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German biomass tender awards 243 MW at reduced prices

Germany’s Federal Network Agency has allocated 243 MW of projects for biomass-fired power plants in its latest tender round, which saw significant oversubscription and a decrease in average prices, reported Renewables Now.

The competitive round attracted 788 bids totaling 742 MW, more than three times the target volume of 240 MW. The agency reported on Thursday that eight proposals totaling 11 MW were for new plants, while 780 bids with a combined capacity of 731 MW were for existing systems. There were no bids for biomethane projects, and 36 bids were excluded from the competition.

A total of 263 projects were awarded, with 257 related to operational plants. The winning projects secured prices ranging between EUR 0.1416 (USD 0.1497) and EUR 0.1848 per kWh, resulting in an average volume-weighted value of EUR 0.1780/kWh, down from EUR 0.1828/kWh in the previous round.

Bavaria secured about a third of the successful projects, with 127 contracts totaling 90 MW. Lower Saxony and Baden-Wurttemberg followed with 50 MW and 33 MW of winning schemes, respectively.

The outcome of the tender underscores the challenges faced by the biomass industry due to insufficient financial incentives. Many existing plants will now seek to renew their support contracts after their initial terms expire. Additionally, the withdrawal of biomass from the EEG subsidy regime may lead to closures of biogas facilities unable to secure new contracts, potentially jeopardizing the energy transition, cautioned Sandra Rostek, head of the Capital Office for Bioenergy.

The next tender for biomass-fired capacity is scheduled to launch on October 1.

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