ENA launches consultation on measures to boost green gas injection into the Grid

For immediate release - Monday 18 May 2015

Energy Networks Association (ENA) has issued a consultation to gather industry views on current regulations for low-flow Biomethane sites injecting into the gas network.

ENA and members of the Biomethane Campaign Working Group believe that current regulations place a disproportionate burden on low-flow Biomethane connections and that the cost and complexity of the regime for these producers acts as a barrier to entry to the industry. The interest of both existing and future users of the network could be protected through agreements between Gas Distribution Networks (GDNs) and the Biomethane producers, as set out in the legally binding Network Entry Agreements (NEAs) and further industry agreement mechanisms.

David Smith, Chief Executive of Energy Networks Association, said "The injection of green gas, such as Biomethane, into the network can play an important role in meeting the significant challenge of decarbonising UK heat, cooking and transport.

Simplification of the current regulatory regime for low-flow Biomethane producers can contribute to continued growth in this area and support the Government’s policy targets for renewable heat and low carbon energy, whilst ensuring there is no detriment to the existing levels of consumer protection."

The consultation proposes three options regarding the regulatory regime:

Option 1:

No Change to current arrangements

Option 2:

Modified Ofgem Letter of Direction

Option 3:

The removal of requirement for Ofgem to direct low-flow Biomethane sites

Once the views on these proposals have been gathered from gas shippers, suppliers, consumer groups and Biomethane developers/producers, the findings will help Ofgem make an independent decision in relation to this issue.

ENDS

Notes to Editors

* The Energy Networks Association’s (ENA) Biomethane Campaign was established in March 2013 following an initial Roundtable discussion at ENA’s offices in London. Key stakeholders in the biomethane industry were present as well as DECC, Ofgem and other regulatory bodies. The Roundtable was convened to identify, discuss, and establish the practical solutions to barriers preventing the growth of biomethane injection in the UK gas grid.

The Biomethane Campaign is facilitated and managed by ENA. The group comprises the gas distribution network operators (GDNs) and all wider, relevant, stakeholders involved in the ‘Biomethane to Grid’ market in the UK.

* Regulations for low-flow Biomethane sites are set out in the Gas (Calculation of Thermal Energy) Regulations 1996, as amended (G(CoTE)R) and are governed under a Letter of Direction which is issued by Ofgem and requires that these relevant gas sites meet all of the legal and regulatory requirements for determination of CV and wider system integration. These sites are also known as "Directed".

* Details of the consultation and the response template are available on the ENA website here. The deadline for consultation responses is 9 July 2015.

* For further information contact:

Matthew Pringle

Press and Public Affairs Officer, Energy Networks Association

Direct Email: [email protected]

Press Team: [email protected]

T: +44 (0)207 706 5118 M: +44 (0)7792220974 W: www.energynetworks.org