Germany’s bioenergy plant fleet is at risk of shrinking because many operators lack a perspective for economically viable operations, industry lobby association HBB Bioenergie has warned.
The huge oversubscription of bids in the latest bioenergy plant auction in the country has shown that many operators urgently desire a reliable footing for continued operations, as the vast majority of bids had been submitted for existing installations, according to HBB head Sandra Rostek.
In the latest auction for bioenergy, bids exceeded the auctioned volume threefold, meaning many of the submitted bids could not be accepted. Successful bids on average secured a guaranteed support level of 18.2 cents per kilowatt hour.
Adding that the auction results were a "real shock", Rostek said policymakers should view them as a call for action.
“The current framework for biomass in the Renewable Energy Act 2023 lead into a dead end and carelessly put dozens of terawatt hours of electricity and heat from biomass as well as the future of many new plants in jeopardy,” said Rostek.
Hundreds of installations for which operators tried to secure guaranteed support for the next ten years in the auction continue to lack a clear perspective, she continued.
Auctioned volumes should be increased instead of lowered in the next years, as is currently planned, added Rostek.
Biomass is Germany’s most important renewable energy source, accounting for nearly 9% in primary energy consumption in 2022.
HBB Bioenergie: Germany’s biogas sector is at risk due to lack of support
