(Author Lorenzo Maggioni)
On 26th October 2022, a new Italian Biomethane Decree (Ministerial Decree 15 September 2022) has been officially published. It establishes incentives mechanisms, allocating 1,73 billion EUR partially funds from the RRF, and combines assets and reforms for additional biomethane production (2.5 bcm/y by end of June 2026).
Moreover, the incentive tariffs have an estimated budget of 2.8 billion over a 15-year operational period.
The new measures aim at promoting the investments in new plants or reconverted plants (from biogas to biomethane) and encourages the development of this renewable gas and its injection into the national gas grid for use also in sectors other than transport (e.g heating for industrial, tertiary and residential sectors).
The introduction of the new scheme provides innovations and extensive modification on multiple lines and new specific incentives as Feed In tariff and Premium Tariff.
To require the support, the decree specifies a mandatory deadline (30 June 2026) to complete the work associated to the new construction or conversion plant.
The capital incentive for plant type A (agricultural) and B (organic waste) must comply with values indicated in the following table:
Table 2: Italian Decree 15 September 2022 – subsidies to cover investment costs
In addition, the decree set out on a pay-as-bid principle, the reference tariff (€/MW h) as indicated in the following table for plant type A (agricultural) and B (organic waste), and a premium incentive tariffs accounting of the evolving gas prices beside the aforementioned Guarantee of Origin (GoO).
Italian Decree 15 September 2022 – subsidies for the biomethane production
Methods of access to incentives: access is granted following the award of public competitive procedures in which production capacity quotas are made available periodically.
Available quotas, timing and methods of conducting competitive procedures: the production capacity quotas made available annually expressed in standard cubic meters / hour of biomethane, are identified as follows:
Table 4: Italian Decree 15 September 2022 – annual quotas for the production of biomethane
Another important news for the Italian biomethane sector is that, the previous biomethane decree (the 2 march 2018 Decree) has been extended by one year (from 31-12-2022 to 31-12-2023) by the 5 August 2022 Decree.
So, the two decrees (2 March 2018 Decree and 15 September 2022 Decree) will co-exist in the 2023.