Connection policy for the hydrogen network

The policy is a substantiation of Hynetwork’s commission from the minister to develop a national hydrogen network. Its focus is to proactively address the developing hydrogen market in the Netherlands.

The policy contributes to transparency regarding connection conditions for customers and it ensures non-discriminatory treatment of connection requests. Below we discuss the key topics from the connection policy.

Hynetwork distinguishes between the concepts of a network, a network expansion, and a customer connection:

• The network is the infrastructure within the scope of the roll-out plan.
• A network expansion is additional infrastructure built for multiple customers in addition to the roll-out plan. The costs of network expansions will be recouped through the transport tariff.
• A customer connection is infrastructure dedicated to a single customer, and that customer bears the associated costs. 
• A connection set-up is the minimum required preparatory infrastructure that prevents future drilling in the main pipeline (also called a split tee) and is constructed for one or more future connecting pipes. They are paid for by the requesting contract party.

Ideally, we will build infrastructure to serve as many parties as possible simultaneously, utilising network extensions. This approach ensures the lowest costs across the entire network.

Throughout this process, Hynetwork acts as a prudent network operator. That means Hynetwork imposes an additional condition for constructing a network expansion: it shall not result in a higher transport tariff. This means that the investment costs need to be in reasonable proportion to the anticipated additional transport booking.

As the national network operator, Hynetwork is focused on connecting parties across the Netherlands that use large volumes of hydrogen and/or require a high-pressure grid connection. This applies to all parties in the country. Simultaneously, Hynetwork’s primary task is to establish the national hydrogen network and connect the five large industrial clusters. Consequently, Hynetwork may choose to prioritise connecting the five clusters over individual connections (within the five clusters or in cluster six) if the primary task of connecting the five clusters is delayed.

Hynetwork has chosen to charge a lump sum connection fee to cover the costs of establishing a customer connection to the hydrogen network. This fee is directly invoiced to the connected party during the connection construction.

By doing so, Hynetwork ensures that the responsibility for pre-financing the customer connection remains with the connected party rather than with Hynetwork in its role as the expected network operator. This approach aligns with the practices of other network operators, such as TenneT, for connections to the national electricity grid. 

A recurring maintenance fee also will be charged for managing and maintaining the customer connection.

Hynetwork works to stay ahead of market developments. This means that even with limited commitment from parties, Hynetwork will study network expansions. However, investment agreements are necessary for the construction phase. We strongly encourage parties to collaborate, allowing them to be involved in the study phase and subsequent steps. This approach ensures compliance with the conditions for network expansion construction.