Biomass auction significantly undersubscribed, industry worries over climate targets

There was very little competition in the latest round of auctions for biomass facilities in Germany, which has the bioenergy industry “increasingly worried” it will not be able to do its part to reach climate targets. From a total of 168 megawatts (MW) tendered, 38 bids for a combined capacity of some 90 MW were successful, the Federal Network Agency (BNetzA) said in a press release. The results threaten “bioenergy’s essential contribution to the climate targets,” the German Biogas Association (Fachverband Biogas) said in a press release. “This is once again a clear signal that the tendering conditions do not cover the costs of the companies,” Sandra Rostek, the group’s Berlin office head, added. The association is calling for a 10 percent increase in the maximum bid price.

Following the introduction of feed-in tariffs for renewables in 2000, bioenergy plants sprang up like daisies across the country, providing a climate friendly source for power that’s independent of the weather. At the same time, it has helped to green the heating sector. Farmers have enthusiastically taken to bioenergy as a profitable sideline, and some rural communities have enjoyed its economic benefits.