The ramp-up fee will apply from 2025, will be inflated annually and reviewed every three years.
The consultation on supplementing the “WANDA” regulation, which came into force in June 2024, is also an important building block for the further development of the regulatory framework. The differentiated pricing provided for therein creates a basis for pricing that is based on causation and efficient grid usage. At the same time, it must be ensured that discounts and multipliers do not jeopardize the refinancing of the hydrogen core network.
Both consultations are closely related and must therefore also be considered in combination. The interaction of multipliers and discounts must therefore also be taken into account when determining the ramp-up fee in order to avoid a structural deficit in the amortization account.
The requirements of the Gas and Hydrogen Network Development Plan are defined by the Energy Industry Act (Sections 15a to 15d EnWG), which will be amended in 2024, and based on the EU-wide network development plan (Regulation (EC) No. 715/2009).
§ Section 15a of the Energy Industry Act defines the central elements of network development planning for gas and hydrogen. Accordingly, the operators of transmission networks and regulated operators of hydrogen transportation networks are obliged to draw up an integrated network development plan for gas and hydrogen every two years – for the first time in 2025. To coordinate this process, they have jointly established a coordination office in accordance with Section 15a (2) EnWG as of May 30, 2024. This office is responsible for tasks such as preparing the scenario framework and drawing up the network development plan. It also operates a database containing grid models and capacity data to ensure transparent and comprehensible planning. All relevant grid operators are obliged to provide the coordination body with the necessary information and to participate in the creation of the grid development plan. The aim is to ensure that the gas and hydrogen infrastructure is developed efficiently, in line with demand and in accordance with climate targets.
The Coordination Office submits the drafts of the transmission system operators and the operators of hydrogen transport networks to the Federal Network Agency for review. Authorities, important market participants and the public are consulted.
The Federal Network Agency is developing supplementary specifications to further shape the grid access regime. The “WasABi” specification is intended, among other things, to define the balancing rules and role models for market players. The “WaKandA” specification deals in particular with regulations on capacity booking, capacity products, transparency and grid information. The specifications were finally consulted on by the Federal Network Agency. The process is scheduled to be completed by summer 2025. Both specifications are key building blocks for the operational implementation of a functioning internal hydrogen market.
The European gas and hydrogen market package, which came into force in 2024, created an EU-wide regulatory framework for hydrogen infrastructure for the first time. The package consists of Regulation (EU) 2024/1789 on the internal market for renewable gas, natural gas and hydrogen, which has been in force since February 5, 2025, and Directive (EU) 2024/1788 (Internal Gas Market Directive with extension to hydrogen), which must be transposed into national law by August 5, 2026 at the latest.
This includes regulations on grid access, fees, infrastructure planning, market transparency and unbundling. A central element is the establishment of a European network development process. The European Network of Network Operators for Hydrogen (ENNOH) – the counterpart to ENTSOG in the gas sector – is currently being created to accompany this. The formal establishment of ENNOH has not yet been completed, but operational tasks such as a European network development plan are planned from 2026.
