The German Renewable Energy Act (EEG) of 2000 succeeded in boosting development of renewable energy such as solar and wind power. The feed-in tariffs guaranteed a fixed income for electricity producers, thus attracting investors, and helped the industries grow exponentially. In late September, Germany published the new Climate Package. The goal is a reduction in CO2 emissions by 40% by 2020 compared to 2009, and by 55% by 2030. With such ambitious targets, it might be assumed that Germany implemented a biomass cofiring strategy, too. However, that’s not the case.
While other European countries such as the U.K., Netherlands, Belgium and Denmark subsidize cofiring, Germany is lacking feed-in tariffs for wood pellets and other biomass in coal plants.
Additionally, the CO2 price (EUA-Future)—an important lever for substituting fossil fuels with renewable energies—averaged the past 12 months at approximately 25 euros per ton (EUR/t). Experts point out the price for CO2 certificates should range between 50 and 130 EUR to be effective. The German Climate Package, however, sets the price at 10 EUR/t from 2021, with a systematic increase to 35 EUR/t by 2025. Unfortunately, this strategy does not support cofiring of biomass in coal power plants at all. If it did, demand would be substantial: At a cofiring ratio of 10%, Germany’s demand for wood pellets would exceed 7 million tons annually.
Read the complete article here: Biomass Mag