Germany: what does an electricity generator from biogas and biomass receive? Overview of the EEG system in 2026

A larger German biogas plant or biomass power plant now receives support exclusively through a tender: the winning bid (the value to be applied, anzulegender Wert) is the price to which Germany tops up the difference relative to the market. In the last four rounds the weighted average winning prices ranged between 16.5 and 18.5 ct/kWh, that is, converted, between €165 and €185 per MWh. That is more than twice typical wholesale energy prices in recent years.

How the support works

The EEG system is based on a market premium. The generator sells electricity on the market or through an intermediary, and in addition receives from the grid operator a premium equal to the difference between the value from the bid and the monthly average market price for that source. If the market is high, the premium falls; if the market is low, it rises. Support lasts 20 years for new installations, and existing ones whose first period is ending can apply for a further 10-year period — the condition is winning a tender.

A bid cap applies to the tender, set by law or by a Bundesnetzagentur decision. In 2024 the regulator raised the cap for new installations to 19.43 ct/kWh and for biomethane to 21.03 ct/kWh; existing ones stayed at 19.83 ct/kWh (details). In 2026 the cap for biomethane rose by a further 10%, to 23.13 ct/kWh.

Results of recent tenders

The average price remains close to the cap for existing installations (19.83 ct/kWh). The rounds differ in volume. In April 2025 the tender had only 187 MW and was almost three times oversubscribed (discussion). In October 2025 it had 813 MW (discussion). In April 2026 it had 727 MW and was undersubscribed (discussion).

Flexibility premium

In addition to the tender price, a generator can receive a flexibility premium, which, after the European Commission approved the biomass package on 18 September 2025, is €100 per kW of installed capacity (details). It is an incentive to expand engines and gas storage so that the installation operates in hours when energy is paid at a higher price. The package also provides for a limit on the number of supported hours and a separate quota for installations supplying heat to a network.

Who it is for

• Existing agricultural biogas plants — the tender is a condition of continued operation after the 20-year support period ends; in recent rounds such bids made up the vast majority of awards.
• New installations — their share is small; in October 2025 they received 63 MW, in April 2025 only 0.3 MW.
• Biomethane — a separate tender; after rounds with no bids (including 1 April 2025), in April 2026 awards for 38 MW were made.

Comparison with the market

A weighted average of 18.46 ct/kWh is approx. PLN 785/MWh at an exchange rate of approx. PLN 4.25 per euro (indicative, June 2026). The biomass package was announced in 2024 (see the article), and the earlier shape of the system is described in the article on EEG 2021. Biogas in Germany is supported significantly above the market price, but in return the system expects flexible operation and compliance with conditions on maize and operating hours.

How to read these figures

The weighted average includes both new and existing installations, but because existing biogas plants receive the vast majority of awards, it mainly reflects the price at which the owners of older installations are prepared to operate for another decade. The lower bound of winning bids is often much lower: 12.34 ct/kWh in April 2025, 11.00 ct/kWh in October 2025 and 12.05 ct/kWh in April 2026. These are bids from low-cost installations, for example those with depreciated assets, which win even at a lower price. The rate paid to each winner is according to its bid, not the clearing price, so the spread between winners is real.

Biomass tenders take place twice a year, which gives generators a predictable rhythm: bids are submitted by 1 April and 1 October, and results are published after several months. Biomethane has its own dates (in 2025 and 2026: 1 April and 1 September). From an investor's perspective two elements are key: the number of bids relative to the volume (which determines whether the price approaches the cap) and the cap, which the regulator can change for the next twelve months.

What next

The next tenders: 1 September 2026 (biomethane) and 1 October 2026 (biomass). Watch volumes and the number of bids. These, not the price itself, decide how many installations will obtain further support. The impact on the biomethane market is described in the article Biomethane in Germany.