Ofgem Review Group on Energy Market Issues for Biomethane Projects (EMIB)

Update on Issues

REA Biogas Groupthe voice of the UK Biogas industry

since 2004

15 November 2011John Baldwin

Chair, REA Biogas Group

Biomethane Facility Ownership Issues

Biomethane Producer

Funding Ownership Maintenance NetworkOperator

Option 1(UK DN Model)

Zero RAV

Option 2(German Model)

Service Charge Funded through

RAV

Option 3(Dutch Model)

Plant built to Network Operator Specification

Set Specification (NEA)

Option 4GT Licence model Connected system

Option 5 Part ownershipOdorant facility

Part ownership

•Ownership of Odorant Plant

• Producer Owns • Should not impede GS(M)R Compliance

• Work to GDN Specification• Avoid plant duplication downstream

• GDN Owns• Some technical issues

• GDN accepts available signal from upstream Producer plant• Avoid plant duplication downstream

•Need Standards of Service …

Biomethane Facility Odorant Plant

Biomethane Facility Standards of Service Issues

Standards of Service needed for efficient operation (Options 4 & 5)

•Non-contestable Works Standards• Initial inquiry stage

• Network Capacity Enquiry Standard• Free indication (facilitate rapid go/no go decisions)• Provision of Chargeable Capacity Enquiry (facilitate operator certainty)

• Pre construction phase• Construction Standards (Valve/Telemetry etc.)• Chargeable Feasibility Study

• Response Time • Charging

• Quotation Accuracy• Construction Phase

• Commencement of Works Date• Substantial Completion Date• Notification of Contract Variation

Note: If odorant is included this also part of non contestable works

Biomethane Facility Standards of Service Issues

Standards of Service needed for efficient operation (Options 4 & 5)Cont.

• Contestable Works Standards• GDN Provision of Requirements Specification• GDN Evaluation of Producer Design

• Turnaround time• Chargeable?

• Standard Charges or Bespoke• Producer builds to accepted specification then assume no further

acceptance process

Note: Ideally BtG plant suppliers would pay for this so that their plant is 'approved' technically for use