February 22, 2024. The European Biogas Association (EBA), within the framework of the GreenMeUp project, has evaluated regulations regarding grid connection cost sharing, gas quality, metering systems, and injection fees in 28 European countries analyzed to understand what it takes today to move biomethane from the plants to the gas pipelines.
Biomethane plants can connect to either a grid or operate independently. According to the EBA’s database for 2022, 75% of biomethane plants today are connected to the grid (58% to distribution and 17% to transmission grids). Multiple factors are significantly impacting the injection of biomethane into the gas grid, including enabling legislative frameworks, gas quality standards, the application of injection fees, or the negotiation of cost-sharing agreements between grid operators and biomethane producers.
Regulations with respect to enabling grid connection for biomethane plants are mostly addressed at the national level, and diverse approaches exist between countries. Additionally, there are two types of gas grids in Europe: transmission grids, managed by Transmission System Operators (TSOs), and distribution grids managed by Distribution System Operators (DSOs). The transmission grid comprises high-pressure pipelines responsible for transporting gas across extensive distances. In contrast, the distribution grid is composed of low-pressure pipelines designed to supply gas to residences, commercial establishments, and industrial facilities within a localised area.
Grid connection costs, referring to the cost of setting up injection stations and constructing gas pipelines from biomethane plants to the existing infrastructure of the gas network, are one of the most important factors influencing biomethane’s injection. The expense associated with grid connection is impacted by the project’s location, the plant’s size and capacity, and the existing network infrastructure. This often necessitates negotiation regarding cost-sharing to undertake such projects and varies among EU countries.
10 out of 28 (EU+UK) countries have grid connection costs shared between biomethane producers and grid operators. France and Germany, for instance, split the connection costs in percentages between the biomethane producer and the grid operator for constructing pipelines from the biomethane plant to the grid injection point.
In addition to the cost of constructing pipelines to the injection point, some countries also charge an injection fee, which aims to cover the installation and maintenance of metering and measurement systems, grid access charges, and costs for ensuring gas quality. This fee is applicable in 11 out of the 28 countries analyzed but these change depending on the country.
The projected growth in biomethane production offers significant potential to meet Europe’s gas demand (up to 62% by 2050 according to EBA Statistical Report 2022), while decreasing reliance on imports. Achieving this potential requires streamlining processes and regulations to facilitate smooth grid access and encourage the widespread substitution of natural gas in the energy infrastructure.
