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Policy frameworks and voluntary markets for biomethane – How do different policies influence providers’ product strategies?

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  • Herbes, Carsten
  • Rilling, Benedikt
  • Ringel, Marc

Abstract

Replacing natural gas with biomethane is an option to help decarbonize residential heating and cooling. But little biomethane is in the voluntary markets for heating. We examined biomethane-based gas tariff offerings in the UK, Germany, Austria and Switzerland, using qualitative content analysis and compared them to the national policy contexts. We find that current policies in all four countries under review clearly prioritize using biomethane for electricity generation and in transport, while leaving the heating market largely unregulated. Nonetheless, we find influence of policies on the heating market. Offerings in Germany show this influence in their biomethane content and underlying feedstock and in Austria regionality seems to be driven by grid charge regulations. If German policy makers want to channel more biomethane into residential heating, they are advised to harmonize competing support schemes for biomethane in electricity generation, transport and heating/cooling, waive mandatory CHP requirements, lower minimum biomethane content and to target existing, not just new, buildings. In the UK, the RHI should include residential buildings and using the Austrian refund system could help to develop biomethane tariffs from regional sources in Switzerland.

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  • Herbes, Carsten & Rilling, Benedikt & Ringel, Marc, 2021. "Policy frameworks and voluntary markets for biomethane – How do different policies influence providers’ product strategies?," Energy Policy, Elsevier, vol. 153(C).
    • Handle: RePEc:eee:enepol:v:153:y:2021:i:c:s0301421521001610
    DOI: 10.1016/j.enpol.2021.112292
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