Holders of prior registration for the production of gases from renewable origin, including biomethane, have specific rights regulated by Article 71 of Decree-Law No. 62/2020 of 28 August, as currently in force, which establishes the organisation and operation of the National Gas System and its legal framework.
The connection of renewable gas producers to the public gas network is subject to the payment of network connection charges, which are regulated by the Energy Services Regulatory Authority (ERSE).
In summary, what are the rights of a renewable gas producer regarding connection to the public gas network?
A renewable gas producer has the right to connect to the transmission or distribution networks, as applicable, under the conditions set out in the prior registration procedure by the respective operator.
Holders of prior registration to produce gases from renewable sources may allocate their production for injection, in whole or in part, into the gas network, for self-consumption, for export, or for supply to end consumers, using mobile or fixed equipment. They may also sell all or part of the renewable gas to the wholesale supplier of last resort, through bilateral contracts or on organised markets, under the conditions established in ERSE regulations.
In the case of individual or collective self-consumption of other gases, the connection infrastructure connecting the producer and consumers is not covered by the distribution and transmission concessions or licences, as applicable, in force in the relevant geographical area.
How are the charges for connection to the Public Gas Network determined?
Connection charges are established by ERSE in the Regulation on Commercial Relations in the Electricity and Gas Sectors, as set out in Regulation No. 827/2023 of 28 July (pursuant to Articles 179 and 180) based on the principles defined in Article 72 of Decree-Law No. 62/2020 of 28 August, in its current version, namely:
- As a rule, the costs of the connection, from the production facility, serving exclusively one or more producers, up to the interconnection with the Public Gas Network (including injection), shall be borne by the respective producers, including associated connection and injection infrastructures, without prejudice to applicable regulatory provisions.
- If the branch line is subsequently used by another gas producer within five years of coming into operation, whoever bores the costs of its construction shall be reimbursed, in accordance with ERSE rules.
- The network operator may propose oversizing the infrastructure, sharing the costs, if this results in a more cost-effective solution overall.
- The network operator must provide the gas producer with a detailed cost estimate and an indicative connection timetable.
In summary, ERSE sets the rules and methodologies, whilst producers bear the direct connection costs, with cost-sharing and compensation mechanisms where applicable.
This section will be updated whenever new legislative or regulatory developments occur.
For further information, please contact:
General Directorate for Energy and Geology (DGEG) via email: combustiveis@dgeg.gov.pt
ERSE via email: erse@erse.pt
