Welcome RIIO2 boost for Green Gas sector following REA and REAL Campaigning

• Ofgem today published their RIIO-GD2 specific methodology
• The announcement sees Ofgem encourage the deployment of biomethane
• REA and REAL welcome the announcement having campaigned for the greater use of biomethane, reversing earlier proposals that did not include the technology

Earlier today Ofgem published their RIIO-GD2 specific methodology which encourages the deployment of biomethane.

In outlining the price control framework Ofgem “agree that biomethane injection has the potential to be a low regrets approach to decarbonisation” and propose to require Gas Distribution Network operators (GDNOs) to report on biomethane outcomes data as part of the new Annual Environmental Report output. This marks a significant change from the original consultation in which Ofgem proposed to remove many of the metrics currently placed on GDNOs related to biomethane.

This announcement sends positive signals to the biomethane industry and is a strong step towards the necessary and urgent decarbonisation of the UK gas network. REA and REAL welcome the announcement following a successful, lengthy campaign to reverse Ofgem’s initial approach, which excluded Biomethane, and look forward to continuing our close engagement with Ofgem.

Jesse Scharf, Green Gas Certification Scheme Manager said:

“The GGCS and the REA have fought hard to have the benefits of green gas recognised in the next network price control – from a starting point where Biomethane would have had no recognition or performance metrics, to the final output whereby the regional networks must now work to facilitate biomethane connections, which should ease the process for developing new green gas facilities.”

Dr Nina Skorupska, Chief Executive at the REA said:

“As the Committee on Climate Change and others have outlined, deploying green gas is an effective way of helping decarbonise our energy system, and combines this with a circular economy approach, producing sustainable fertiliser as a by-product, as well as supporting rural economies. The UK will gain considerably from new biomethane capacity which we hope this outcome that we vigorously campaigned for, will result in.”


For more information or to request an interview, please contact:

Hayley Allen
External Affairs Officer
+44 (0)20 7981 0862
[email protected]

Notes to editors

• The full announcement can be found here: https://www.ofgem.gov.uk/publications-and-updates/ofgem-confirms-network-price-control-methodology-so-consumers-can-benefit-cheaper-smarter-and-more-sustainable-energy-network
• Further details within the methodology will need clarification, such as Ofgem’s statement that it will ‘expect’ GDNs to consider biomethane stakeholders when developing proposals under the Stakeholder Engagement Incentive (SEI) output.
• In addition, Ofgem has said it will ‘consider’ GDN proposals for bespoke outputs for biomethane beyond those under the SEI output.

About the Renewable Energy Association (REA)

The REA is the UK’s largest trade association for renewable energy and clean technologies with around 550 members operating across heat, transport, and power. The REA is a not-for-profit organisation that represents renewable energy and clean technology companies operating in over fourteen sectors, ranging from biogas and renewable fuels to solar and electric vehicle charging. Membership ranges from major multinationals to sole traders.

For more information, visit: www.r-e-a.net

Green Gas Certification Scheme

Green Gas Certification Scheme issues Renewable Gas Guarantees of Origin (RGGOs) for units of biomethane injected into the grid and securely tracks them through to gas consumers who are provided with a Green Gas Certificate that can be used as evidence of their biomethane use. The GGCS is the UKs largest biomethane registry both by sales and production capacity of its members.