Ref. Ares(2022)3718318 - 17/05/2022
Ref. Ares(2022)4148847 - 03/06/2022
Biogas and biomethane in
Italy
Production and regulatory framework on grid
connection
May 2022
Biomethane is a growing renewable energy in the European Union,
with substantial potential to reduce dependence on natural gas
Biogas and biomethane combined are equivalent to 4.6% of
The potential of biomethane production is strong enough
the natural gas consumption of the EU
to deliver 35 bcm in 2030 (REPowerEU’s proposed target)
20% of gas imports
from Russia
Equivalent to 10% of
today’s natural gas
demand
Scope: EU, EFTA, Ukraine and Serbia. Source: European Biogas Association
This can be achieved by utilizing only sustainable feedstock:
•
Agricultural residues
•
Biogas and biomethane in 2020:
191 TWh or
18.0 bcm of energy
•
Livestock effluent
•
They are already the 5th renewable energy (11%) produced in EU
•
Sequential and intermediary crops
•
Increasing share of
biomethane (3 bcm in 2020)
•
Food waste
•
Germany, the United Kingdom and Italy are the countries with
•
Industrial and municipal wastewater
the highest biogas + biomethane production.
The voice of renewable gas in Europe
#
Italy is one of the leading biogas markets in Europe
Italy is the 2nd EU biogas producing country
23 TWh biogas production
14% of Europe’s biogas production
1,710 biogas plants
Italy is 2nd fastest growing biomethane market
in Europe
2.1 TWh biomethane production
X 4 Production growth in 4 years
(2018-2020)
23 biomethane plants at end of 2020
The voice of renewable gas in Europe
#
Source: European Biogas Association
Italy can make a substantial contribution to biomethane upscaling by
2030
Need for an enabling regulatory framework and on
Biomethane production potential by 2030
State’s support scheme
33 TWh / 3.1 bcm biomethane production
Italy has set a biomethane production target of
1.1 bcm per year by 2023 (2018 Decree).
3,1 bcm
Publication of a new State Decree is expected this
33 TWh
year to set up a support scheme for biomethane
production after 2022
Source: European Biogas Association
Transport is expected to be one of the major end-uses
The voice of renewable gas in Europe
#
Italian regulatory framework on grid connection (1/4)
Context
▪
The
Ministerial Decree 2 March 2018 considers proper to define an incentive legislative framework
that
promotes (especially for mobility)
the «production and use of biomethane». The decree
assigns to the National Regulatory Authority (ARERA) the task of issuing
provisions on the technical
and economic conditions for connecting biomethane production plants to natural gas networks.
▪
The
Legislative Decree 8 november 2021 n. 199 (RED II 2018/2001 EU transposition)
extends the
incentive measures introduced with Ministerial Decree 2 March 2018 also to
biomethane
producers who provide for its use in the transport sector and/or in other uses, including the
introduction of natural gas into the networks and the production of electricity and heat in
cogeneration plants.
▪
The topic is ultimately regulated by ARERA’s resolution published on 17 march
2020, which annex A
describes the «
Directives for the connection of biomethane plants to natural gas networks and
provisions on the determination of the quantities of biomethane eligible for the incentives».
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Italian regulatory framework on grid connection (2/4)
▪
Network operator: it manages the natural gas distribution or natural gas transport service, and it’s
responsible for the
safety and technical efficiency of the network. It also defines and publishes the
quality specifications (including for gas
odorization) for the injection of biomethane into its
network. Network operator could be both
TSO or DSO depending on whether the network involved
into the biomethane injection refers to the DSO or TSO's grid.
▪
Biomethane producer: it’s
responsible for the
authorizations for the construction and operation of
the biomethane production plant, and it
ensures that the biomethane to be introduced into the
network complies with the quality specifications (it also ensures the gas
odorization).
▪
Connection request: it’s submitted by the
biomethane producer, directly or through the upcoming
network user, for each biomethane production plant. The applicant can indicate the intention to
manage the authorization procedure for the construction of the network connection system
on its
own and/or to build the same network connection systems itself (otherwise carried out by the
network operator). The network operator evaluates the
feasibility of the connection and
communicates the result to the applicant.
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Italian regulatory framework on grid connection (3/4)
THE BIOMETHANE PRODUCER /
FEASIBILITY/
APPLICANT
REQUEST
ECONOMIC REQUIREMENTS
IMPLEMENTATION OF THE CONNECTION
ASSESSMENT
The applicant triggers the
The applicant releases a bank
process by making a connection
guarantee (calculated on the
Once the connection is
request and depositing € 2,000.
basis of the connection fee) in
completed, the applicant takes
In the request, the applicant
order to cover the expected
back the previously provided
may also indicate his willingness
costs of connection and pays
guarantee
to build the network connection
the
connection fee (it may also
on its own
be paid in installments)
THE NETWORK MANGER (DSO
/ TSO)
YES
If the connection is
technically feasible, the
Is the
DSO / TSO calculates the
The network manager set
connection
costs related to the
up a connection to its grid
accepted?
connection
NO
7
END
Italian regulatory framework on grid connection (4/4)
Total cost of a grid connection
20% of the
minimum technical
investment covered
in tariff by RAB (*)
Additional
investments in
RAB not directly
connected
(redundant) to the
Total amount to be charged to the biomethane
biomethane
producer A+C
connection
A= authorization
(*) The tariff
system does not cover any discounts applied by the
costs, that have to
C= 80% of the
distributor on the connection fee.
be charged to the
(**) The amount of the
financial guarantee is determined by the
investment has
biomethane
network operator on the basis of the
connection fee and also
to be charged to
producer (**)
includes the expenditure provided by the network operator for the
the biomethane
management of
authorizations.
(RAB = regualted asset base)
producer (*)
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