That is (here) the question for biogas plants.
While biogas plants are not facing the very dramatic question of “to be or not to be” that haunts Shakespeare’s *Hamlet*, the events of the past year certainly had the potential to pose an existential threat.
The debates over retroactive profit skimming, coupled with rising fuel prices, have really dampened the future outlook for quite a few plant operators.
In the very areas where investment is needed—investment on which the energy transition depends—a lack of planning certainty and a lack of trust have taken hold. Flexible biogas plants are among the types of power plants best suited to replace the flexible electricity generation provided by gas-fired power plants. From the perspective of the power system, they serve the same purpose—they step in when wind and solar cannot provide enough energy. This function is essential not only for security of supply but also for grid stability.
In this regard, efforts to further increase flexibility in the biogas industry must not be hindered but, on the contrary, must be supported to the greatest extent possible. To this end, confidence in the continued existence of an investment-friendly framework and the assurance of sufficiently long planning horizons are essential. This is precisely what the discussions about retroactive profit skimming in the biogas industry have failed to achieve, and they have also undermined operators’ trust in the government.
Fortunately, policymakers have largely recognized the value of flexible biogas plants and have exempted most of them from having their profits from flexible operation taxed—though not all of them.
However, efforts to further incentivise flexibilisation in all sectors are increasingly evident in the political actions of the governing parties.
Even though market conditions have largely returned to normal and prices on the electricity exchange have fallen, the market remains highly volatile, as price fluctuations reflect the accelerated expansion of the wind and solar power sectors. If, contrary to forecasts, available renewable energy is offered to the market in the short term, market prices fall. When availability is low, prices rise. These fluctuations pose a major challenge to security of supply and grid stability. At the same time, they create a barrier for energy-intensive companies seeking to increase their use of renewables, as they conflict with the planning certainty needed for the production of their products.
Flexible biogas plants play a key role in ensuring the success of the energy transition. Their importance is expected to grow as renewable energy capacity expands and the phase-out of conventional power generation continues. Therefore, making biogas plants more flexible and developing them into storage power plants are economically sound options and offer excellent prospects for the future.
