Green Gas Support Scheme (GGSS): open to applications
This scheme provides tariff support for biomethane produced via anaerobic digestion which is injected into the gas grid.
Applies to England, Scotland and Wales
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Details
The Green Gas Support Scheme (GGSS) provides tariff support for plants producing biomethane via anaerobic digestion which is injected into the gas grid. Tariffs are calculated to compensate plants for the building of new infrastructure to produce biomethane and ongoing operation costs.
It is funded by the Green Gas Levy which is applied to all licenced fossil fuel gas suppliers.
The scheme follows the Non-Domestic Renewable Heat Incentive (RHI) Scheme which closed to new applicants on 31 March 2021.
The GGSS opened on 30 November 2021. It is currently open to applications for 4 years, although we recently announced that we intend to extend the GGSS to 31 March 2028 via the Mid-Scheme Review.
Registered participants will receive tariff payments for 15 years.
How to apply
You can apply on Ofgem’s Green Gas Support Scheme portal
Find out more about the scheme and read the scheme guidance on the Ofgem website.
Tariffs and budget management
Two separate budget caps have been set for the scheme:
- the Applications Budget Cap (ABC): a cap against which applications to the scheme are checked to ensure that there is available budget based on their estimated production and resulting spend
- the Overall Scheme Expenditure Budget Cap (OSEB): set above the ABC, this cap directly correlates to levy collection
Visit the Green Gas Support Scheme budget management page for budget cap details.
Tariff review
The Annual Tariff Review is the primary mechanism to amend tariffs offered to new applicants. The review ensures the scheme continues to meet its objectives and consistently delivers value for money. The outcome of the Annual Tariff Review will be announced annually in the autumns of 2022, 2023 and 2024, with any change taking effect at least one month after the announcement.
The degression mechanism on the GGSS acts to prevent over-compensation where biomethane deployment is greater than anticipated. It will do so by automatically reducing the tariffs available for new applicants by 10%, if set expenditure thresholds within a quarter are expected to be exceeded.
Expected outcomes
The scheme will help decarbonise Great Britain’s gas supplies by increasing the proportion of ‘green’ gas in the grid. During peak years of production, biomethane plants incentivised by the GGSS will produce enough green gas to heat around 200,000 homes. The GGSS is expected to contribute 3.7 million tons of CO2 equivalent of carbon savings over Carbon Budgets 4 and 5, and 8.2 million tons of CO2 equivalent of carbon savings over its lifetime. This is equivalent to taking approximately 3.6 million cars off the road for a year. We expect the GGSS to help support high quality jobs in the renewable energy sector, at a time when economic recovery is so important.
Related links
We consulted on the GGSS in our April 2020 Future Support for Low Carbon Heat consultation. We published the government response in March 2021 and the final stage Impact Assessment in September 2021.
Last updated 21 October 2023 + show all updates
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We are extending the Green Gas Support Scheme to 31 March 2028.
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An update on plans for the GGSS Mid-Scheme Review consultation in early 2023.
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The Green Gas Support Scheme (GGSS) is now open to applications.
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First published.