italian biomethane roadmap

ITALIAN BIOMETHANE
ROADMAP
October 2014
1
AUTHOR: LORENZO MAGGIONI
CONTACTS: CIB-Consorzio Italiano Biogas e Gassificazione
c/o Parco Tecnologico Padano
Via Einstein
Cascina Codazza, 26900 (LO)
EMAIL: [email protected]
Tel.: +39(0)3714662631
Fax.: +39(0)3714662401
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CONTENTS
TABLE OF CONTENTS .......................................................................................................................... 3
1.
INTRODUCTION ......................................................................................................................... 4
2.
THE POTENTIAL OF THE ITALIAN “BIOGASDONERIGHT” (BIOGAS FATTO BENE)........................... 4
2.1
ITALIAN BIOGAS AND CIB ..................................................................................................... 4
2.2
BIOGAS: A HARD-WORKING ITALIAN INDUSTRY .................................................................... 5
2.3
LODE OF THE ITLALIAN BIOGAS: THE PRODUCTION POTENTIAL ............................................ 7
2.4 “BIOGASDONERIGHT” (BIOGAS FATTO BENE): THE NEED TO COMBINE COMPETITIVINESS
AND SUSTAINIBILITY IN AGRICULTURAL BUSINESSES ....................................................................10
2.5
3.
NATURAL GAS MARKET AND INFRASTRUCTURE ....................................................................... 12
3.1
4.
BIOMETHANE AND THE DEVELOPMENT OF METHANE TRACTION IN ITALY ..........................11
A CHANCE FOR NATURAL GAS-BIOMETHANE.......................................................................15
BIOGAS INCENTIVIZING FRAMEWORK ...................................................................................... 15
4.1
REDUCTION OF INCENTIVES ................................................................................................16
4.2
INCENTIVIZING FEES ............................................................................................................17
5.
BIOMETHANE INCENTIVIZING FRAMEWORK ............................................................................ 18
6.
BIOGAS DEVELOPMENT PLANT BY 2020 ................................................................................... 23
6.1
DEVELOPMENT PLAN ..........................................................................................................23
6.2
GOALS AND SPECIFIC TOOLS................................................................................................27
6.2.1 COMPLETION OF BIOMETHANE REGULATIONS ....................................................................28
6.2.2 DEVELOPING NEW PRODUCTION .........................................................................................30
6.2.3 VOLUNTARY RENOUNCEMENT OF THE ALL-INCLUSIVE TARIFF AND PROPORTIONAL CREATION
OF A NEW ANNUAL ALLOTMENT TO DEVELOP NEW COMBINED ELECTRICITY/BIOMETHANE
PRODUCTION CAPABILITY ............................................................................................................31
6.2.4 PROMOTION OF PLANT MANAGEMENT FLEXIBILIZATION.....................................................32
6.2.5 DEVELOPMENT OF ENERGEY EFFICIENCY .............................................................................32
7.
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URGENT ACTION PLAN TO DEVELOP ITALIAN BIOGAS/BIOMETHANE ........................................ 33
1. INTRODUCTION
This document, which is part of the GGG project, describes the Italian biogas and
biomethane industry. It depicts the number of biogas plants in Italy, direct and indirect
advantages of the existing plants, the applicable legislation and the national incentivizing
plan related to biogas and biomethane. Further, a brief analysis of the current national
situation outlines the natural gas employment. In conclusion, it foresees the scenario that is
likely to take place by 2020 in the field of biogas and biomethane with a closer look at goals
and tools to use to achieve them, as well as obstacles to overcome.
2. THE POTENTIAL OF THE ITALIAN “BIOGASDONERIGHT” (BIOGAS FATTO
BENE)
2.1 ITALIAN BIOGAS AND CIB
The last three-year period has represented a crucial turning point for the development of
biogas and biomethane topping more than 1000 plants and installed power of about one
electrical TW. According to the estimate released by TERNA concerning 2013, the overall
sector of the agricultural biogas counts some 1200 plants and a total installed electricity of
about 900MWel - 85% is distributed in the Northern regions and the remaining 15% is
distributed in Central and South Italy. These figures rank Italy as the second European
producer after Germany, and as the third worldwide after China. The investments in the last
four years have totalled 3,5-4 billion Euro counting on an increasing 12.000 employees
working in this industry.
Such an evolution has been unquestionably possible because of the all-inclusive fee
provided by the law number 244, year 2007. Nonetheless field operators rose to the
occasion developing both professionalism and plants. In particular within the CIB their
efforts have aimed at fully integrating with the companies and become a fundamental part
of the agronomic process of the farm business.
Further, the last three years have also increased significantly the institutional role of CIB,
which is now benchmark in the biogas field. Its representativeness is proven by the figures
here below:
[Key: A – Plants B – Electric power installed, Operating Plants, Data not available, Estimate
Data not available. Table RIGHT: Total number members]
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To date, CIB represents 475 farm businesses with biogas plants, i.e. almost 50% of the plants
installed in Italy and adds up an overall power of 355MWel. As a whole CIB represents 583
leading farm businesses in the agricultural biogas production chain: from the agricultural
company to the related industrial and productive industry.
For what regards biomethane in Italy up to early July 2013 there were two biomethane
plants, which were not connected to the natural gas grid. The first, located in San Giovanni
in Persiceto (near Bologna, in the Region Emilia Romagna), is just a demonstration plant. It is
connected to a biogas plant (1 MW electrical power, in operation), but as it is not used for a
continuous production of biomethane, it is activated only when there are visitors. The
second is connected to the landfill for the urban waste of Rome. Malagrotta is currently the
largest landfill operating in Europe: more than 1.5 million tons of urban waste/year.
For the collection of municipal waste the municipality of Rome began to fuel some vehicles
with biomethane in January 1995. The production of biogas from the landfill is nowadays
enough to generate electricity and biomethane to supply about 34 public and private
vehicles. In 1998, the production of raw biogas was about 900-1000 Nm3/h, the production
of biomethane about 400 Nm3/h.
2.2 BIOGAS: A HARD-WORKING ITALIAN INDUSTRY
The contribution of the biogas industry to the Italian labour market exceeds all the one of
other renewable sources (cf. following chart)
(GSE data, CIB elaboration)
Permanent personnel in the field of sustainable energy
Installed
power
Estimate
Producibility
producibility (GWh)
hours
Permanent
personnel
Permanent
Permanent
personnel vs. personnel
installed
Vs.
power
in Producibility
MWel
in GWh
Photovoltaic
16.420
1.250
20.525
12.300
0,7
0,6
Wind
8.119
1.400
11.367
2.200
0,3
0,2
Hydroelectric
18.232
4.000
72.928
10.500
0,6
0,1
Biogas(1)
894
8.000
7.148
10.000
11,2
1,4
Solid
Biomass
591
8.000
4.728
3.608
6,1
0,8
Bioliquids
1.027
8.000
8.214
6.400
6,2
0,8
(1) Deriving from agricultural activity
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Similarly, the comparison between the 2012 temporary personnel employed for the
realization of new plants and the 2012 installed power prove biogas to be the technology
that generates more jobs than other renewable sources (cf. following chart).
Temporary personnel for the realization of new plants
Temporary
personnel 2012
Installed power t.p./i. p. in MWel
2012
Photovoltaic
60.000
3.647
16
Wind
23.000
1.183
19
Hydroelectric
5.200
140
37
Biogas
36.000
506
71
Solid Biomass
8.800
130
68
Bioliquids
4.800
264
18
(Biogas: from farming and forestry activities)
The above mentioned trend regards also other applications: in Marghera efforts aim at
deriving from vegetable oil and fat about 2% of the Italian fuel demand. The bio-refinery is
now fuelled by palm-oil and engages 100 employees of the old refinery. To produce the
same quantity of fuel, 350-400 small bio-refineries (fuelled by biomethane) and some 4500
employees would be needed over the territory: 45 times more and a fully Italian
employment as the bio-refinery of the biomethane proceeds as an industry (from
biomass/by-product to biomethane) that is completely national.
Here below we make few examples that show how biogas can offer innumerable permanent
job opportunities due to the following factors:
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
“Tiene aperte le stalle”/”Keeps the business going” strengthening the
competitive and financial standing of the existing farms and contributes to
maintaining their employment notwithstanding the difficult crisis all the
market such as pig farming, cattle for meat, non PDO milk, citrus fruits, etc.
is experiencing: namely it consolidates the capability to manage the
unpredictability of the markets and increases competitiveness creating
more stable jobs compared to other sustainable sources.

It creates a wide-spread satellite network with many Italian companies
characterized by a strong bent to export in different areas:
◦
Agricultural engineering
◦
Seeds companies
◦
Agricultural entrepreneurs
◦
Biogas plant industry
◦
Water treatment industry
◦
Methane gas component industry
◦
Automotive industry
2.3 LODE OF THE ITLALIAN BIOGAS: THE PRODUCTI ON POTENTIAL
The Consorzio Italiano Biogas has estimated that the production potential of 8 billion Nm3 of
equivalent biomethane to be achieved by 2030 using 400.000 ha land by virtue of a large
use of so called integrative biomass, i.e. biomass that does not produce income (rather a
cost) for farmers. This means:
a) Second harvest crops, in precession or succession to feed or food crops
b) Manure
c) Agricultural by-products
d) Agro-industrial by-products
e) Biomass deriving from bio-refineries
f)
Multipurpose crops, or if otherwise not possible, no food crops on land that is not
easily1 usable for feed purposes.
To reach this production goal it is necessary to consolidate a land efficiency2 of 100 ha used
agricultural land/MWel, i.e. 45 ha first harvest for each million of Nm3 biomethane/year.
1
So called “marginal” land: CIB think that there is no marginal land, rather land that produces
lower income than its cost due to its peculiar fertility or water resources.
2
7
First harvest UAL ha / MWel installed
Potential of “Biogasdoneright” (biogas fatto bene)
2010
2013
2015
2020
2030
Biogas From Agricultural
Resources
First
harvest
Used
Agricultural Land (ha)
85.000
200.000
280.000
350.000
400000
140
308
115
253
80
176
60
132
45
100
Bio-CH4
0,6
1,7
3,5
5,8
8,0
equivalent Mwel
Biogas from urban wet
waste, landfill and waste
276
791
1591
2652
4000
Billion Nm3
equivalent
Bio-CH4
0,2
0,3
0,4
0,7
1,0
equivalent Mwel
Total “Biogasdoneright”
(biogas fatto
bene)
potential
Billion Nm3 Bio-CH4
equivalent
100
125
200
300
450
0,8
2,0
3,9
6,5
9,0
equivalent MWel
376
916
1.791
2.952
4450
Land efficiency
ha/mln Nm3 Bio-CH4 eq
ha/Mwel
Biogas from Agricultural
Resources
Billion
Nm3
equivalent
The results obtained by the Italian biogas in the last years unquestionably confirm that these
goals are realistic and likely to be achieved both for utilization of manure and by-products,
as proved by the study made by Lombardy Region and Milan Politecnico
(http://www.agricoltura.regione.lombardia.it/shared/ccurl/708/163/1713_ecobiogas_eboo
k_def.pdf )(following chart), both for the reduction of the hectare number of first harvest
UAL used for MWel
"Mega-digester" average feeding
5%
Lombardy Region
20%
282 MW
49%
Manure
Mais / summer cereals
26%
By-products
Triticale / w inter cereals
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[Key to above table: Megadigester average feeding: manure, summer cereals/corn, Winter
cereals/Triticale, By-products]
Because of the great adaptability to the agro-ecological conditions of agricultural businesses
and the possibility that the biogas technology has to integrate into any size of agricultural
business, biogas is able to realize a land efficiency which is greater than other bio-energies
and draws closer to the intensity of the land use of the photovoltaic energy in terms of
comparable energy (methane vs. hydrogen).
Land efficiency
x 45 ha
+ P2G
x 45 MWhto
ha
/ha
Biodiesel from Soya **
19,4
11
18
Biodiesel from Colza **
14,2
8
25
Biodiesel palm-oil
8,1
4
43
Ethanol from Arundo donax *
5,8
3
60
“Biogasdoneright” (biogas fatto bene) 115 ha/1 Mil Nm3 Bio-CH4
4,1
2
84
“Biogasdoneright” (biogas fatto bene) 80 ha/1 Mil Nm3 Bio-CH4
2,9
2
121
“Biogasdoneright” (biogas fatto bene) 45 ha/1 Mil Nm3 Bio-CH4
1,8
1
194
“Biogasdoneright” (biogas fatto bene) 45 ha/Mln CH4+ P2G/1 Mil Nm3
Bio- CH4 ***
1,0
349
FV (1400 hour/year)
0,6
560
FV (1400 hour/year transformed to hydrogen )
0,8
448
* co-products included (lignin)
** co-product (protein)
*** biomethane plant with methanation CO2 biogas with grid hydrogen
In other words, with 1 hectare of biomethane land you can drive 11 times more km
compared to 1 hectare allotted to soya for the production of biodiesel. The produced
biomethane boosts CO2 in “power to gas” systems and is able to achieve land efficiency
comparable to the best state-of-the-art photovoltaic.
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2.4 “BIOGASDONERIGHT” (BIOGAS FATTO BENE): THE NEED TO COMBINE
COMPETITIVINESS AND SUSTAINIBILITY IN AGRICULTURAL BUSINESSES
The reasons why a biogas plant is so land efficient are due to the intrinsic peculiarities of its
technology, which makes it definitely different than any other bioenergy:
Multi-feedstock: biogas plants are able to use equally any kind of organic-based
matrix available on the territory and adapt to any kind of agro-ecology; as such biogas has a
grounded potential to reduce production costs;
Efficiency in the conversion of organic substance: with developed biological
processes that operate both at room temperature and at 40-50°C, and that are able to
convert 70-80% of organic carbon available in biogas, whereas the remaining residual in the
digestate together with all the nutrients injected into the digester restore the organic
fertility and the need of fertilizer of agricultural land;
It doesn’t require significant economies of scale: in fact, it is possible to built an
efficient biogas refinery from 500 to 1.000.000 litres of equivalent gasoline a year.
For these reasons biogas can be produced everywhere from Sicily to the Lombardy plain, not
modifying the existing farming organization (with e.g. mono-cultivations for the bio-refinery)
and adapting instead to the size and organization of the agricultural business. In this way a
biogas plant that is inserted correctly in an agricultural business not only doesn’t compete
with the dietary activities and traditional foraging, but it contributes to re-launch the
operative capability of agricultural businesses (it keeps the business going, improves the
rotations, increases the land fertility and the intensity of the machinery use etc) combining
sustainability and competitiveness.
This is the basic concept that Consorzio Italiano Biogas has defined as #”Biogasdoneright”
(biogas fatto bene), a technological platform that if adequately integrated with an
agricultural business allows to:
-
Improves financial flows and credit of agricultural businesses
-
Decreases production costs of the technical means bound to the oil pricing trends
a.
Digestate instead of chemical oil-derived fertilizers, biomethane instead of fossil
fuels in agrarian engineering
b.
Reduces compliance costs to environmental regulations related to greening and the
use of manure
-
Makes sustainable practices advantageous
c.
Increases cultivation rotations, with second harvest or foraging crops as an
alternative to mono-cultivations of corn or wheat
d.
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Enforces manure use
e.
Doubles harvest and use of conservative agricultural techniques
f.
Enforces digestate (cf. Implementing Regulation EU n. 354/2014 that, in the field of
the fertilizers introduces biogas digestate as a product allowed in biological agriculture)
Up to now, in Italy, biogas plants have been developed almost exclusively by means of the
realization of continuously operating plants between 300-1.000 KWe, with a relatively low
empowering of cogenerated thermic energy because of the rural location.
The new competitive evolution of production costs of renewable electrical sources,
considering the need to implement alternative sources to traditional fossil to employ for
means of transport, compels biogas to find new markets by enforcing its peculiarity as
opposed to wind and solar sources, namely that it is a carbon-based source and as such it is
predictable and opens a variety of market opportunities:
-
traction;
distributive generation, where, as predictable source, it is able to reduce local needs
to adaptation because of its capability to penetrate into the electric energy distribution grid;
-
providing green chemistry with raw material and semi-finished products.
2.5 BIOMETHANE AND THE DEVELOPMENT OF METHANE TRACTION IN ITALY
Methane is an alternative ecological fuel because of some unquestionable factors:
-
It grants a lower emissions of particulate, nitrogen oxide and other polluting agents;
-
It allows to reduce 20% CO2 emissions compared to other fossil fuels;
-
With biomethane it is capable of achieving efficiency in reducing emissions as much as
solar and wind produced energy.
Therefore, biomethane can be considered a land and carbon efficient advanced biofuel.
A realistic development plan of methane/biomethane within 2020 should include:
-
Doubling service stations to 2000, thanks to the developing biogas incentives in
Southern and Central regions;
-
Doubling current means of transport consumption of CNG methane (preferably GNL) up
to about 2 billions Nm3 by 2020;
-
Increasing biomethane consumption up to 35% of the total consumption, about
700.000.000 Nm3/year.
Besides a fast enforcement of the biomethane decree dated December 2013, it is necessary
that the Government schedules annual targets to reach a biofuel utilisation of 10% of the
total consumption of transport fuel by 2020.
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[Key to above table: up left: Criticality: - regulations to implement decree – run in bureaucracy, - clear
CIC marke, - project bankability – development of marketing strategies Observations: - development
green field , - agricultural sector, - more projects than Germany due to co-existence
up right: Development. Criticality: - increase mandatory use of biofuels, - development of NGV cars –
methane taxation, Observations: - development of co-existence plants – development of biomethane
from urban wet waste]
3. NATURAL GAS MARKET AND INFRA STRUCTURE
Our country has a long tradition in the field of methane-fuelled vehicles and is still
worldwide and European leader in the technology used for this kind of means of transport.
At the end of 2013 the Italian distribution topped 1000 service stations, out of which 14 on
highways and some 20 public means of transport companies. Further, more than 950 million
cubic metres are consumed for traction between service stations and company vehicles.
Compliant with the AEEG (Electric and Gas Energy Authority) regulations biomethane can be
compatible with natural gas, which is already distributed in-country in the gas pipelines and
secondary grids. Thus, it can be used by all the 790.000 vehicles, which are already fuelled
with natural gas.
It will be also possible to draw upon cylinder or tanker trucks. This kind of transport is
habitual in Italy and useful to provide many different Consumers (civil, industrial, traction)
with natural gas, which are not served by the pipelines grid, or are experiencing an
emergency or grid maintenance works.
Italy has a long history with methane-fuelled trucks and can claim leadership with about
800000 methane vehicles and the related technology developed at national level. In 2013
the service stations counted more than 1000 units out of which 14 on highways.
The current consumption of methane is 950 million cubic metres and it is mainly conveyed
through gas pipelines. To reach consumers that aren’t serviced with methane and
biomethane by the gas grid, cylinder and tanker trucks represent valuable means of
transport and supply.
A brief summary will outline here below the characteristics and organization of the market
and the infrastructures dedicated to the Italian natural gas.
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The Italian gas industry is structured in three main phases:
•
Supply;
•
Transport (including activities related to storage and dispatching, transmission and
distribution);
•
Marketing.
Supply of natural gas
Production means the extraction of gas from the underground. It is a free activity. The main
operator is Eni SpA (90.04%).
Import: the main importers are: Eni group (64.1%), Enel (14.6%), Edison (9.5%). The gas
comes from abroad into the national grid through pathways such as Russia, Holland and
Algeria to an LNG receiving terminal located in Panigaglia (La Spezia).
Transport
Storage: It is a regulated activity (granting MAP) and the main operator is Stogit SpA (Eni
group), 96.6%. The Authority sets the rate.
Dispatching: Refers to the equilibrium constant and real-time between supply and demand,
and is strictly related to the transport carried out with remote control functions that act on
the inlet-pressure of the gas from natural deposits or from storage, also acting on the gas
flows in certain parts of the network.
Transport: this phase includes the activity of conveying gas, via pipeline or ship transport of
liquefied natural gas that is kept liquid at low temperature (LNG).
Distribution: is the transport of gas through pipeline networks to local facilities for
customers. It is a regulated activity (local authority). In 2004 there were about 550
distribution companies, nowadays there are 240 (the main ones Italgas SpA -Eni group-, and
Enel).
Marketing
Sale: It is the business of selling to end users of gas purchased from wholesalers or
imported. In Italy this is a free activity. In 2010, there were about 230 companies, including
Eni Gas & Power (Eni group) and Enel Gas (Enel). The price is free, however, the “Autorità
per l’Energia Elettrica ed il Gas – AEEG” (Electricity and Gas Authority) has defined the
economic conditions.
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Natural gas grid in Italy – October 2008
Gas grid infrastructure data
The transport network is divided into two: a "primary" (or dorsal) on the transport of gas
directly from production or import, and a "secondary" covering all pipelines (adductors
secondary) that connect the primary network and reach centres of consumption. The main
Italian pipeline has a length of approximately 34,000 km and spreads over the national
territory (excluding Sardinia). The network of Snam represents 93,8% of the national
primary network. Other operators have developed local networks, particularly in the
Adriatic regions (Marche, Abruzzo and Molise).
According to the resolution nr. 120/01 “Definizione di criteri per la determinazione delle
tariffe per il trasporto e dispacciamento del gas naturale e per l’utilizzo dei terminali di Gnl e
della prenotazione di capacità” (Resolution No. 120/01 "Development of criteria for the
determination of tariffs for the transportation and regasification of natural gas and the use
14
of LNG terminals and the booking of capacity") the distribution network of pipelines was
divided into two parts:
-
the National Gas Pipeline Network, for a total of 9.268 km,
and the regional transportation network for the remaining 24.500 km.
The national network consists of pipelines, compressor stations connected to the pipelines.
The regional transportation network consists of the remaining part of the carrier pipelines
not included in the National Gas Pipeline Network and the plants connected to it. The main
function is to move and distribute natural gas in defined territorial areas, typically on a
regional scale. The transport service should be understood as an integrated service from the
above mentioned pathways of entry into the national network to the delivery locations of
the regional network.
The distribution is done by about 5.800 booths; almost 210.000 final reduction groups;
almost 250.000 km networks (including 1.350 km non-operating), 41% on average pressure
and 58% in low pressure. The networks are located mainly the North (148,500 km against
56,500 km in Central Italy and 43,700 km Islands and South Italy). The networks, on average,
belong 75% to the same distributors and 5% to the municipalities. The ownership of the
networks, which can be the distributor of Municipality or other organizations (for this
reason the sum of the percentages may not equal 100), however, varies quite significantly
between the different regions.
3.1 A CHANCE FOR NATURAL GAS-BIOMETHANE
“Biomethane can launch a new Italian production chain that can significantly contribute to
maintain benchmark technology related to components and methane-driven vehicles. In
fact, Italy represents 77% of methane driven vehicles in Europe. The use of biomethane for
transport mixed with conventional ( or fossil) fuels can contribute to reduce emissions of
CO2 up to 40% compared to gasoline driven vehicles. Taken as pure biomethane it can
reduce it up to 32 times.
4. BIOGAS INCENTIVIZING FRAMEWORK
On 6th July 2012 the Ministry of Economical Development, together with the Ministry of
Environment and Land&Sea Safeguard and the Ministry of Agriculture, Food and Forestry
implemented the decree that disciplines the incentives of renewable energy productions,
other than the photovoltaic one. The Decree eventually entered into force on 11th July 2012,
and redefined substantially the incentive scheme of the renewable energy production. The
decree enforces the general scope and principles that were previously provided by the
legislative decree dated 3 March 2011, nr. 28 (legislative decree n. 28/2011), that was
enforcing European Directives concerning the promotion of renewable sources and now
effective to achieve the mentioned goals by 2020. In fact, the principles set by the legislative
decree from which derives the new ministerial decree aims at reorganizing and empowering
incentives to promote the energy production from renewable sources and energy efficiency
that could reach the share of energy from renewable sources of the total gross consumption
of energy by 2020 (i.e. 17%). Moreover, the legislative decree 28/2011 determined that the
incentivizing criteria and related tools were to promote efficiency, simplification and
stability of the incentivizing system on the long run, besides the reductions of obligations
charged up to the consumers. It is interesting to recall the fact that the legislative decree nr.
28/2011 related to biogas incentives is supposed to aim at promoting:
15
• an efficient use of waste and by-products, manure or by-products of agricultural activities,
food farming, agro-industrial, breeding and forestry, of products deriving from non-food
farming, short production chains, framework agreements and industry agreements;
• the development of cogeneration plants;
• the realization and use , by agricultural businesses, of plants powered by biomass and
biogas by agricultural activities, in particular micro and mini cogeneration.
4.1 REDUCTION OF INCENTIVES
Besides various principles set out by the decree dated 6 July, it reduced the incentives,
considering:
• that renewable sources have already achieved a sensible development in the last years;
• the comparison with production costs of other European countries;
• the reduction of costs due to economies of scale related to the recent spread of
production from renewable sources.
The reduction of incentives would thus be connected on one hand to the need to reduce the
obligations up to consumers to support renewable resources, on the other hand to criteria
of production costs. The first one has been translated through a maximum limit of expense
that can be incentivized and that is controlled by the tool of power share incentivizable. This
share can be accessed either through an auction mechanism (agreed incentive to the best
applicant, i.e. whoever applies for less in terms of value of the incentive), used for large
power plants exceeding 5 MWel, or through an administrative mechanism of enrolment in a
register up to a maximum: this register can be accessed if certain conditions are met and
pursuant priority criteria provided by the decree. Biogas plants lower than 100 kW, can
avoid these selection mechanisms accessing the incentive directly the moment they become
operative. Though the global mechanism takes into account the cost connected to
incentivizing the mentioned plants by not allowing to exceed the total limits applicable to
all.
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4.2 INCENTIVIZING FEES
The values of the incentives are the following (they are valid for plants that became
operative in 2013, whereas for the subsequent two years the decree applies a 2% reduction
per each year):
The basic incentive tariff can be increased if the following conditions are met:
• Supplementary incentive for greenhouse gas reductions in the case of supply-chainbiomass-fuelled plants, but only for plants between 1 and 5 MWel (this is not particularly
interesting for the agricultural biogas industry)
• Supplementary incentive of € 30/MWh for compliance with the atmospheric emission
requirements (not for waste) - monthly mean values calculated on the days of actual plant
operation as measured by SME (SAE system for thermal power of up to 15 MWt) - ONLY FOR
BIOMASS
• High-efficiency cogeneration
• "District heating": the distribution of heat energy in the form of steam or hot water
produced by one or more sources provided to a large number of buildings or sites via a
network. The energy may be used to heat rooms, for working processes and to provide
household hot water
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5. BIOMETHANE INCENTIVIZING FRAMEWORK
Thanks to the work carried out by CIB and the other partners of the GGG the interest in
biomethane among biogas and biomethane companies and national authorities has
increased. In addition, the publication of the Italian biomethane law in December 2013
meant a great success for the sector .
With the Ministerial Decree dated 5 December 2013, entered into force on 17 December
2013, the pathway to the promotion of biomethane production became operational. The
ministerial decree, adopted by the legislative decree nr. 28, year 2011, that acknowledges in
the national set of rules the directive 2009/28/CE promoting the use of renewable
resources, represents a crucial step for the entire sector of anaerobic digestion as it widens
the number of incentivizing possibilities to use methane which by the way is contained in
biogas obtained from anaerobic digestion processes.
This process raised a significant interest not only because of the incentivizing framework
connected to the electric energy produced through biogas, but also because of the
technology that is able to bring a lot of advantages to the re-utilisation of by-products, biowaste and re-induction into the agronomic cycle of fertilizing substances thanks to a
virtuous use of digestate.
The legislative decree nr. 28/2011 assumes that biomethane contained in biogas obtained
from anaerobic digestion could be used both for the production of electric energy by direct
combustion of biogas and, reasonably more useful, outside production sites through plants
in cogeneration, that could produce electric energy and employ the heat produced by
combustion of methane (this procedure is not always easy to realize on a biogas site) or by
using it for transports contributing to the share that has to be achieved for the consumption
of biofules and that at the moment is granted by imported biofuels. In this way the
mandatory share that the European Commission has set would be achieved with an
important contribution of national production that the Italian industry could benefit from as
well as promoting anaerobic digestion processes. Last but not least, biomethane contained
in biogas could be inducted directly into natural gas grids and be employed as traditional
18
methane. In order to use biomethane contained in biogas in this way the following
conditions must be safeguarded:
• it shall be separated from other products deriving from anaerobic digestion, i.e. carbon
dioxide (water is typically eliminated in the first phases of biogas collection); the process of
separation, commonly known as upgrading or purification of biogas to biomethane requires
the installation of specific infrastructures and a certain consumption of energy;
• that the absence of potentially noxious substances connected to the type of substances
that are input into the digester at the beginning of the digestion process is verified; though
anaerobic digestion of biomass of farming origin generally does not imply noxious
substances issues. The condition hereof is directly linked to the compliance with regulations
related to energy, gas and the water system that grant the quality standards of biomethane
employed in grids;
• if used through collection from the natural gas grid, dedicated infrastructures shall be built
for the connection of the production plants to the grid and for the induction of biomethane
into the grid; for this purpose Authorities should adopt provisions for the procedures and
conditions concerning the connection of the biomethane production plants to the methane
grid;
• in case of induction into the grid, it shall meet with technical parameters of the grid in the
connection point.
The inter-ministerial decree refers to the existing regulations on methane, to the specific
regulations grid managers disciplined in the grid connection code, as well as to temporary
limitations concerning the induction of biomethane into the grid depending on the type of
biomass employed at the beginning of the anaerobic digestion process (the biogas produced
with bio-products and by-products can be inducted into the grid).
A very important concept introduced by the decree is that the word “grid” refers also to the
transport of biomethane by means of private fixed infrastructures, as well as tank carriers;
this means that the biomethane can be transported to the location that uses or inducts it
into consumption (to simplify, to the service station) through a mix of infrastructure and
means of transport, that besides the existing methane transport grids, involve also private
grids or tank carriers (without limitations, i.e. the use of private grids and tank carriers can
replace the methane transport grids).
Incentives can be provided in three different cases:
19
• in case biomethane is simply inducted into the grid
• in case biomethane is used in high-yield cogenerating plants;
• in case biomethane is used for transport
In case the biomethane is inducted into the grid, the producer is compensated for 20 years
from commissioning date with an additional biogas market value that is determined upon
the difference between the double of the average price of gas on the balancing market
(managed by GME) in 2012 and the average monthly price of gas on the same market (the
reference to the balancing market of gas can be modified in future by the Ministry of
Economical Development). This means that the producer will sell biomethane on the market
earning the value of that market and in addition will receive an incentive equal to the above
mentioned difference.
The decree further sets that the plants with production capability higher than standard 250
cubic meters/hour are entitled to the employment of by-products as defined in table 1A of
the decree dated 6 July 2012 or waste of at least 50% of weight.
In “smaller” plants (with production capability up to standard 500 cubic meters/hour) the
producer can opt to have the biomethane collected by the GSE at a price equal to the
double price of the average price of gas on the balancing market in 2012.
In conclusion, some modulations concern the size and source. Specifically, the incentive is
increased by 10% for plants with production capability up to standard 500 cubic
meters/hour whereas it is reduced by 10% for plants with production capability higher than
standard 1000 cubic meters/hours and an increase of 50% is acknowledged for biomethane
produced exclusively starting with by-products as defined in table 1A of the decree dated 6
July 2012.
20
In case biomethane is used in high-yield cogenerating plants the incentives for the
production of renewable electric energy provided by the ministerial decree dated 6 July
2012 has the same application procedures (thus on the electric production) determined by
the same decree save the bonus whereof at article 26 of the decree hereof. The conditions
to apply for the incentive, beside the obvious need to acknowledge high-yield cogeneration
of the electric energy and heat production plant, requires a bilateral agreement of
biomethane provision as well as notifying this agreement to the GSE. Furthermore it is also
important to note that the net incentivizable electric energy production takes account of
auxiliary services of the biomethane production plant.
In case biomethane is used in transport biofuel release for consumption certificates are
allocated as incentive for 20 years from commissioning date (DM MIPAAF 29 April 2008,
nr.110) to subjects who release biomethane for transport consumption upon entering into a
bilateral agreement with the biomethane producer. This agreement will define the duration
and the share-out of the incentive between producer and subject that releases biomethane
for consumption; GSE must be notified of the mentioned agreement.
The main question that must be answered is how many release for consumption certificates
(CIC) are allotted, the conditions and the values of these incentives.
For what regards the number of CIC (namely the above mentioned certificates) that are
allotted it is important to note that the applicable regulations generally entitle one release
for consumption certificate of 10 Gcal biofuels, whereas in case biofuels derive from byproducts or waste, 5 Gcal are enough to obtain a CIC (so called double counting). The
ministerial decree dated 5 December 2013 includes also biomethane in the double counting
if produced with the following pattern:
• biodegradable share of urban waste after the separate collection;
• by-products as per comma 5-ter of article 33 of the legislative decree 3 March 2011, nr.
28, that are not representing a productive or commercial usefulness besides their
employment for the production of fuel or energy, as defined, identified, and described by
the legislative decree 3 April 2006, nr. 152;
• seaweed and non edible substances, these latter ones as defined by article 33, comma 5,
legislative decree 28/2011, table 1B of the Ministry of Economical development decree
dated 6 July 2012;
• by-products defined by article 33, comma 5-quater, legislative decree 3 Marc 2011, nr. 28,
listed in table 1 A by the Ministry of Economical Development decree dated 6 July 2012,
save regulations provided by the legislative decree dated 3 April 2006, nr. 152.
To obtain the so called double counting, biomethane must meet with sustainable criteria
disciplined by Ministerial Decree of MATTM (Ministry of Environment and Sea Safeguard)
dated 23 January 2012 that provides specific guidelines for the biomethane to be defined by
the CTI within 60 days of entering into force of the decree dated 5 December 2013.
Moreover:
• the authorization to build and become operative must contain clear reference to the
biomass employed; in particular in case of co-digestion of biological product weighing up to
30%, the increase of the double counting is allotted on 70% of the produced biomethane;
• the check of the raw material is in charge of the Ministry of Agriculture Food and Forestry
(it also refers to a simplified procedure in a calendar year of the amount of product and byproduct used).
21
For what regards the value of CIC there are no official specifications, beside the fact that the
subjects not complying with biofuel release for consumption dispositions are applied
sanctions. The current exchange market of CIC is handled privately and the transactions are
notified to the GSE. Obviously in the future this market must be regulated on fully open
agreements.
Moreover, it is important to point out that the above mentioned incentive is allotted also to
the producer that doesn’t use the grid and inducts the biomethane in a distribution plant for
transport that the same producer built at own expenses (not pre-existing to the decree). In
this case the CIC is issued with a further increase of 50% for the first 10 years from
distribution plant commissioning date.
All this is applicable to those plants which were commissioned after the decree entered into
force; although the decree introduces an interesting amendment related to the plants
existing at the date the decree entered into force no matter if they convert their production
(the entire one) to biomethane or if they use part of the biogas produced, also as a
consequence of a greater production capability due to biogas, for the production of
biomethane. In particular, these plants are entitled to the above mentioned incentives as
specified in the following table:
Type of incentive
Grid induction incentive
Amount
40%
Transport use incentive
70%
In car use incentive
40%
Key to table: see excell
The duration of the entitlement to the incentive is of 20 years for existing plants that are not
applying for the incentive, that is the residual period of entitlement to the incentive period
with a 5-year increase.
To apply for the incentive applicants must be issued a title by the GSE; in particular this title
has to be requested within a year from commissioning date of the plant in compliance with
the rules set by the GSE. In conclusion, the decree can be practically executed when further
technical requirements are met, as specified in the following table (the timing is obviously to
be referred to the entering into force of the decree).
22
1
2
3
4
5
6
7
who
when
Electric Energy and Gas whithin 60 days
Authority
what
deliberation on the calculation of selfconsumptionin biomethane production
Ministry of agriculture
food and forestry
Electric Energy and Gas within 60 days
Authority
procedures on the requirements of raw
materials for the double counting
Liability and procedures to measure the
quantity inducted in the grid and
identification of the liable party and
procedures for the certification and
measurement
of
biomethane
incentivizable
Electric Energy and Gas within 60 days
To use biomethane in transport, must
Authority
regulated
determinationation
of
commissioning date and measurement of
biomethane released for consumption and
incentivizable
Electric Energy and Gas within 60 days
defines the procedures with which the
Authority
incentives for biomethane grid induction
are covered in relation to transport tariffs
of natural gas
CTI - Italian termo- within 60 days
guidelines for the sustainability of
thecnical Committee
biomethane
GSE
within 60 days implementing procedures
from
the
last
provision,
see
3,4,5,6
6. BIOGAS DEVELOPMENT PLANT BY 2020
6.1 DEVELOPMENT PLAN
The main numerical parameters related to the development plan of Italian biogas by 2020
proposed herewith are summarized by the following table (as later clarified the
development plan doesn’t imply an increase of costs for the consumer other than the one
already foreseen and the new electricity production from biogas will be integrated with the
production of biomethane and incentivized following new criteria).
23
production development of electric energy from biogas
2014 2015 2016 2017 2018 2019 2020 total
incre
ase
electric
power 900
incentivized by allinclusive tariff
new
electric
100
100 50
250
production
from
biogas covered by
margins derived from
registers MD 6 July
2012 (MWel)
new
electric
10
50
50
70
70
250
production
from
biogas covered by
margins derived from
the conversion to
biomethane
in
existing biogas plants
(MWel)
overall increase of
100
110 100 50
70
70
500
electric
production
from biogas (MWel)
Development
biomethane
production
2014 2015 2016 2017 2018 2019 2020 total
incre
ase
Production
of
biomethane
(Nm3
million)
New production of 4
38
58
90
109 187 187 672
biomethane
(Nm3
million)
equivalent
electric 2
19
29
45
54
93
93
336
power to therealized
production
of
biomethane
(Mwe
eq)
evolution
of
the
biomethane
sector
evaluated
in
equivalent
electric
power (Mwe eq)
2014 2015 2016 2017 2018 2019 2020 total
incre
ase
24
total by
2020
1400
total by
2020
672
total by
2020
equivalent
electric
power from biogas
(Mwe eq)
Increase of electric
power from biogas
(Mwe)
Overall Development
biomethane
production
(Biomethane as it is
and biomethane in
biogas in electric
production)
902
119
139
2015
1.984 2.132
2016 2017 2018 2019 2020 total total by
incre 2020
ase
2.311 2.511 2675 2939 3.202 1.222 3.202
4
38
58
90
109
187
187
672
110
121
110
55
77
77
550
2014
Progressive
total
(million m3)
annual increase of
biomethane
production as it is
(Nm3million)
annual increase of
equivalent
biomethane
production
in
elctricity production
from biogas (Nm3
million)
Italian potential %
biomethane
production
1736
25%
145
104
163
163
40%
834
40%
For what regards employment (both permanent and temporary during all the phases of the
making of the plants) and the investments, the development plan proposed would entail the
following evolution (cf. following table).
25
Development of employments
2014
2015
2016
2017
2018
2019
2020
total
increas
e
total
by
2020
Employees
1268
7
Increase of
permanent
employess
2441
6
1674
994
direct 7933
indirec
t
5.154 680
increase of
temporary
employees
investment
developmen
t
1213
8
2014
Investmens
in Million EU
increase of
investments
2015
1955 2040
1.161 1211
1467
871
2296
1363
2296
1363
794
829
596
933
933
1417
8
1479
0
1063
9
1665
2
1665
2
85049
2020
total
increas
e
2016
2017
2018
2019
11728
4239
total
by
2020
8158
559
653
682
490
767
767
3919
In short, the goals of the plan can be summarized as follows
26

By 2020 achievement of 40% of the potential of Italian biogas, by 2030, a production
of about 3,2 billion Nm3 equivalent biomethane/year, a bit less than 2/3 of the
production of Italian natural gas, almost doubling the rate of internal self-supply of
methane;

Creation of about 12.000 new permanent jobs, to be added to the ones safeguarded
in the agricultural production chain connected to the production of
biogas/biomethane;

14-15.000 temporary jobs in a year during the realization phase of the development
plan;

Additional investments of 4 billion Euro, mainly realized by employing Italian
technologies and manpower, strengthening the competitive standing on the foreign
market of agricultural and industrial branches such as:
◦
Agricultural production chains
◦
Agricultural engineering
◦
Component production industry related to methane and biogas
◦
Methane vehicles industry
6.2 GOALS AND SPECIFIC TOOLS
The goal is to pursue the development related to the production of electric energy from
biogas in a flexible and coordinated way in order to:
-
Promote a greater use of biogas in traction by replacing imported biofuels;
-
Promote the use of biofuels and thus improving efficiency in reducing CO2 emissions
and use of agricultural land (advanced biofuel as biomethane, ethanol from lingocellulose, hydrogen);
-
Allow the creation of a share for the cogeneration from biogas at a fixed price on
the component A3 triggering the allocation of incentivized production during the
high-priced hours;
-
Incentivize a more efficient use of biogas energy promoting biogas plants that
connect the electric system with the methane system.
The sustainability of the development plan (meant to not increasing the costs for the final
consumer more than already foreseen) is a feasible if the realization of new plants (granting
development and continuity to the sector) is supported by:
-
The resources allocated for the registers required by the Ministerial Decree dated 6
July 2012 and not used (in fact, many plants will not be realized);
-
The saving on the obligation A3 deriving from the re-conversion (also partial or in
any case voluntary) of the existing production from sole electricity production to
biomethane production.
Compatibly with the guidelines of the European Commission concerning competitions:
27
-
The access of new plants to authorization shall take into account the threshold of
500 kWe;
-
For plants up to 500 kWe, the electric production will be incentivized by means of a
20-year feed-in premium;
-
The production of biomethane will be incentivized through tools introduced by the
decree dated 5 December 2013 by granting a full incentive instead of a partial 70%
even in cases of reconversion of existing plants
Essentially there are two main intervention tools:
1. Definition and implementation of the regulations provided by the biomethane
decree dated 5 December 2013 and their integration with further regulations which
are deemed to be necessary for the realization of the development plan (completion
of the regulations of biomethane);
2. “Register recovery”: IV° – V ° register for biogas by 2015 and 2016 and voluntary
switch form sole electricity production to a combined production of electricity and
biomethane in existing plants with the setting-up of new registers by 2017-2020 for
new combined production of electricity from biogas and biomethane (new
production development);
3. Given the programmability of biogas plants, the introduction of a flexible
mechanism should promote the capability of plants of being managed flexibly. Since
the all-inclusive tariff reduces the amount charged to the system in case the
production is concentrated in high-priced hours, the mechanism hereof is supposed
to promote a programmed shift of the production in these hours leading to a
significant reduction of the obligation in A3 for the final consumer (promotion of the
flexibilization in managing the plants);
4. Useful development of the heat produced by the plant (energetic efficiency
development);
5. Support of R&D activities by creating two clusters related to the biogas refinery
technology (cluster biogas refinery).
6.2.1 COMPLETION OF BIOMETHANE REGULATIONS
GOALS
28
-
More clearness concerning the biofuel release for consumption certificates (CIC)
-
Incentive to a more efficient use of energy from biogas that promotes an improved
integration between the processes of the plant and the time trend of the residual
load of the system until it reaches an energetic exchange between the electric grid
and the biomethane production (power to gas)
-
Promote biofuels that are more efficient in reducing CO2 emissions and the use of
agricultural land (Advanced biofuel as biomethane, lingo-cellulosic derived ethanol,
hydrogen, etc.)
Tools
-
Clearness and bankability of the CIC market
-
Producers of biomethane should be granted CIC directly, having the GSE
collecting them at a minimum collection price that is the actuation of
equipollent tools (minimum collection price e.g. 50% of the average
sanction value for obliged subjects)
-
The direct grant of the CIC should occur by means of a monthly ex ante
assignment against the exclusive use of matrixes listed in table 1A and 1B
-
The above mentioned CIC shall be collected by the GSE, upon request of the
producer and the applicable conditions; the GSE will sell the collected CIC to
the obliged subjects. Further, GSE should foresee a tariff rate on fuels that
would cover possible capital loss occurring in the collection mechanism, in
other words, resorting to a revenue deriving from the carbon tax which is
still object of governmental study
-
Introduction into the legislation of the concept of advanced biofuel as valid in other
countries (USA for example) and as proposed by the European Commission (October
2012), in relation to the land efficiency and the reduction of greenhouse gas
emissions.
-
Granting 100% of the CIC to plants that opt for coexistence (Art. 6 biomethane
Ministerial Decree) that adhere to the voluntary reduction of at least 15% power
-
Incentivizing the realization of biogas plants with a P2G 3 technology producing onsite electric energy from intermittent sources, in other words extracting electric
energy from the grid to stabilize the residual load, by granting a certificate with an
energetic content of 3,5 Gcal for the methane produced from hydrogen;
-
Ex ante approval of a mid-term period increase of the biofuels induction obligation
by 2020 subject to law n. 81/2006, foreseeing a share for advanced biofuel (as
shown in the following table)
3
Power to gas: the production of hydrogen by means of electrolysis of water by collecting electric
energy from the grid and subsequent methanation of biogas CO2 to methane.
29
2014
2015
2016
2017
2018
2019
2020
4,5%
5,0%
5,5%
6,0%
6,5%
7,0%
7,5%
0,50%
1,0%
1,0%
1,5%
2,0%
2,5%
4,5%
4,5%
4,5%
5,0%
5,0%
5,0%
5,0%
d-TOTAL OBLIGATION 4,5%
WITH
DOUBLE
COUNTING (a+b)
5,5%
6,50%
7,0%
8,0%
9,0%
10,0%
a-Total obligation
b-High efficient biofuels
c-Other biofuels
6.2.2 DEVELOPING NEW PRODUCTION
Use of resources deriving from not having used registers I-II-III provided by the
Ministerial Decree 6 July 2012
Goals
The registers provided by the Ministerial Decree dated 6 July 2012 allow allocating for
the production of electricity and amount deriving from biomass and biogas of about 500
MW. In 2013 there were about 300 MW given out for an overall EU220 million out of
which about EU 90 million are due to biogas. The experience has shown that the power
really produced is much lower than the one allocated in the registers: form the EU220
million foreseen there only a poor 10% was assigned (EU21,4 million in all out of which
EU16,3million to biogas with a corresponding power estimate of some 13 MW). The
total amount that could be allocated by the registers would be ca. EU330 million. At the
moment there is no reliable forecast related to the final outcome of the realization
processes of the plants, though it is reasonable to think that at least 50% will not be
built. The not realized power quantity, some 250 MWe, and the related cost
commitment of EU185million, should be provided again to the biogas sector until 2020.
Tools
30
-
Opening of new registers dedicated only to biogas in 2015, 2016 and 2017 (IV-V and
VI register) – also in these cases excluding the access outside the register
mechanism of the plants up to 100 KWe. At least two registers a year shall be
organized.
-
Admitting plants up to 500 KWe
-
Feed-in premium incentive, that entitles the producer to induct electric energy into
the grid, i.e. self-consumption, for 20 years
-
Entity of the feed-in premium incentive that differentiates size of plant subject to
what already started by the Ministerial Decree dated 6 July 2012, more precisely:
o
€170 /MWhe to plants up to 300 KWe
o
€140/MWhe to plants from 301 KWe up to 500KWe
-
Obligation to exclusive use of biomass as shown in tables 1A and 1B (this regulation
aims at easing the coexistence with biomethane and avoiding monoculture of small
grain cereals)
-
Adding to the priorities of admittance to the registers, after the generic preference
already foreseen for plants in agricultural businesses, the specification “plants to be
realized in regions depending on the relation between installed MWe /agricultural
UAL” inversely proportional to the existing value of this relation
-
Promoting the cogenerating functioning (cf. chapter 2.6) admitting to the calculation
of useful heat, the one derived from the process used in the production of
biomethane and/or semi-finished products for industrial fertilizer etc.
6.2.3 VOLUNTARY RENOUNCEME NT OF THE ALL-INCLUSIVE TARIFF AND
PROPORTIONAL CREATIO N OF A NEW ANNUAL AL LOTMENT TO DEVELOP NEW
COMBINED ELECTRICITY/BIOMETHANE PRODUCTI ON CAPABILITY
Tools
-
Promote an increased use of biogas for traction
-
Allow the creation of a further batch (beside the previous share deriving from the
recovery of non-used availability in the registers subject to the Ministerial Decree
dated 6 July 2102) for the production of electric energy in combination with the
production of biomethane at an unvaried obligation on component A3
Tools
-
31
Entitled Subjects to the reduction applied by the all-inclusive tariff: when a voluntary
reduction of at least 15% occurs (this document will later assume an average
reduction of 30%) to the level of production (electrical MWh) admitted to the
incentive by the all-inclusive tariff, the operator remains with the all-inclusive tariff
in the residual period at the tariff in force (the producer can reduce the power of an
equal percentage, i.e. producing less hour/year per incentive). Due to this voluntary
reduction the producer is entitled to obtain 100% CIC
-
with the saving that is generated, a new batch can feed the opening of new registers
for the years 2016-2020, applying the regulations of the registers IV-V° and VI that is
defined annually for the amount of power admitted to the incentive in relation to
the saving generated from the renouncement of the all-inclusive tariff, therefore at
unvaried revenue for the component A3 of the electrical tariff
In addition all the tools mentioned at the previous chapter are applied.
6.2.4 PROMOTION OF PLANT MANAGEMENT FLEXIBILIZ ATION
Goals
-
Reducing the obligation charged to the consumer by promoting the production
flexibilisation
-
Providing system programmability with a positive contribution
-
A flexible production is based on the fact that biogas plants are, within certain limits,
programmable. The potential of programmability would allow to concentrate the
production in high-priced hours that, for the existing plants and the incentive
structure (basic all-inclusive tariff), would mean a reduction of the obligation for the
component A3.
Tools
-
Transform the power limit for the assignment of the all-inclusive tariff in an energy
limit (maximum 8760 MWh/year incentivizable)
-
Determine a simplified procedure to modify the arrangement of the plants
-
Assigning a modulation component when production is concentrated in high-priced
hours within certain limits (the goal to concentrate can be defined by GSE
depending on saving targets which are then shared with the producers)
-
The producer is obliged to define a production program to meet with mandatory
goals
-
At least 50% of the saving realized on A3 is assigned to the producer
6.2.5 DEVELOPMENT OF ENERGEY EFFICIENCY
In addition to what above mentioned it is to be underlined that the current
electricity production from biogas scarcely accompanies a useful use of the heat
produced. If the heat generated and usable from one plant of 1MW was employed
to satisfy the heat needs of a client in the nearby, the client could save more than
EU100.000/year on equivalent methane gas (cf. following table).
32
estimate of the saving for the final consumer deriving
from the use of useful heat produced in biogas plants
thermic power usefully usable (kWt)
500
production hours
4880
Thermic energy (MWht)
3
methane PCI (kWhto/ m )
Avoided quantity of methane
Avoided cost from methane purchase
(EU/ m3 average)
(EU/Year)
2440
10
271111
0,45
122000
For this reason, beside the mentioned regulations, the coexistence of incentivizing the
production of electricity from biogas/biomethane with the promotion of energetic
efficiency must be carefully clarified (i.e. titles of energetic efficiency).
7. URGENT ACTION PLAN TO DEVELOP ITALIAN BIOGAS/BIOMETHANE
1. Publication of the implementing decree dated 5 December 2013 by AEEG, CTI, GSE
and MIPAAF that will allow the production and use of biomethane
2. Clarification of the real value of CIC and their assignment procedures
3. Clarification of future national approaches related to biogas, such as gaining an
understanding whether and how the sector will be incentivized in the coming years
33
LIST OF ABBREVIATIONS
el
electrical
ha
hectare
KW
kilowatt
KWh
kilowatthour
m3
Cubic metre
Nm3
Norm cubic metre
MW
megawatt
th
thermal
to
total
34