Biomethane aid

Pursuant to Article 43(5) of European Commission Regulation No. 651/2014, the aid per unit of energy shall not exceed the difference between the total levelised costs of producing energy from the renewable source in question and the market price of the form of energy concerned. At the request of Elering AS, KPMG Baltics OÜ prepared a profitability assessment model for biomethane production projects to determine whether the payment of operating aid for biomethane production to the relevant producer meets the European Commission’s conditions for state aid.

We have published on our website the official approved methodology underlying the profitability assessment model for biomethane production projects, the profitability assessment model in Excel format, and the proposals for the public consultation with feedback (attached).

Aid for biomethane producers for certified biomethane consumption

The aim of the aid is to help boost the consumption and production of biomethane and to support activities that help to contribute to the goal that by 2030, fuel produced from renewable energy sources will account for 14 per cent of the consumption of transport fuels.

The aid will accelerate the expansion of biomethane consumption in Estonia, with the aim of enabling end consumers to consume biomethane at the price of natural gas, while ensuring market-based intensification of production and investment security in the sector in order to transition to market-based biomethane production in mid-2024.

We accept applications for aid from 6 February 2018 to 30 June 2024 or until the budget funds allocated to support the activity are exhausted. The amount of funds available is directly equal to the actual revenue generated from the auctioning of emission allowances.

A legal entity that meets the requirements set out in section 9 of the “Terms and conditions and procedure for the use of support for the development of the biomethane market” can apply for the aid.

For transactions related to biomethane guarantees of origin and biomethane statistical guarantees, Elering has developed an information system for gas guarantees of origin (register) that includes all market participants. To apply for aid, you must first register as a biomethane producer in the register at biometaan.elering.ee.

Subsidised biomethane is produced by Rohegaas OÜ, Biometaan OÜ, Vinni Biogaas OÜ, Tartu Biogaas OÜ, Oisu Biogaas OÜ, Bioforce Aravete OÜ, and Bioforce Ebavere OÜ.

The eligibility period for operating aid for biomethane production paid under the regulation “Terms and conditions and procedure for the use of support for the development of the biomethane market” has expired as a result of the exhaustion of the intended budget funds. The last disbursements of operating aid were made on 21 February 2024 based on payment applications for the period of January 2024. The last payment of aid to producers was made proportionally to the remaining budget volume of the measure.