Germany's Federal Network Agency has allocated 243 MW of capacity to biomass-fired power plants in its recent tender, amidst a notable oversubscription that saw fierce competition among bidders. According to the agency, the competitive round attracted 788 bids totaling 742 MW, more than three times the targeted volume of 240 MW.
Of the awarded projects, 263 were selected, with the majority (257) involving existing operational plants. The winning bids secured prices ranging from EUR 0.1416 to EUR 0.1848 per kWh, marking a decrease from the previous average of EUR 0.1828 per kWh. Bavaria emerged as a key region, securing 90 MW across 127 contracts, followed by Lower Saxony and Baden-Wurttemberg with 50 MW and 33 MW respectively.
However, despite the robust participation, concerns linger over the adequacy of financial incentives within the biomass sector. “The tender outcome underscores the challenges facing the industry as existing plants prepare to renew their contracts,” noted Sandra Rostek, head of the Capital Office for Bioenergy. She further highlighted potential closures of biogas facilities, emphasizing their critical role in Germany's energy transition.
