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A model-based analysis of the future capacity expansion for German biogas plants under different legal frameworks

Author

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  • Balussou, D.
  • McKenna, R.
  • Möst, D.
  • Fichtner, W.

Abstract

As for other renewable energy sources in Germany like wind or photovoltaics, biogas has rapidly expanded in the past fifteen years. The installed electricity capacity for German biogas plants increased from 0.2 GWel in 2001 up to about 4.2 GWel by the end of the year 2016. This expansion has been supported in particular by the Renewable Energy Sources Act (EEG) through electricity Feed-In-Tariffs (FITs). However, major uncertainties are linked to the future capacity expansion in particular due to volatile electricity and energy crops prices. Taking into account this situation this paper analyzes possible future developments of the German biogas plant capacity up to 2030. For this purpose, a regional optimization model is employed, with the objective of determining the optimal economic development of the future biogas plants under different legal framework conditions. The base scenario with a constant energy crops cost evolution shows that the EEG 2012 framework -if maintained- would have fostered the development of agricultural plants, especially co-digestion plants valorizing energy crops and manure. The new EEG 2014 stops the expansion of energy crops mono-digestion plants, which will no longer be built due to an unprofitable situation. The German biogas market will thus face a paradigm shift and move towards the increase of biowaste and small-scale manure plants. Further scenarios quantify the impact of a strong variation of three main fundamental drivers, namely the energy crop costs, the EPEX-Peak electricity price and the biowaste valorization revenues, on future capacity developments. Based on the model results recommendations in direction of plant operators and policy-makers are formulated aiming at a more sustainable electricity production from biogas. Further work should consist in integrating the present analysis in national bioenergy models under the EEG 2017 legal framework.

Suggested Citation

  • Balussou, D. & McKenna, R. & Möst, D. & Fichtner, W., 2018. "A model-based analysis of the future capacity expansion for German biogas plants under different legal frameworks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 96(C), pages 119-131.
    • Handle: RePEc:eee:rensus:v:96:y:2018:i:c:p:119-131
    DOI: 10.1016/j.rser.2018.07.041
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    References listed on IDEAS

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    1. Gömann, Horst & de Witte, Thomas & Peter, Günter & Tietz, Andreas, 2013. "Auswirkungen der Biogaserzeugung auf die Landwirtschaft," Thünen Reports 10, Johann Heinrich von Thünen Institute, Federal Research Institute for Rural Areas, Forestry and Fisheries.
    2. Goemann, Horst & Witte de, Thomas & Peter, Guenter & Tietz, Andreas, 2013. "Auswirkungen der Biogaserzeugung auf die Landwirtschaft," Thünen Report 179196, Johann Heinrich von Thünen-Institut (vTI), Federal Research Institute for Rural Areas, Forestry and Fisheries.
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    Cited by:

    1. Lei Zheng & Jingang Chen & Mingyue Zhao & Shikun Cheng & Li-Pang Wang & Heinz-Peter Mang & Zifu Li, 2020. "What Could China Give to and Take from Other Countries in Terms of the Development of the Biogas Industry?," Sustainability, MDPI, vol. 12(4), pages 1-21, February.
    2. Barros, Murillo Vetroni & Salvador, Rodrigo & de Francisco, Antonio Carlos & Piekarski, Cassiano Moro, 2020. "Mapping of research lines on circular economy practices in agriculture: From waste to energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 131(C).
    3. Venus, Terese E. & Strauss, Felix & Venus, Thomas J. & Sauer, Johannes, 2021. "Understanding stakeholder preferences for future biogas development in Germany," Land Use Policy, Elsevier, vol. 109(C).
    4. Susanne Theuerl & Christiane Herrmann & Monika Heiermann & Philipp Grundmann & Niels Landwehr & Ulrich Kreidenweis & Annette Prochnow, 2019. "The Future Agricultural Biogas Plant in Germany: A Vision," Energies, MDPI, vol. 12(3), pages 1-32, January.
    5. Briest, Gordon & Lauven, Lars-Peter & Kupfer, Stefan & Lukas, Elmar, 2022. "Leaving well-worn paths: Reversal of the investment-uncertainty relationship and flexible biogas plant operation," European Journal of Operational Research, Elsevier, vol. 300(3), pages 1162-1176.

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