Germany: Approved EEG reform causes disappointment across the biogas industry

Chancellor Angela Merkel’s cabinet approved on Tuesday, 08 April 2014, the revised Renewable Energy Sources Act (EEG), causing bitter disappointment across the biogas industry.

Days before the EEG was adopted, public statements on the part of the federal government announced improvements for the biogas sector, raising hope that the blueprint would take into consideration the concerns of the biogas industry. However, “the new start of the energy shift” advertised by Economy and Energy Minister Sigmar Gabriel was regarded as “the end for biogas” by Horst Seide, President of the German Biogas Association.

According to the German Biogas Association, the final bill contains only two improvements as compared with the initial draft: the forced partial demolition of existing installations that want to adjust their electricity supply in accordance with the electricity demand (the so-called “scrappage bonus“), as well as the announced withdrawal of the Clean Air bonus for existing installations. Both points were key demands raised by the German Biogas Association, whereas they do not represent substantial improvements for the industry. On the other hand, other parts of the bill remained unchanged or had deteriorated.

More information on the implications of the revised EEG for the biogas sector is available on the German Biogas Association website (in German).

Source: German Biogas Association