1. Ofgem Review Group on Energy Market Issues for Biomethane Projects (EMIB) Update on Issues REA Biogas Group the voice of the UK Biogas industry since 2004 15 November 2011 John Baldwin Chair, REA Biogas Group

2. Biomethane Facility Ownership Issues Biomethane Producer FundingOwnershipMaintenanceNetwork Operator Option 1 (UK DN Model) Zero RAV Option 2 (German Model) Service ChargeFunded through RAV Option 3 (Dutch Model) Plant built to Network Operator Specification Set Specification (NEA) Option 4 GT Licence modelConnected system Option 5 Part ownership Odorant facility Part ownership

3. Ownership of Odorant Plant Producer Owns Should not impede GS(M)R Compliance Work to GDN Specification Avoid plant duplication downstream GDN Owns Some technical issues GDN accepts available signal from upstream Producer plant Avoid plant duplication downstream Need Standards of Service … Biomethane Facility Odorant Plant

4. Biomethane Facility Standards of Service Issues Standards of Service needed for efficient operation (Options 4 & 5) Non-contestable Works Standards Initial inquiry stage Network Capacity Enquiry Standard Free indication (facilitate rapid go/no go decisions) Provision of Chargeable Capacity Enquiry (facilitate operator certainty) Pre construction phase Construction Standards (Valve/Telemetry etc.) Chargeable Feasibility Study Response Time Charging Quotation Accuracy Construction Phase Commencement of Works Date Substantial Completion Date Notification of Contract Variation Note: If odorant is included this also part of non contestable works

5. Biomethane Facility Standards of Service Issues Standards of Service needed for efficient operation (Options 4 & 5) Cont. Contestable Works Standards GDN Provision of Requirements Specification GDN Evaluation of Producer Design Turnaround time Chargeable? Standard Charges or Bespoke Producer builds to accepted specification then assume no further acceptance process Note: Ideally BtG plant suppliers would pay for this so that their plant is 'approved' technically for use