On 27.02.02, the Emergency Ordinance establishing the legislative framework for the development of the biomethane sector, including its injection into the natural gas infrastructure, was adopted.
Biomethane can represent an important component of the Romanian energy mix, that is why Federația Patronală a Energiei, together with its members, welcomes this first step towards the creation of the necessary legislative framework for this technology.
Federația Patronală a Energiei contributed substantially by providing technical expertise in the public consultation process.
The energy sector awaits the consolidation of this step through the adoption of secondary legislation, which is a prerequisite for the development of biomethane projects and the realization of investments in a predictable way.
Biomethane is a renewable gas that is produced by purifying biogas from organic waste (manure, agricultural waste, sewage sludge). Biomethane is carbon from the biological cycle, which does not mobilize carbon from geological reserves, so its environmental impact is lower.
For Romania, biomethane brings benefits on several levels:
- Recovering agricultural waste with energy production, contributing to national energy security;
- Supporting the economy in rural areas;
- Meeting the country's climate goals.
Read more in the dedicated policy paper: fpe.ro/cum-sustinem-productia-nationala-production-of-bbiometan/ .
Main regulatory directions of the Emergency Ordinance are:
- establishing the legal framework for injecting biomethane into the NTS and distribution networks;
- -establishing the necessary legal framework for the development of support schemes to finance biomethane production projects by the Ministry of Energy, in compliance with state aid rules;
- clear delineation between natural gas producers and biomethane producers by introducing a specific legal regime (definitions, dedicated rights and obligations) adapted to the technical particularities of biomethane production and injection;
- Introducing a category of applicants for connection allowing the take-up of natural gas from wells not connected to the NTS/distribution for injection into the networks as an alternative to gas flaring, in line with European methane emission reduction targets.
We can expect a number of positive effects:
- Increase investor confidence by removing legal uncertainties;
- Unblocking FIDs (final investment decisions) in this area, as the Ordinance creates the preconditions for injecting biomethane into the grid and thus facilitates the creation of the biomethane commercial chain.
- Increasing the amount of energy at national level with price protection for consumers.
- Develop this technology for the long term and facilitate the achievement of decarbonization targets in industry and the energy sector.
Energy security, today's most important goal, can be achieved by supporting existing producers, but also by supporting new producers and new technologies. Through its work, Federația Patronală a Energiei, supports the creation of the legislative framework and facilitates the necessary dialog between stakeholders.
