Overview of biomethane markets and regulations ... - Green Gas Grids
Overview of biomethane markets and regulations ... - Green Gas Grids
Overview of biomethane markets and regulations ... - Green Gas Grids
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electricity <strong>and</strong> gas system <strong>and</strong> the rules for operating them. Biomethane can enter<br />
the distribution grid if it meets the technical requirements. There are no restrictions<br />
on the feedstock the <strong>biomethane</strong> is derived from, but the producer is obliged to<br />
prove that the gas does not cause any hygienic risks for the distribution network.<br />
Augmentation with LPG or propane as well as the injection <strong>of</strong> upgraded biogas not<br />
fully in line with the specifications is allowed in principle as long as the resulting<br />
quality <strong>of</strong> the gas flow conforms to the requirements.<br />
Even though no <strong>biomethane</strong> plant currently feeds the grid, the Slovak DSO<br />
SPP - distribúcia a.s. is prepared for <strong>biomethane</strong> injection. The relevant <strong>regulations</strong><br />
have been implemented <strong>and</strong> the technical st<strong>and</strong>ards are in place. The requirements<br />
<strong>and</strong> conditions for connection <strong>of</strong> <strong>biomethane</strong> facilities are published in Slovak <strong>and</strong><br />
English on the company’s webpage.<br />
Support schemes<br />
To comply with the ambitious targets on renewable energy, <strong>and</strong> to manage duties<br />
under the respective Directives <strong>of</strong> the European Parliament <strong>and</strong> Council, the Slovak<br />
Parliament adopted the Act No. 309/2009 Coll. on the Promotion <strong>of</strong> Renewable<br />
Energy Sources <strong>and</strong> High Efficiency Cogeneration Production ("RES Promotion Act"),<br />
which came into effect as from 1 st <strong>of</strong> September 2009. In 2010 <strong>and</strong> 2011 the RES<br />
Promotion Act was amended, the rules that support electricity production were<br />
revised, <strong>and</strong> new rules supporting the high-efficiency cogeneration <strong>of</strong> electricity<br />
were introduced. The act now regulates the methods <strong>and</strong> requirements <strong>of</strong> the<br />
promotion <strong>of</strong> electricity from renewable energy sources, in particular<br />
n Priority connection <strong>of</strong> such energy facilities to the<br />
regional distribution system,<br />
n Priority access to the grid, transmission, distribution <strong>and</strong><br />
supply <strong>of</strong> electricity;<br />
n Off-take <strong>of</strong> electricity at the price for electricity to cover<br />
grid losses,<br />
n Feed-in tariffs <strong>and</strong><br />
n Transfer <strong>of</strong> the liability for deviations (i.e. the difference<br />
between the production <strong>of</strong> electricity <strong>and</strong> dem<strong>and</strong>) to the<br />
regional distribution system operator.<br />
The amended Act also redefines rights <strong>and</strong> obligation for <strong>biomethane</strong> producers <strong>and</strong><br />
distribution system operators, such as priority access for the grid connection,<br />
release <strong>of</strong> certificate for <strong>biomethane</strong> etc.<br />
The operator <strong>of</strong> a biogas fueled CHP is entitled to receive feed-in tariffs <strong>of</strong> 9.308 to<br />
13.633 €cent / kWh depending on the source <strong>of</strong> biogas (2012 figures). Even though<br />
the Slovak NREAP announces legislative measures for a compulsory purchase <strong>of</strong><br />
<strong>biomethane</strong> for the case that <strong>biomethane</strong> integration needs to be strengthened, a<br />
gas feed in tariff has not prevailed so far. Thus, the biogas to electricity feed-in<br />
tariffs are valid for <strong>biomethane</strong> fueled CHP as well. In order to implement the<br />
objectives <strong>of</strong> the RES Promotion Act effectively, the Slovak Government set<br />
requirements on efficient use <strong>of</strong> renewable energy sources. High efficiency<br />
cogeneration resulting in primary energy savings compared to separate heat <strong>and</strong><br />
electricity production is encouraged, while cogeneration with a low heat utilisation<br />
rate results in reduction <strong>of</strong> feed-in tariffs.<br />
Besides the feed-in tariff scheme, direct financial support for investment is also<br />
<strong>of</strong>fered, e.g. investment subsidy through the Structural Funds from Operational<br />
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