Dr. Stefan Rauh studied agricultural sciences at the Technical University of Munich. His studies focused on crop production and economic analyses in the field of renewable energy. He then earned his doctorate with a dissertation titled „Competition for Biomass—Deriving the Optimality of Land Use for Food Production versus Energy Biomass Production.“ In late 2009, immediately after completing his doctorate, he joined the Fachverband Biogas e.V. He has headed the Agriculture Division there ever since and has also served as managing director since June 2013.
1 Dear Dr Rauh, what is the current status quo in the biogas sector compared to the last 10 years?
About 10 years ago, the biogas industry hit rock bottom. With the 2014 Renewable Energy Act (EEG), subsidies were drastically reduced, and the construction of new plants was limited to a few small-scale manure-based facilities. At the time, policymakers made it clear that they had no use for biogas. Since then, a slightly positive trend has emerged. For example, since the 2017 EEG, there has been an option to extend support beyond the initial 20-year period. In the biomethane sector, framework conditions have been established in both the fuel and heat sectors that encourage new concepts. However, we are still far from a boom phase. Broad political support is lacking for this.
2. Biogas plants—particularly flexible biogas plants—are frequently cited as the ideal complement to the intermittent power generation from wind and solar photovoltaic systems. They are expected to be capable of covering a very large portion of the required residual power generation. How great is the potential of the biogas industry, and how do we bring it to market?
When biogas is used to generate electricity, this must be done flexibly. This is required by policymakers and, in our view, is also the key to sustainable power plants. The initial key points of the power plant strategy established that Germany needs secure capacity, regardless of how much wind and solar power is installed. So-called “hydrogen-ready” power plants are intended to take on the task of stabilizing the grid. In the first phase, 10 GW is to be put out to tender. The biogas industry can also provide this level of capacity by 2030. If the framework is appropriate, 12 GW could be provided by 2030 and as much as 24 GW by 2040. To achieve this, the tender volume must first be increased to this level, and the flexibility premium must be adjusted to the current cost structure. This is cheaper, faster, and more climate-friendly than first building fossil-fuel-fired gas power plants.
3. Are plant operators aware of the value of their flexibility for the energy transition? How is the contribution of biogas plants valued overall?
Since late 2021—that is, even before the war in Ukraine—electricity exchanges have been sending price signals, making it possible to generate additional revenue through flexible driving. Even after the period of high prices caused by the war, daily fluctuations remain clearly noticeable. Since the beginning of spring, with more hours of sunshine, prices have been very low around noon and rise—sometimes significantly—in the evening. This is where the biogas industry can play to its strengths.
On the other hand, many operators do not fully appreciate the value of the reliably generated electricity and the additional heat provided. The ongoing debate surrounding biogas and the lack of political commitment are deterring investment. And such investment is necessary to keep the plants up to date with the latest technology.
4. Are the political conditions sufficient to support the rapid expansion of the biogas industry? Or, what else needs to be done?
As mentioned at the outset, the EEG—under which more than 90 % of Germany’s facilities operate—is not a suitable foundation for expanding the biogas industry. The tender volumes and flexibility premiums must be adjusted so that existing facilities can evolve into flexible storage power plants. Furthermore, rapid grid connection and faster, simpler permitting processes are needed. Like all industries, the biogas sector is also hampered by excessive bureaucracy.
This also applies to the biomethane sector, where significant growth is evident and numerous grid connection applications are being submitted.
5. Thank you very much for taking the time to answer our questions! If you could rethink the biogas industry, what would you change?
The biogas industry developed very well in the 2000s thanks to the EEG, though in some cases perhaps too quickly. This led to political countermeasures that no longer allowed for a unified vision. Even today, the federal government is debating in the National Biomass Strategy exactly where biogas can and should best be used. The flexible use of biomethane is now the federal government’s goal—something that was ruled out in 2014.
Perhaps the industry should have provided clearer guidance in the 2010s on how it envisions its own future. As an association, we now want to make up for that. We want to work out what a path forward for the coming years might look like.
