Political uncertainty weighs on Germany's biogas sector - report

Aug 13, 2013 - Installed biogas capacity in Germany has fallen to 250 MW per year, or by 80% in comparison with 2011, amid political uncertainty for the sector.

The German biogas sector is over the last years burdened by rising prices and different political decisions and now the sector players wish for reliable frame conditions, German sector researcher Internationales Wirtschaftsforum Regenerative Energien (IWR) reported yesterday.

The report referred to the latest changes in the country's renewable legislation, under which feed-in tariffs have been lowered and various additional premiums removed. Furthermore, the prices of agricultural products have been on the rise lately. Therefore, decreasing sales and job cuts are not an exclusion in the sector any more. The amendments of the regulations are expected by an unnamed sector insider to lead to a definitive standstill in new biogas facilities construction as of the spring of 2014.

According to experts, the uncertainty in terms of political decisions, the constant changes in the legislation and the bonus programmes are a stumbling block for Germany's energy transition. Moreover, some sector players think that the focus is put more on electricity supply, while heat is not getting the necessary attention.

However, despite the difficulties, the sector participants are trying to continue their business - some try to develop new models and to adapt to the market changes. At the same time, others are increasingly focusing on foreign markets, with Great Britain, France and Italy being especially interesting. Activities such as waste management and biomethan feed-in are also offering growth chances.

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