The European Commission has approved a €7.9 billion budget increase to Germany’s State aid scheme for electricity production from biomass and biogas, under EU State aid rules.
The scheme, first approved in December 2022, is designed to support renewable energy production and encourage greater flexibility in the German power market.
The amendment will expand the tender volume and introduce a dedicated quota for biomass installations already connected to district heating networks.
It will also restrict the hours of biogas electricity generation eligible for support, shorten the transition period for older installations to join the revised biomass support scheme, and raise payments for flexible electricity production.
Following its assessment under Article 107(3)(c) TFEU and the EU’s Guidelines on State aid for climate, environmental protection and energy (CEEAG), the Commission concluded that the amendments are both necessary and proportionate.
The scheme is expected to incentivise higher levels of renewable energy generation while minimising distortions to competition and trade within the EU.
The non-confidential version of the decision will be published under case number SA.118542 in the Commission’s State aid register once confidentiality matters have been finalised.
EU clears €7.9 billion expansion of German biomass support programme
