Baltic Energy Market Interconnection Plan GRIP 2017

4.2.2 CONSOLIDATION OF THE DANISH GAS INFRASTRUCTURE

Currently, a consolidation of the Danish gas infrastructure is taking place. Energinet.dk acquired the gas storage facility Stenlille in 2014  3) and 30 September 2016 took ownership over one of the four gas distribution companies in Denmark (DONG’s dis- tribution grid). Moreover, Energinet.dk is obliged to acquire DONG’s offshore gas pipeline from the North Sea Platforms to the mainland (and the corresponding oil pipeline in the North Sea). At the time of writing, negotiations are still on-going.

4.2.3 BIOGAS INFRASTRUCTURE DEVELOPMENT 2016 is expected to undergo the largest increase in biogas production. At the current rate, production is expected to exceed 2,500GWh, of which more than one-third will be upgraded to biomethane and injected into the natural gas network. In compari- son, the total production in 2012 was 1,200GWh, which was nearly all used for production of electricity and heat. This trend is expected to continue with an esti- mated total production of approx. 4,200GWh in 2020, where more than 1,500GWh is expected to be upgraded and injected into the natural gas network.

%

kWh

Biomethane injected into the Danish natural gas grid

6.00 5.00 4.00 1.00 2.00 3.00 0 7.00 8.00 9.00

90,000,000 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000

0

10/2014

10/2015

12/2014

06/2014

08/2014

06/2016

12/2015

04/2014

02/2014

06/2015

08/2015

12/2013

04/2016

02/2016

04/2015

02/2015

Injected biomethane (KWh)

Injected biomethane compared to the total consumption in DK (%)

Figure 4.3: Historical development of biomethane injected into the Danish natural gas grid (Source: Energinet.dk)

Biomethane infrastructure – upgraded biogas injected to the grid – is developing rather rapidly in Denmark, see figure 4.3. By July 2016, 18 plants have been interconnected since 2014 and a number of other plants are to be connected. One biomethane plant is connected directly to the transmission grid while the rest are connected at the distribution grid level. The Dan- ish Energy Authority estimates that biomethane in the grid could reach 5% of total Danish gas consumption by 2018. In a limited number of distribution grids injection of biomethane will exceed local gas consumption during summer breaks if current trend is continued. This development will call for new market – or technical solutions (e. g. flexibility services or reverse flow plants).

 3) Following the purchase of the Stenlille storage facility, both Danish storage facilities are now owned by Energinet.dk as a separate commercial company – Energinet.dk Gas Storage.

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BEMIP Gas Regional Investment Plan 2017