Tom Melhuish 6 min read

Green Gas Support Scheme (GGSS)

There are plenty of government schemes to help the UK become a more environmentally responsible country and increase the consumption of green energy.

A crucial part of the UK’s plans to achieve carbon neutrality by 2050 is to reduce dependence on fossil fuels such as natural gas and encourage green alternatives.

The Green Gas Support Scheme encourages investment in biogas plants that offer a green alternative to natural gas.

In this article, we explore the Green Gas Support Scheme, what it is, and how you can apply to be a part of it.

What is the Green Gas Support Scheme?

The Green Gas Support Scheme, or GGSS, is a scheme that offers financial incentives for the creation or running of new anaerobic digestion biomethane plants to increase the percentage of green gas in the natural gas distribution grid.

The GGSS scheme makes investing in a green gas plant financially viable and has financed many commercial food waste recycling plants which now produce green energy and compost.

The government offers this scheme and is open to applicants based in England, Scotland and Wales.

The GGSS policy is set by the Department for Business, Energy and Industrial Strategy (BEIS) and then administered by Ofgem.

What’s the role of Ofgem in this?

As mentioned above, Ofgem’s role is that of administration. They assess and register appropriate GGSS applications and allow them to commence biomethane production.

The applicants must meet the eligibility criteria to qualify for the GGSS. The full guidance can be found here.

Ofgem is also responsible for validating quarterly production data, support payments, and monitoring and administering compliance with the requirements of the Green Gas Support Scheme regulations.

How long does the Green Gas Support Scheme last?

The scheme was open to applicants on the 30th of November 2021 and will run for four years ending in November 2025.

How are participants paid on the GGSS?

Participants will receive quarterly payments over 15 years, and the amount received is based on the quantity of eligible biomethane fed into the grid.

What is the Green Gas Levy (GGL)?

The Green Gas Levy is a levy placed on licensed business gas suppliers in the UK and includes a requirement to make quarterly payments to fund the GGSS. Licensed gas suppliers pay the Green Gas Levy in the UK and pass these on to customers in business gas rates.

What is the Green Gas Levy default register?

The default register is where a licensed gas supplier fails to meet certain obligations by the deadline given to them. This information will then be published in the GGL default register.

How to apply for the Green Gas Support Scheme

If you have read the guidance document of Ofgem and feel you meet the requirements, you can access the application form through the government’s website here.

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