Baltic Energy Market Interconnection Plan GRIP 2017

will introduce to the Finnish natural gas market structural changes. The structural changes in the proposed Act will be compatible with the requirements in the case of derogation removal. The main changes of the proposed Act are: \\ Implementation of European Network Codes as far as applicable \\ Establishing of an entry-exit system and Virtual Trading Point (VTP) \\ Establishing a national data hub

\\ Introduction of new balancing regime \\ Opening of retail market for competition \\ Removal of the wholesale gas regulation

\\ Third party access for biogas, LNG and gas supplied via Balticconnector, full third party access if derogation will be removed together with other implica- tions due to application third directive package fully. The Energy Authority (EA) supervises compliance with the Natural Gas Market Act and promotes the operation of a competitive natural gas market. EA also regulates the natural gas transmission services and a new regulatory regime was introduced in beginning of 2016 for a duration of eight years, i. e. two four-year regulatory periods. The regulatory regime resembles the previous one, but includes now the regulation of offgrid LNG terminals, where a third party access will be implied due to the national grants for the investments, this will apply to Pori/Skangas and Tornio/ Manga terminals which are under construction upon commissioning. The regulato- ry regime for natural gas transmission system is based on the WACC and regulatory asset base (RAB). RAB is calculated based on the rebuild value in the beginning of the period and straight-line depreciation of asset value according the expected lifetime and age. The regulatory regime includes, as earlier, the incentives for efficiency and security of supply, a new incentive was introduced for innovation. The regulatory regime was changed from post-tax to pre-tax methodology. Biogas production is steadily increasing in Finland and as a renewable energy, is supported by the energy policy. The total amount of biogas produced in Finland in 2014 was 155.5mcm  2) (in 0°C reference temperature) and 84,5% of the produced amount was utilised and the rest was flared. The total amount of energy utilised in 2014 as biogas was 613GWh at net caloric value, corresponding 681GWh at gross caloric value. From digestion, the amount of produced biogas was 61.5 mcm (in 0 °C reference temperature) and from landfills 94 mcm (in 0 °C reference tempera- ture). Gasum is one of the leading producers of biogas in Finland. Gasum has introduced biogas production facilities in conjunction with the natural gas transmission network so that biogas generated from biomass can, after processing, be fed into the trans- mission network and supplied to customers. In addition, Gasum acquired in 2015 two biogas production companies and today produces about 300GWh/a (at net caloric value) of biogas, wherefrom about 100GWh (at net caloric value) is injected to the gas transmission grid. Waste based biogas production potential in Finland is estimated to be about 15TWh/a and agriculture production based (field biomass and manure) biogas production potential is estimated to be additional 10 TWh/a. Furthermore, synthetic biogas can be produced using methods such as wood waste gasification. The future scenario for synthetic biogas in Finland could include few large bio-SNG facilities that are capable of producing approximately 5 TWh/a of energy.

3.3.6 OFFGRID MARKET DEVELOPMENT IN THE AREA OF LNG AND BIOGAS

 2) Finnish biogas register, http://www.biokaasuyhdistys.net/media/Biokaasulaitosrekisteri2014.pdf

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BEMIP Gas Regional Investment Plan 2017