Biomethane production in Europe has seen significant growth in the last ten years, reaching 4.3 billion cubic metres in 2024. The growing volume of gas injected into existing networks designed only for exit is impacting gas network regulation. This begs the question, “who will pay for the associated costs?”. In this brief, RAP expert Ivan-Petar Yovchev aims to examine cost-allocation models for biomethane connections and explore their implications in the context of decommissioning gas networks.

Policymakers have the opportunity to ensure that sustainably produced biomethane is targeted toward sectors where it is most needed and electrification is not feasible, as in steel and chemical industries. Through better long-term planning and integrated network planning, biomethane production can be located closer to future users, lowering the costs for upkeeping of extensive gas networks. Likewise, with examination and decision-making, regulators may more equitably allocate the associated costs of biomethane injection.