Premium tariff (decreto biometano)
Updated: 07.02.2019
Author: Jasmin Schwarz
The schemes “decreto biometano” provides for:
A simplified sale to GSE: Producers of advanced biomethane (Annex 3, DM 02.03.2018) destined to transport can sell the produced biomethane to GSE (“ritiro”) through a simplified procedure instead of selling it on the free market. Hereby, they can choose between selling the whole amount of produced biofuel or only a certain quantity to the gse. (Art. 6.1 DM 02.03.2018). The price GSE pays is defined as monthly weighted average price for natural gas on the market reduced by 5%. (Art. 6.1, a, DM 02.03.2018).
Premium: The scheme provides for a premium for advanced biomethane and biofuels other than biomethane fed into the grid for transport. ,Producer of advanced biomethane and producers of advanced biofuel other than biomethane receive the set amount of €375 for every consumption release certificate “CIC” (“Certificato Immissione in Consume”), that they would be eintitled to. (Art. 6.1, a, Art. 7.1 DM 02.03.2018).
Eligible technologies
For Advanced biomethane (Annex 3, DM 02.03.2018) both the simplified sale to GSE as well as the Premium are possible and combineable.
For biofuels other than biomethane only the Premium is eligible. (Art. 7, DM 02.03.2018).
| Biofuels | For the Premium:
- New Advanced Bio-methane production plants entering into operation in the period from 20.03.2018 to 31.12.2022. (Art. 6, DM 02.03.2018)
- New Plants producing advanced biofuels other than bio-methane entering into operation by 31.12.2022. (Art. 8, DM 02.03.2018)
- Existing biogas production plants converted to produce advanced bio-methane in the period from 20.03.2018 to 21.12.2012.
Biomethane, bioethanol and biodiesel are only eligible if they produce advanced biofuels from materials such as such as agricultural and industrial wastes residues, ligno-cellulosic materials, cellulosic materials and algae defined in Annex 3, DM 02.03.2018.
For the simplified sale to GSE:
- Only producers of advanced biomethane are entitled. Advanced biomethane is generated from specific raw materials defined in Annex 3, DM 02.03.2018.
- Bio-methane includes the fuel produced by the processes of methanation of the hydrogen obtained from renewable sources. (Art. 1.1 DM 02.03.2018).
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Amount
| Biofuels | Simplified sale to GSE: The price GSE pays is defined as monthly weighted average price for natural gas on the market reduced by 5%. (Art. 6.1, a, DM 02.03.2018).
Premium: Producers receive the set amount of €375 for every CIC, that they would be entitled to. (Art. 6.1, a, Art. 7.1 DM 02.03.2018). |
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Addressees
The obliged subjects are all subjects that need to fulfill the biofuel-quota. (Art. 6.1, c, DM 02.03.2018)
The entitled subjects are producers of advanced biomethane (Premium, sale to GSE) and producers of biofuels other than biomethane (Premium). ( Art. 6, Art. 7, DM 02.03.2018)
Procedure
Process flow | Procedure for sale to GSE:
Producers who want to sell to the GSE from the start of operation on need to procede in the following way:
- request a first qualification (“qualifica a progetto”)
- sign the convention (“convenzione di ritiro fisico”)
- communicate the date of the start of operation
- request a final qualification (“qualifica in esercizio”).
Otherwise thye can procede in the following way:
- request qualification (“qualifica in esercizio”)
- sign the convention (“convenzione di ritiro fisico”)
Further information under Procedure Applicative (Link)
Procedure for Premium:
Plant owners must send their request to the GSE within one year of the start of operations. Plant owners must fulfil some criteria concerning location, authorisation, production capacity and technology used. The GSE evaluates the demand and decides within 120 days.
If the producer is qualified, he must hand in supply agreements between the producer and the obliged entity and a monthly biomethane production report. (Art. 9, DM 02.03.2018) |
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Competent authority | GSE |
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Eligibility period
Premium: The incentive lasts for maximum 10 years. After 10 years, producers are entitled to receive the CIC instead of the set amount of € 375 that they must sell autonomously on the market. (Art.6.7, Art. 7.5 DM 02.03.2018)
Italy
