Arera (Regulatory Authority for Energy, Networks and the Environment) with resolution dated 9 April approved the remuneration methods, through the instrument of guaranteed minimum prices for biogas plants, a long-awaited measure strongly requested by the sector. The provision, originally included in the “Regasifiers Decree” and subsequently approved by Parliament, is finally implemented through the recent resolution of the Authority.
According to the provisions of the resolution, starting from 28 July 2023, the GSE (Energy Services Manager) will provide producers with a monthly remuneration based on operating costs, determined on the basis of Arera’s indications and the report prepared by RSE.
The dedicated retreat
Article 13, paragraphs 3 and 4, of legislative decree no. 387/03 and paragraph 41 of law no. 239/04 have provided, for some types of electricity production plants, the possibility of requesting the withdrawal at an administered price of the electricity produced and fed into the grid (dedicated withdrawal). The dedicated withdrawal regime is an alternative to the normal electricity sales regime and is reserved for:
– to electricity produced by plants with a power of less than 10 MVA, whatever the source;
– the electrical energy produced by systems, of any power, powered by renewable wind, solar, geothermal, wave, tidal and hydraulic sources, limited, for the latter source, to flowing water systems;
– the electricity referred to in article 3, paragraph 12, second sentence, of legislative decree no. 79/99 (surpluses referred to in article 22, paragraph 3, of law no. 9/91 from renewable sources) provided that they are owned by a self-producer, as defined by article 2, paragraph 2, of the same legislative decree no. 79/99.
Guaranteed minimum prices
Guaranteed minimum prices have a dual purpose:
– ensure the economic survival of smaller plants that exploit marginal or residual resources which, as such, could not otherwise be used;
– guarantee a minimum remuneration, whatever the trend of the electricity market.
This purpose implies that the minimum guaranteed prices must be related to the management costs of the electricity production plants and, as such, are subject to being updated over time.
The electricity withdrawn by the GSE as part of the dedicated withdrawal is placed on the market by the latter: the difference between costs and revenues borne by the GSE is borne by the ASOS tariff component and is substantially attributable to the minimum guaranteed prices.
The CIB-Italian Biogas Consortium expresses full satisfaction on this point. President Piero Gattoni commented: “Arera’s decision on guaranteed minimum prices represents a fundamental step to preserve the heritage of biogas plants, fundamental for the competitiveness and ecological transition of Italian agricultural companies. This result is the result of long and intense work conducted with the Government, parliamentary forces and the Authority in recent months.”
Gattoni underlines the importance of this measure in ensuring the operational continuity of agricultural biogas plants, thus contributing to the country’s energy security and decarbonisation objectives. He also hopes that the resources allocated to companies will be disbursed in the shortest time possible.
The legislation on guaranteed minimum prices allows all biogas plants that benefit from incentives expiring by 31 December 2027 and that cannot convert to biomethane to receive a minimum price based on actual production costs, allowing them to continue producing energy renewable electricity and heat. Arera has also started a consultation with all interested parties, which will end on May 24th. The GSE will then proceed with the disbursement of the resources, subject to any adjustments based on the observations and proposals received during the consultation.
Tags: Guaranteed minimum prices biogas biomass plants
