Elering signs agreement with Ministry to implement biomethane subsidy scheme

Elering and the Ministry of Economic Affairs and Communications have signed an agreement to implement the biomethane subsidy scheme, with the aim of increasing use of renewable gas fuels in the transport sector.

Elering’s goal is to facilitate the development of the gas market and use of gas by implementing the subsidy scheme, helping gas produced from local and renewable sources to enter the market alongside fossil fuels and imported gas.

Elering’s strength in implementing the biomethane subsidy scheme is its prior experience in administering the renewable energy subsidies paid out to electricity producers, as well as in its development of the system for certificates of origin.

Under the agreement, Elering will begin registering, processing and monitoring applications for biomethane production subsidies. The manufacturer will receive the subsidy if it is proved that the biomethane produced as gas fuel is consumed.

Based on the agreement, Elering will develop and maintain a biomethane certificate of origin registry that will allow consumers to certify the origin of the greenhouse gas.

Biomethane subsidy payments will begin in 2018. The largest sums are expected to be spent on subsidies in 2019 and 2020.