To flexibilise or not to flexibilise?

That is the question for biogas plants.

That is (here) the question for biogas plants.

Although biogas plants are not concerned with the very dramatic question of being or not being that drives Shakespeare's Hamlet, the events of the past year certainly had the potential to pose an existential threat.

Discussions about retroactive profit levies coupled with price increases in the fuel sector have really spoiled the future prospects of many a plant operator.

Where investment should be taking place - investment on which the energy transition depends - a lack of planning certainty and confidence has spread. Flexible biogas plants are one of the types of power plant that are most likely to be able to replace the flexible power generation of gas-fired power plants. From the perspective of the electricity system, they fulfill the same purpose - they step in when wind and sun cannot provide sufficient energy. This function is not only essential for security of supply, but also for grid security.

In this respect, the further flexibilization of the biogas sector must not be slowed down, but rather promoted to the maximum. To this end, confidence in the existence of an investment-friendly framework and the guarantee of sufficiently long planning horizons are essential. This is precisely what the discussions about retroactive profit skimming in the biogas sector have failed to create and have also disturbed operators' trust in the state.

Fortunately, politicians have largely recognized the value of flexible biogas plants and exempted most plants from the levy on profits from flexible driving - but not all.

However, efforts to further incentivise flexibilisation in all sectors are increasingly evident in the political actions of the governing parties.

Even though market activity has normalized and prices on the electricity exchange have fallen, the market has remained highly volatile, as the price fluctuations reflect the accelerated expansion of the wind and photovoltaic segment. If - contrary to the forecast - available renewables are offered to the market at short notice, market prices fall. In the event of low availability, prices rise. These fluctuations are a major challenge for security of supply and grid stability. At the same time, they form a hurdle for energy-intensive companies to demand more renewables, as they stand in contrast to the planning security for the production of their products.

Here, flexible biogas plants form an important bridge to the success of the energy transition. This importance will increase in the future with the increasing expansion of renewables and the progressive phase-out of conventional generators. Flexibilization for biogas plants and their further development into a storage power plant are therefore economically viable options and excellent prospects for the future.