The German Federal Ministry of Economics has unveiled a comprehensive biomass package aimed at promoting the continued use of biogas in the country’s energy system.
According to Federal Economics Minister Robert Habeck, biogas can play a crucial role in Germany’s future energy mix, particularly in situations where wind and solar power are not generating electricity. The reform is designed to reduce the cost of receivables and ensure a more sustainable and efficient use of biomass.
Biomass has been a significant contributor to Germany’s renewable energy sector, with 9% of the country’s total electricity consumption generated from biomass in the first half of this year. The sector has seen significant growth since 2004, with innovative projects emerging to convert climate-damaging liquid manure into electricity and build heating networks.
However, concerns have been raised regarding the demand for biomass after 20 years, with interest in tenders for subsequent demand exceeding supply. To address these concerns, the Ministry plans to prioritize plants connected to heating or building networks, while those that produce flexibly according to demand will receive more attention.
The proposed reform will also introduce a new payment system, where money will only be paid for times of day when electricity is needed. Additionally, plant operators who wish to switch from the old demand system to the new one will be able to do so during ongoing demand periods.
The comprehensive biomass package is expected to become part of the planned reform of the Energy Industry Act, aimed at enhancing the country’s renewable energy sector and promoting a more sustainable use of biomass.
