German government to reform state support for biomass electricity generation

Biomass could continue to play an important role in Germany's future energy system, economy minister Robert Habeck told dpa as reported by media house RND. He announced a new "comprehensive biomass package" to be presented soon, and said that especially during times of little wind and sunshine, biogas plants could be used flexibly. His ministry said that subsidies should favour biomass plants connected to a heating network, or those that generate electricity only when needed, wrote Handelsblatt.

Biogas plants can be fed with forestry and agriculture waste, for example. Twenty-year-long subsidies are coming to an end for operators who started receiving them in 2004. "The interest in tenders for subsequent funding is much greater than the supply," RND wrote. "Many system operators and their heating customers are worried about their future," an economy ministry spokesperson told dpa. "We recognise these concerns." Industry lobby association HBB had in the past warned that Germany’s bioenergy plant fleet was at risk of shrinking as many operators lacked a perspective for economically viable operations.

Bioenergy has played a major role in the Energiewende to date, not just contributing to renewable power, but in heating too. Biomass covered 15 percent of Germany's renewable electricity generation in the first half of 2024. The government has set the target to cover 80 percent of Germany's electricity consumption with renewable sources by 2030.