A consultation regarding Future Support for Low Carbon Heat is on-going in an attempt to set out clear proposals for the Green Gas Support Scheme (GGSS) and the Green Gas Levy (GGL).
The aim of the GGSS is to encourage the deployment of anaerobic digestion (AD) biomethane production facilities to increase the amount of ‘green gas’ injected into the National Grid. This will be achieved by providing financial support to biomethane producers based on the amount of eligible green gas they make available to the grid.
In addition to increasing the deployment of AD biomethane gas plants, the GGSS also aims to ensure value for money and to minimise market hiatus for the biomethane industry.
The initiative will be funded by the Green Gas Levy which will be placed on all licensed gas suppliers in Great Britain, excluding those who produce at least 95% green gas.
Administrated by Ofgem, the GGSS is expected to launch in Autumn 2021 and the first levy payment will be taken during the first quarter of the financial year 2022/23.
Consultations regarding the GGSS and the GGL are on-going, with Ofgem seeking views on the proposed administration – the deadline for responses is 13 August 2021. Two Stakeholder engagement meetings are also scheduled for the end of July.
