The European Commission has approved amendments to Germany’s renewable energy support scheme, increasing funding for biomass and biogas projects by €7.9 billion (€9.3 billion in updated budget terms).
The changes will raise the tender volume for biomass projects, introduce a dedicated quota for biomass installations connected to heating networks, and limit the hours of electricity production from biogas eligible for support.
Payments for flexible electricity production will also increase, while older installations will have a shorter transition period to move to the new support framework, the Commission said.
The approval was granted under EU state aid rules, with the Commission concluding that the measures are necessary to boost electricity production from biomass and biogas.
The aid is considered proportionate, as it will be restricted to the minimum incentive required, even amid periods of high electricity prices.
Minister for Economic Affairs and Energy Katherina Reiche highlighted the importance of bioenergy to Germany’s electricity system.
“Bioenergy has a future and an important role in the country’s electricity system,” she said, noting that the state aid package provides investment security for around 2,500 plants nationwide.
The new regulations also encourage biogas plants to operate more flexibly within the electricity market. For 2025, the biomass tender volume has been raised to 1,300 MW, with 813 MW available in the upcoming October tender.
Industry groups have welcomed the move. The Renewable Energy Association of North Rhine-Westphalia (LEE NRW) had urged the government to secure rapid approval in Brussels, warning that delays could jeopardise more than 252 MW of biogas plants.
Germany’s Federal Network Agency recently awarded 244 projects totalling 187.3 MW in a highly oversubscribed biomass tender, demonstrating strong demand for the support programme.
European Commission approves €7.9bn German state aid for biomass and biogas
