Solid biomass in Germany

General
For renewable electricity, the Renewable Energy Sources Act (Erneuerbare Energien Gesetz, EEG) came into operation on April 1st, 2000. It ensured independent power producers, either individuals or companies, to be able to deliver power to the electricity grid: grid operators were obliged to accept this power and to pay fixed tariffs to the producers: feed-in tariffs. The Act was revised in the year 2004 (August 1st, adopted on July 21st, 2004). For the year 2009 new amendments were made to the Act (adopted on June 6th, 2008). A feed-in tariff is guaranteed for 20 years for most technologies (only hydropower has a different period). In order to compensate for technology learning effects (through economies of scale and efficient production and conversion) the tariff is each year decreased with a certain percentage. The objective of the EEG is to increase the share of total power supply that is derived from renewables to at least 12.5 per cent by 2010 and at least 20 per cent by 2020. In 2020 renewable energies are to account for 14 percent of German heat consumption – more than twice as much as today.

Regarding renewable heating and cooling, the Bundestag adopted on 6 June 2008 a law on the promotion of renewable energies in the heat sector (Erneuerbare Energien Wärmegesetz, known as EEWärmeG). This law, which will take effect on January 1st 2009, obliges the owners of new buildings to cover a part of their heating needs from renewable energy. The law recognises solar energy, biomass, geothermal energy and ambient air heat. The obligatory part depends on the type of renewable energies used in the building. It is 15% for solar energy, 30% for biogas and 50% for all the others. Among these other renewables, biomass fuels (firewood, pellets, chips, etc.) can only be used in high-yield boilers that comply with air quality legislation. The owners can, if they so desire, combine several different sources of energy. A solar collector can in this way be completed by a wood pellet burning boiler. The EEGWärmeG law does not only consist of obligations. It also reinforces the program of development of the renewable energies market in allotting it €500 million per year up to 2012.

For biofuels, a law on biofuels (Biokraft-stoffquotengesetz) came into force on 1st January 2007, consisting of a partial taxation associated with a quota policy.

On November 7th 2007, the renewable energy law was evaluated and judged pertinent by the German Parliament. This evaluation is based on indicators of installed capacity, on the number of tons of CO2 prevented and on the creation of jobs. The Parliament’s report also recommended increasing the share of renewable electricity to 27% in 2010. The report also called on the adjustment of the feed-in tariff of certain technologies including onshore and offshore wind power. 

For deep geothermal drilling, the Environmental Ministry and other institutions have created a guarantee fund of in total 60 million euro, which is supposed to reduce project risk.

According to the Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources the target for the share of energy from renewable sources in gross final consumption of energy in the year 2020 for Germany is 18% (in the year 2005 the share was 5.8%). The Directive has a mandatory 10 % target for transport to be achieved by all Member States, which refers to renewable sources as a whole, not biofuels alone.

Renewable energy projections according to the National Renewable Energy Action Plan for Germany
The National Renewable Energy Action Plan (NREAP) for Germany was submitted in August 2010. The target according to Annex I of Directive 2009/28/EC is 18% for the year 2020 and the projected NREAP share in that year is 19.6%.  According to the projection, the most important contribution in the year 2020 is expected from biomass (renewable heating and cooling) (11355 ktoe, 29% of all renewable energy). Second important contribution is expected from wind power (104.4 TWh or 8980 ktoe, 23% of all renewable energy). The third largest contribution is from biodiesel (renewable transport) (4443 ktoe, 12% of all renewable energy). Wind power contributes with 45.8 GW (104.4 TWh) in the year 2020 (onshore wind 35.8 GW and 72.7 TWh, offshore wind 10.0 GW and 31.8 TWh). For solar photovoltaic the 2020 contribution is projected to be 51.8 GW (41.4 TWh). For solar thermal the 2020 contribution is projected to be 1245 ktoe. The two most important biofuels are projected to contribute 4443 ktoe (biodiesel) and 857 ktoe (bioethanol / bio-ETBE) by 2020. The renewable electricity production from solid biomass amounts to 24.6 TWh (2113 ktoe) and for biogas it is expected to be 23.4 TWh (2015 ktoe). The consumption of renewable heat is expected to amount to 8952 ktoe for solid biomass and 1692 ktoe for biogas.

Renewable heating and electricity: solid biomass
The German government agreed on 29 April 2009 on the National Biomass Action Plan. This document indicates which strategies should be followed in order to develop bio-energy efficiently and sustainably, and what measures need to be taken to achieve this. The action plan is divided into a main part and a technical appendix. The annex presents the current state of biomass use, and potentials and the various usage options (electricity, fuel, heat) are characterized and evaluated. Based on the annexes, the main part explores proposed actions for each area: heat, electricity and fuel production.

The tariff structure of the EEG for biomass in 2007 is presented in table below.

 As complementary to table above the following points should be made:

• For CHP plants using renewable feedstock a combination of boni is possible.
• Further bonus of 20-40 €/MWh is possible for specific innovative features.
• Reduction of tariffs takes place every year for new installed systems.

On 6 June 2008 the Bundestag adopted the Act on the promotion of renewable energies in the heat sector (“Erneuerbare-Energien-Wärmegesetz”, EEWärmeG). Owners of new buildings must cover part of their heat demand from renewable sources. The Heat Act recognises solar radiation, biomass, geothermal energy, and ambient heat. However, the Heat Act not only consists of obligations, it also provides options for incentives. The existing market incentive programme for the promotion of renewable energies was topped up again: until 2012, up to M€500 per year is now available for the programme.The Act will enter into force on 1 January 2009. All new buildings constructed after this date must comply with the Heat Act. All owners of new buildings must cover part of their heat demand from renewable energy sources. The share is specified according to which energy source is used: solar radiation, at least 15 percent, biogas, at least 30 percent, all others, at least 50 percent. The use of solid biomass also has to cover at least 50 percent of the new building‘s heat demand. However, pellets, wood chips and firewood may only be used in furnaces which comply with national provisions on air quality control and have a particularly high boiler efficiency factor. Every building owner can combine the use of different renewables. For instance, a solar collector can be supplemented by wood pellets. Alternative measures can also be used in combination with each other and with renewable energies.

Future programme changes expected
No information on future policy.

Sources
Held, A. et al.: Feed-in systems in Germany, Spain and Slovenia; a comparison. Karlsruhe, Germany, October 2007

http://www.erneuerbare-energien.de/inhalt/36356 (sourced October 2008)

Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources, http://ec.europa.eu/energy/renewables/transparency_platform_en.htm

Mindestvergütungssätze nach dem neuen Erneuerbare-Energien-Gesetz (EEG) vom 21. Juli 2004 (http://www.erneuerbare-energien.de, sourced January 2008)

Bundesministerium für Umwelt, Naturschutz und Reaktorsicherheit (BMU) leaflet, EEG - Das Erneuerbare Energien Gesetz - Die Erfolgsgeschichte nachhaltiger Politik für den Standort Deutschland, July 2007

Bundesministerium für Umwelt, Naturschutz und Reaktorsicherheit (BMU), The Renewable Energies Heat Act in brief,  http://www.erneuerbare-energien.de/files/pdfs/allgemein/application/pdf/ee_waermegesetz_fragen_en.pdf (sourced January 2009)

Bundesministerium für Umwelt, Naturschutz und Reaktorsicherheit (BMU), List of English documents concerning the renewable energies sector 16th legislative term, http://www.erneuerbare-energien.de/inhalt/36356 (sourced January 2009)

Strom und Wärme aus Biomasse mit neuer Gaserzeugungs-Technologie, http://www.erneuerbare-energien.de/inhalt/44687/4593 (sourced October 2009)

National Biomass Action Plan for Germany, April 2009, http://www.erneuerbare-energien.de/inhalt/43839/4593

Geothermie-Projekte bekommen Rückhalt, http://www.erneuerbare-energien.de/inhalt/43252/40727 (sourced October 2009)

The National Renewable Energy Action Plans (NREAPs) are all published on the Transparency Platform on Renewable Energy: http://ec.europa.eu/energy/renewables/transparency_platform/action_plan_en.htm (sourced July - December 2010)

Renewable Energy Projections as Published in the National Renewable Energy Action Plans of the European Member States, http://www.ecn.nl/nreap (sourced December 2010)

 Interactive EurObserv’ER Database
http://www.eurobserv-er.org
Last update: December 2010