Federal Minister of Economics terminates funding for flexible biomass plants

Federal Minister of Economics terminates funding for flexible biomass plants
The importance of biomass in the German energy system: A look at future potentials
Berlin, August 19, 2024: The Federal Minister of Economics Robert Habeck announced significant measures to promote the biomass last Sunday. This Initiative marks a crucial step in the right direction to increase flexibility in the German energy sector. The President of the Federal Association of Renewable Energy (Bee), Dr. Simone Peter, emphasizes the importance of the biomass to compensate for the fluctuations in wind and solar energy.
In the first six months of 2024, biomass systems contributed 9.6 percent to electricity production in Germany. However, this number shows that the potential of this technology remains largely unused. A main obstacle to the growth of the biomass is the insufficient volume in the tenders of the Federal Network Agency. Peter explains that the first tender for biomass plants was again highly exaggerated this year. This meant that many plant operators have not received the contract.
dr. Peter describes the announced greater support for flexibly producing bioen energy systems as a promising approach to expand the necessary flexibility in energy supply. This type of funding could prove to be an effective instrument to further expand the flexible backup of bioenergy, which is not only climate -friendly, but also more cost -effective than other options.
Bioenergy not only plays a role in electricity production, but also in heat supply and as a raw material supplier. "It is high time to act," says Peter. She warns that many operators are in a critical situation; Due to the current legal framework, many plants could lose their business capability in the foreseeable future. Therefore, the government must act quickly and specifically to counteract these developments.
Peter demands that concrete legal changes will be taken promptly in order to avert the impending end for numerous bioen energy systems. "The reality of a renewable energy mix requires urgent measures. We need a clear perspective for bioenergy," she emphasizes.
The discussion about the future role of biomass in Germany's energy system is of great importance because it sets the course for a future -proof energy mix. It remains to be seen how the Federal Government reacts to the challenges of the energy transition and what specific steps are taken to strengthen the biomass as an indispensable energy source.