Utilities across Germany, Austria and Switzerland are preparing to wind down their gas networks after losing confidence in using pipelines for hydrogen transport. A new Horvath survey shows the sector shifting sharply toward electrification and storage.
Horvath reported that “the assessment that gas networks will no longer play a central role in the future is becoming increasingly widespread.” The consultancy warned that “stagnation and decline prevail in the gas business.”
Germany’s 2045 net zero target means fossil gas will be largely phased out. While the grid could theoretically carry biogas or green hydrogen, these fuels are expected to be too costly and inefficient for heating. Experts estimate that more than 90% of the distribution network may become obsolete.
Among 91 utilities surveyed, 65% plan to cut gas grid investment in the coming years. 61% expect to significantly reduce or even decommission networks by 2040. Only 4% still see potential for full hydrogen conversion.
Two thirds of companies plan to at least double spending on electricity storage as they prepare for an electrified heating sector. This contrasts sharply with the debate three years ago when many firms still promoted hydrogen-ready infrastructure.
Germany’s nearly 600,000 km gas grid has long delivered predictable revenue for operators. Now, new rules will allow utilities to phase out networks and disconnect customers with long-term notice.
A VKU survey of more than 600 suppliers found 46% unsure about the future of their grids. One fifth plan to fully decommission them and shift to heat pumps and district heating, while almost one in four expects a mix of decommissioning and conversion to green gases.
Utilities abandon hopes for hydrogen grids as gas networks face decline appeared first on Energy Live News.