How gas markets may need to evolve as the energy system changes
We’ve published NESO’s first Gas Market Roadmap, which sets out where market arrangements may need to evolve to support security of supply, affordability and decarbonisation through the energy transition.
Gas continues to play an important role in the energy system, supporting peak energy demand, heating, industrial activity, electricity system flexibility and wider energy security. As the system transitions to cleaner sources of energy, the way gas is produced, transported and used will change.
The roadmap is intended to inform, not determine, future policy decisions or detailed reforms. It identifies potential projects and areas for further work where further evidence, coordination and action may be needed across the government, regulation, networks and industry to support the long-term evolution of Britain's gas market.
Three areas where gas market arrangements may need to evolve
The Gas Market Roadmap identifies three central challenges:
- Gas Market Transition: how charging, cost recovery, regulation and network transition issues may evolve as gas demand and the consumer base changes.
- Market Resilience: how gas market arrangements can continue to support security of supply and meet peak energy demand as supply and demand patterns change.
- Emerging Markets: how biomethane, hydrogen and CCUS markets could develop and what that may mean for the wider gas market.
Building the evidence base for future decisions
Alongside the roadmap, we have published further analysis on the potential role of biomethane and an independent AFRY study on the potential system impacts of hydrogen infrastructure in Great Britain.
Together, these publications form part of our wider whole-system evidence base, helping government, the regulator and industry understand how today’s operational realities connect to the long-term decisions needed to support a secure, affordable and clean energy system.
The biomethane insight explores how sustainable biomethane could be scaled up through to 2050, and the potential value this could deliver across the energy system. The report sets out findings on the benefits biomethane could deliver in areas including low-carbon dispatchable power, hard-to-electrify industry and transport, and greenhouse gas removals. Collaboration across sectors will be important to understand the opportunities and risks of scaling up biomethane.
The independent AFRY study was commissioned to strengthen the evidence base on the potential role of an interregional hydrogen backbone in Great Britain’s future energy system. It explores the possible system impacts, benefits, risks and trade-offs of developing hydrogen network infrastructure across regions. It informs discussion and future decision-making without endorsing a specific infrastructure pathway or pre-judging policy, regulatory or investment decisions.
View the Biomethane and Hydrogen reports
What happens next?
Over the next two years, we will progress the priority areas identified in the 2026 Gas Market Roadmap, working with DESNZ, Ofgem, the Gas Advisory Council, National Gas and wider industry to build the evidence base for future decisions.
This work will focus on the three central challenges set out in the roadmap: how gas market arrangements may need to adapt through the transition, how they can continue to support resilience and security of supply, and how emerging markets such as biomethane, hydrogen and CCUS could develop.
Future roadmap cycles will build on this first publication by tracking policy and regulatory developments, testing options and supporting more coordinated decision-making across the energy sector.