Incentives for biomethane production

Biomethane, after photovoltaics, is emerging as the next field of activity for citizens in renewable energy sources. A bill promoted by the Ministry of Environment and Energy establishes incentives for the production and use of biomethane that can be distributed through the existing natural gas network and used by consumers.

The Public Gas Distribution Networks S.A. (DEDA), which develops the networks in the regions outside Attica, Thessaloniki and Thessaly, has already submitted to the Ministry of Environment and Energy the company’s proposals for the development of biomethane market. It is recalled that DEDA has already submitted, at the end of 2021, an application to RAE for the issuance of a license to distribute biomethane in low and medium pressure networks while planning the first pilot biomethane distribution projects in the prefectures of Serres and Imathia within 2022. The pilot project will test the complete product cycle, from production, infusion, distribution, to sale and use.

35 points throughout Greece

Biomethane is produced from agricultural and livestock residues, as well as the organic breakdown of municipal solid waste. A DEDA study has identified at least 35 points across Greece where there is sufficient production of raw material from agricultural and urban waste, which can support the development of small power units of up to 3 megawatts. According to information, DEDA’s proposal predetermines the market structure in a way that will ensure that the price of biomethane will be lower than the price of natural gas. The price will be guaranteed (according to the standard of energy produced by photovoltaic and other RES) for the producers, while if the market price exceeds the guaranteed price then the difference will be returned to the State – also as is done with RES.

A key advantage of the biomethane that will be produced by the small units scattered throughout Greece is that it will not be charged with the user fees of the Natural Gas Transmission System (DESFA) as the injection will be made directly into the DEDA, medium and low pressure networks. DEDA’s proposal also provides for the priority absorption of biomethane from the networks, similar to the regulation that applies to electricity produced by RES.