NRAs’ Reflections on Enabling the Injection and Access to the Wholesale Market of Biomethane
CEER’s latest report, Regulators’ Reflections on Enabling the Injection and Access to the Wholesale Market of Biomethane, provides an overview of how nine EU Member States are implementing key provisions of the Gas Decarbonisation Package relevant to biomethane.
The report contributes to the implementation of the EU’s legislative framework for renewable and low-carbon gases.
Context and Purpose
Biomethane plays an increasingly important role in Europe’s energy transition. In 2023, EU biomethane production reached 4.9 bcm (52 TWh), marking an 18% increase compared to 2022, with production capacity reaching 7 bcm/year by the end of 2024. However, the EU’s indicative target of 35 bcm/year by 2030, as set out in the REPowerEU Plan, remains a challenge.
CEER’s report analyses national approaches to network access, connection fees and cost-sharing mechanisms, tariff discounts, and trading arrangements. Drawing on case studies from nine EU Member States, it identifies regulatory challenges and best practices to promote harmonised and effective integration of biomethane into the EU’s internal gas market.
Key Findings
The report highlights that:
- Integrated market areas such as Austria, Germany, Italy, Latvia, and Portugal enable biomethane injected at the distribution level to access the wholesale market through virtual trading points (VTPs).
- Cost-sharing models are commonly applied, with producers and network operators sharing investment costs to facilitate biomethane injection.
- The application of 100% tariff discounts for biomethane injection varies across Member States. Several NRAs have granted derogations where alternative support schemes already exist.
- While Guarantees of Origin (GOs) are operational in most countries, the Union Database (UDB) is not yet fully implemented, limiting cross-border biomethane trade.
- Member States are at different stages of developing systems for Proofs of Sustainability (PoS) and the interconnection between GO registries and the UDB.
Recommendations
To ensure a well-functioning internal biomethane market, CEER encourages:
- Harmonised implementation of the Gas Decarbonisation Package across the EU.
- Transparent, predictable and cost-reflective network connection procedures.
- Continued development of GO and PoS systems, aligned with the Union Database.
- Enhanced cooperation among regulators, network operators, and policymakers to facilitate biomethane production and market integration.
