Biomethane Subsidy

The biomethane production subsidy is paid per MWh of biomethane consumed on the basis of cancelled guarantees of origin. 

The rate of support depends on the usage of gas. If biomethane is consumed as a transport fuel, the amount of aid is 100 €/MWh less the average market price of natural gas for the current month. If biomethane is consumed for other purposes via the gas system, the amount of aid is 93 €/MWh less the average market price of natural gas for the current month.

The purpose of the subsidy scheme is to increase the consumption and production of biomethane and support operations that contribute to the attainment of the goal, by the year 2030, energy from renewable sources makes up 14% of the consumption of transport fuels.

The eligibility period for the scheme runs from 1st January 2018 to 31 December 2023 or until the depletion of the budget funds allocated to support the activity with the aim to go over to market-based biomethane production in Estonia from 2024. The estimated budget for the subsidy scheme is 38 489 000 €.

A legal applicant who meets the conditions of Conditions and Rules for Using Aid Granted as Support for the Development of the Biomethane Market can apply for the subsidy.