The energy transition in Germany faces a setback: many older biogas plants, which fall out of the EEG funding after 20 years, are currently not receiving any follow-up compensation. Recently, two out of three plants did not receive contracts in the nationwide tenders.
In Baden-Württemberg alone, ten plant operators are now planning to shut down their facilities. According to a survey by the Biogas Association, nearly 90 operators nationwide are considering the same. To avoid this impending shutdown, the Platform for Renewable Energies Baden-Württemberg (PEE BW) and the Biogas Association are urging the federal government to increase the tender volumes from the current twice-yearly 250 megawatts to a total of 1,800 megawatts.
Biogas offers an alternative for switching from natural gas to climate-friendly energy sources and is cheaper than green hydrogen. Biogas heat is used in many municipalities and is an important element of municipal heating planning.
Biogas plant operators who participate in a tender can receive a new feed-in tariff for a further ten years after the end of the 20-year compensation period under the Renewable Energy Sources Act (EEG). The problem: the legislator has kept the tender volume small. In the first half of 2024, a total of 788 bids were submitted for the advertised biomass volume of 240 megawatts of installed capacity, amounting to 742 megawatts. Over 500 biogas plant operators again did not receive a contract.
Numerous Shutdowns Threatened
The Biogas Association surveyed its members about their participation in tenders and the potential consequences of a negative decision. Of the nearly 3,200 operators, 540 participated in the survey – about 17%. The results: 212 operators had participated in a tender once or multiple times.
So far, only 42% have received a contract. 88 operators now plan to shut down their plants – this is 16% of the respondents. For 151 biogas plants, the end of the EEG compensation period also means the end of heat utilization – more than a quarter. They will only sell electricity in the future.
Of the 540 biogas plants, 89% use heat. The recipients of biogas heat include over 21,000 households, 51 swimming pools, 124 schools and kindergartens, 82 gymnasiums, 54 nursing homes or hospitals, and 206 other users (barns, drying facilities, etc.). Extrapolated to the 9,900 biogas plants in Germany, this means that nearly 390,000 households are connected to heating networks, over 1,000 swimming pools, nearly 2,500 schools and kindergartens, 1,640 gymnasiums, and over 1,000 nursing homes or hospitals.
