Subsidy II (Biomethane Market Development Support)
Updated: 17.01.2019
Author: Lilian Pungas
The purpose of the subsidy scheme is to contribute to boosting the consumption and production of biomethane and to support activities that contribute to the goal of 10% of energy from renewable sources in transport fuels by 2020. Support will be given to biomethane producers. The scheme is available from January 2018.
Eligible technologies
The following activities will be supported under this scheme:
1) cost of production of certified biomethane delivered to final consumer as transport fuel per megawatt hour;
2) cost of production of certified biomethane delivered to the final user in the gas system referred to in the Natural Gas Act, per megawatt-hour (§6(1) Act on Biomethane Market Development Support).
| Biofuels | Eligible (§5 Act on Biomethane Market Development Support). |
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Amount
For biomethane delivered to the final consumer as transport fuel, the amount of the subsidy is €100 per megawatt-hour, from which the average market price of natural gas of the current month will be deducted (§8(1) Act on Biomethane Market Development Support). For biomethane delivered to the final consumer in the gas system, the amount of the subsidy is €93 per megawatt-hour, from which the average market price of natural gas of the current month will be deducted (§8(2) Act on Biomethane Market Development Support).
Addressees
Biomethane producers whose installation’s installed capacity does not exceed 50 000 tonnes per year. A legal person from the European Economic Area or the Swiss Confederation may also apply for support under this measure, if the law of the country of his residence allows a legal entity in Estonia to participate in a similar scheme in that country (§9(1-2) Act on Biomethane Market Development Support).
Procedure
Process flow | - After opening of the application round and before filing the application, the applicant will register himself as an applicant on the website of the Ministry or System Administrator of the gas system. The registrations will be reviewed in the order they were received (§10(1); (3) Act on Biomethane Market Development Support).
- Information about the receipt of payment applications and the funding budget is provided on the website of the Ministry or System Administrator at least 30 calendar days before the opening of the call for applications (§13(4) Act on Biomethane Market Development Support).
- Payment applications are processed in the order in which they are received (§15(1) Act on Biomethane Market Development Support). The Ministry or System Administrator will make a payment to the beneficiary’s account by the 21st day of the month immediately following the submission of the application for payment (§18(2) Act on Biomethane Market Development Support).
Payment applications can be submitted on a rolling basis until 30 November 2020 or until the end of budgetary resources (§13(2) Act on Biomethane Market Development Support). |
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Competent authority | Ministry of Economic Affairs and Communications (MKM); natural gas TSO (Elering) |
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Distribution of costs
| State | The costs are borne by the state. |
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Estonia
