Biomethane subsidies

Source: JOIN IEA/IRENA Policy and Measures Database
Last updated: 19 July 2018

Italy has introduced a new system of incentives for biomethane fed into the grid, destined for cogeneration or sold as motor fuel.

The incentives for biomethane destined for use as automotive fuel is the emission, for twenty years, of certificates for the use of biofuels (see: Italian Ministry of Agriculture and Forestry decree 29 April 2008 and subsequent amendments).

For feeding into the grid, the producer is entitled to a special rate, for twenty years, equal to twice the 2012 market value for natural gas, less the monthly cost of the gas itself, if selling directly on the market. For plants under 500 Sm3/hour, rather than selling the gas on the market they can opt for dedicated withdrawal by the GSE of all the biomethane for twice the 2012 market price for gas. Plants using by-products exclusively are entitled to a 50% increase in the incentive.

For biomethane used for cogeneration the bonus is of the current electricity rates for biogas, net of the energy consumption for the high-yield cogeneration plant (see: Italian Ministry of Economic Development decree 6 July 2012).