Germany announces tenders for more than 1 GW for biomass and biomethane

The German Federal Network Agency (Bundesnetzagentur) announced on 27 February 2026 tenders for bioenergy support with a total capacity exceeding 1 GW. They comprise 726.7 MW for biomass and 300 MW for biomethane. Bids can be submitted until 1 April 2026, and the required permits must be held by 4 March. The most important change concerns biomethane, for which the price cap was raised after a round without bids.

Details of the tenders

The price cap for biomethane rose by 10% to EUR 0.2313/kWh – a direct reaction to the fact that no bid was submitted in the 2025 round, which was taken as a signal that the previous ceiling was too low to cover costs. The price caps for biomass are EUR 0.1943/kWh for new installations and EUR 0.1983/kWh for existing ones. The tenders are held under the updated biomass support framework, which the European Commission approved in 2025. The source does not give a breakdown of biomethane into new and existing installations or additional criteria.

Why it matters

Germany, which has the largest number of biogas plants in Europe, is going through a wave of expiry of support for the first generation of installations. The biomass package announced in 2024 envisaged rewarding installations tied to heat and flexible ones. The biomethane tender is a separate track for installations producing gas instead of electricity. The absence of bids in the 2025 round shows that the level of support must reflect costs: a price cap set too low results in a lack of interest and delays to investment.

Significance for the industry in Poland

Poland is preparing auctions for biomethane above 1 MW. The German experience is a warning on setting reference prices: an overly cautious ceiling risks an empty auction. For Polish investors it is also information on cost levels – the German cap of EUR 0.2313/kWh corresponds to about EUR 231/MWh, that is many times more than the market price of natural gas. For German operators of existing biogas plants the tenders mean a chance to continue operating.

What to watch

The tender results will reveal whether the raised cap attracts bids. For market observers it will matter how many bids were submitted for biomethane and at what prices, and whether rising equipment and financing costs allow projects to be delivered on time.