EU energy system integration strategy: biogas and biomethane in a "circular" energy system

On 8 July 2020 the European Commission presented the energy system integration strategy (COM(2020) 299), in parallel with the hydrogen strategy. The document describes how to combine electricity, heat and gas into one, more efficient system. For the biogas industry it is significant that biogas and biomethane appear among the renewable fuels that are to replace fossil fuels in sectors that are hard to electrify.

Three pillars of the strategy

The communication rests on three assumptions:

1. A more "circular" energy system with the "energy efficiency first" principle, in which waste, waste heat and local resources are used, and biological waste is a source of energy.
2. Direct electrification of end-use sectors, such as buildings, industry and transport, where possible.
3. Renewable and low-carbon fuels, including hydrogen, sustainable biofuels and biogas, in applications where electrification is difficult, for example in heavy industry, aviation and shipping.

The Commission assumed that the share of electricity in final energy consumption would rise from approx. 20% to approx. 30% in 2030 and approx. 50% in 2050.

What it means for renewable gases

The strategy announces an adaptation of the legal framework for the gas market to make it easier to introduce renewable and low-carbon gases, including biomethane, into the grid. The Commission announced the introduction of common terminology and a certification system for renewable and low-carbon fuels, based on the criterion of life-cycle emission reductions. Plans also included revising the Renewable Energy Directive, the Energy Efficiency Directive and the regulation on trans-European energy networks.

Significance for Poland

For biogas the strategy means a chance of better consideration of local sources in network planning and greater importance for the use of agricultural and municipal waste. For gas network operators — the need to prepare connection conditions for biomethane and to assess how the infrastructure can be adapted to hydrogen. For local governments — an incentive to integrate waste management with district heating and energy systems.

What next

The strategy was to translate into specific legislative proposals in 2021. For biogas plants and biomethane producers this meant the need to follow closely the changes in the RES and gas market regulations, because they will decide the rules of connection, trade in guarantees of origin and the sustainability criteria.

Why the strategy matters for agricultural biogas plants

In the traditional approach a biogas plant produces electricity and heat, and its relations with the electricity and gas networks are limited. The integration strategy encourages the flexible use of biogas: both for cogeneration at peak demand and for producing biomethane injected into the grid. This, however, requires clear rules on connection, tariffs and certification, which in many states, including Poland, were only just being created.