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Impacts of Greenhouse Gas Neutrality Strategies on Gas Infrastructure and Costs: Implications from Case Studies Based on French and German GHG-neutral Scenarios

Abstract

The European Union’s target to reach greenhouse gas neutrality by 2050 calls for a sharp decrease in the consumption of natural gas. This study assesses impacts of greenhouse gas neutrality on the gas system, taking France and Germany as two case studies which illustrate a wide range of potential developments within the European Union. Based on a review of French and German GHG-neutral scenarios, it explores impacts on gas infrastructure and estimates the changes in end-user methane price considering a business-as-usual and an optimised infrastructure pathway. Our results show that gas supply and demand radically change by mid-century across various scenarios. Moreover, the analysis suggests that deep transformations of the gas infrastructure are required and that according to the existing pricing mechanisms the end-user price of methane will increase, driven by the switch to low-carbon gases and intensified by infrastructure costs.

Funding source: This publication was supported by the French government under the framework of the programme “Investissements d’avenir”, managed by ANR (the French National Research Agency) under the reference ANR10-LABX-14-01.
Related subjects: Policy & Socio-Economics
Countries: France ; Germany
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2022-09-02
2022-10-05
http://instance.metastore.ingenta.com/content/journal3792
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