Provide your insight to the GGSS Annual Tariff Review

As you may be aware, on 2nd May, DESNZ opened a call for evidence to inform the Green Gas Support Scheme’s (GGSS) 2023 Annual Tariff Review (ATR).

The GGSS regulations allow tariffs to be increased or decreased on 1 October each year from 2022 to 2025. Tariffs can then reduce every quarter in between if a degression is triggered. The Annual Tariff Review informs the decision to change or maintain tariffs, acting to ensure that payments continue to incentivise the deployment of biomethane production plants effectively, whilst ensuring value for money for billpayers.

This Review seeks views from the stakeholders on the outlook for the biomethane industry and on whether specific costs and revenues for biomethane plants have changed over the past year. The call for evidence will end on 31 May 2023.

Our policy team is currently working on the ADBA’s response to the ATR and we believe your input will be highly valuable to strengthen our response. It would be great if you could send me some brief answers to the following questions, by Monday 5th June.

1.       What are the main challenges in the operation and development of an AD plant in the context of opex, capex, supply chain, and feedstock availability? 

2.       What technological developments in equipment since July 2020 have largely affected the cost of biomethane plants? 

3.       Does the GGSS tariff appropriately compensate plant development for the following: 

• Tier 1 (<60GWh) 
• Tier 2 (60-100GWh)
• Tier 3 (100-250GWh)? 
• Is the maximum of 250GWh limiting?

4.       To what extent does revenue from RTFC contribute to your biomethane plant/s?  

5.       If RTFCs are a revenue stream for your biomethane plant(s), how have you taken this into account in your financial planning? — As a proportion of biomethane production at a particular GGSS tariff tier level OR As a proportion of all biomethane production? 

6.       What are your expectations for the future development of RTFC prices? 

7.       How do Green Gas Certificates impact the attractiveness of developing biomethane plants? 

8.       In the last year, what market developments have impacted the selling potential of Digestate and BioCO₂?

Please email wasundara.doradeniya@adbioresources.org with the answers.