Overview of biomethane markets and regulations ... - Green Gas Grids

The national gas grid is well established and widespread. Historically, both the
supply and transportation has been dominated by Snam, a subsidiary of ENI. The
Italian gas market has been controlled for a long time by the ENI group, however,
eight years on from gas market liberalisation, a number of companies have
emerged in competition with ENI in the import and supply of gas to large customers
and distribution companies, including Edison, Enel, Plurigas, Energia Gas, Dalmine
Energia, and Gaz de France. According to the national regulatory authority AEEG
(Autorità per L’energia elettrica e il gas), the main operator, Snam Rete Gas, owns
31,680 km of the 33,768 km of Italy’s gas transport system. The second largest
operator is the Edison Group, which runs a total of 1,414 km of pipeline, of which
374 on the national network. Edison operates both the network owned by Società
Gasdotti Italia (1,331 km), and the connector to the Rovigo LNG terminal, through
its Edison Stoccaggio subsidiary (83 km). Completing the transport network are
seven smaller operators which own small sections of the regional system. The
distribution pipeline network comprises almost 250,000 km of pipeline. The
ownership of natural gas distribution facilities remains fragmented, with about
250 companies operating in the sector (this compares, however, with over 430 in
2005). The principal operator is still ENI, which controls 22.9 % of the market (in
terms of distributed volumes).
With more than 760,000 cars and trucks running on CNG, Italy takes the lead
among other European countries regarding the number of natural gas vehicles.
According to NGVA, roughly 850 filling stations, most of them public, offer natural
gas as a vehicle fuel.
Technical standards for biomethane and natural gas
In March 2011, Italy introduced Decree No 28/2011 which allows biomethane
injection into the gas grid. This law stipulates that the development of natural gas
infrastructures is a national priority and the codification of biomethane to natural
gas grid injection is also a priority of the Italian Authorities for Energy. The Decree
allows biomethane to enter the grid, if it meets the necessary requirements. A
related quality standard hasn’t been established so far, but is expected in near
future.
Italy implemented the Directive 98/30/EC with the Legislative Decree No 164/2000
which provides that grid access to the existing pipeline system can not be refused
for any reason for natural gas produced within Italy, in Italy waters or on the Italian
continental shelf. Moreover, the act stipulates that in case of lack of connection
capacity, the access can not be refused. Moreover, with Resolution No. 108/06, the
Authority for Electricity and Gas has approved its network code, the CRDG (Codice
di Rete per il servizio di distribuzione gas). This particular act regulated the
relationship between the companies that manage the natural gas distribution and
the sales companies. Adoption of this instrument obliged the distribution companies
to offer neutrally and non-discriminatory distribution services to companies and
sales to wholesalers.
The grid operator is obliged to ensure grid connection verifying the economic
feasability and conformance to the technical standards. The investment costs for
grid connection are fully to be borne by the grid connection applicant as the Italian
regulations don’t specify any cost split.
Support schemes
Since 2009, when Italy introduced new feed-in tariffs for renewable energies, the
country experienced accelerated development of the biogas market. The tariffs are
guaranteed for 15 years, stipulating electricity prices of up to 28 €cent / kWh for
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