Germany: biomass tender of 1 April 2025 — 187 MW, bids for almost three times the volume

The German regulator announced on 18 June 2025 the results of the tender for electricity from biomass with a bid deadline of 1 April 2025. Awards went to 244 bids totalling 187 MW, out of 685 bids for 543 MW submitted, almost three times the volume. The weighted average winning price was 16.53 ct/kWh.

Results in figures

The average price therefore fell relative to the previous round by about 0.8 ct/kWh, or less than 5%. With such demand the fall is understandable: when there are almost three times as many bids as places, generators compete on price just to get an award at all.

Who won

The vast majority of awards went to existing installations seeking another support period after the end of the first, 20-year one. There were 242 such awards, totalling 187 MW (regulator data, after rounding). Only 8 new installations were submitted (5 MW in total), and 2 of them received awards, about 0.3 MW altogether. This confirms a trend visible for years: the German auction system for biomass works as a mechanism for extending the life of existing biogas plants, not as a tool for expanding capacity.

The biomethane tender, held in parallel, ended with no bids at all. The Bundesnetzagentur announcement indicates that again no bids were received in this tender; it does not give the reasons.

Why the volume was only 187 MW

The volume of the April 2025 tender was low because the package of EEG amendments concerning biomass (the so-called Biomassepaket), agreed in parliament in early 2025, still required the consent of the European Commission for the granting of state aid. Until approval the previous rules applied, and only 187 MW could be allocated to the tender. The new rules were to apply only from the next deadline, 1 October 2025, subject to obtaining the Commission's consent.

What this means for the market

For operators it is a clear signal that far more installations are fighting for further support than the system can handle. In practice this means that some biogas plants that did not receive an award must prepare a bid for the next deadline or look for other models: selling electricity on the market with flexible operation, switching to biomethane or, in the extreme case, ceasing operation. For entities considering investment in new capacity the result is hardly encouraging — with 2 awards for new installations it is hard to speak of a stable development path.

At an exchange rate of approx. PLN 4.25 per euro (indicative, June 2025) the average of 16.53 ct/kWh corresponds to approx. PLN 700/MWh.