IN Brief:
- The Bundesnetzagentur awarded 318.676MW through 244 successful biomass bids in its October auction.
- Submitted capacity totalled 442MW against an offered 617MW, triggering a statutory reduction in awards.
- Existing installations seeking continued support received 76% of awarded capacity, with new facilities accounting for 24%.
Germany’s Federal Network Agency (Bundesnetzagentur) has awarded approximately 319MW of biomass electricity capacity following its October 2026 auction, with insufficient submitted capacity prompting a statutory reduction in the volume eligible for financial support.
The competition offered 617MW of capacity but attracted 328 bids representing a combined 442MW. The regulator published the results on 3 November, confirming that participation had again fallen below the volume available through the renewable electricity support programme.
Following the exclusion of 39 bids, the agency accepted 244 bids totalling 318.676MW. The resulting allocation represented approximately 52% of the original auction volume, leaving a substantial difference between the capacity initially offered and the amount ultimately awarded.
The shortfall affected the award procedure because Germany’s applicable rules restrict allocations in an undersubscribed biomass auction. Successful bids were limited to 80% of the total capacity represented by admissible bids, preventing the regulator from awarding every eligible submission when participation fell below the available volume.
This provision distinguishes the biomass result from an ordinary competition in which all admissible bids might receive support because the offered volume exceeds demand. The reduction was determined by the statutory auction mechanism rather than a subsequent decision to cancel individual generating projects.
Successful bids were priced between 13.95 and 19.80 euro cents/kWh, with a volume-weighted average of 18.75 euro cents/kWh. The auction operates on a pay-as-bid basis, so accepted participants receive the support value attached to their individual bids rather than a uniform price.
Lower Saxony received the largest allocation, with 85MW distributed across 66 successful bids. Bavaria followed with 61MW through 46 awards, while Schleswig-Holstein secured 40MW across 21 bids.
North Rhine-Westphalia received a further 33MW through 15 successful bids. The regional distribution reflects a portfolio of generating installations with differing capacities and operating circumstances, rather than a small number of large centralised power stations.
Existing biomass facilities accounted for 76% of the capacity awarded, with new installations receiving the remaining 24%. The substantial share allocated to established plants reflects the programme’s role in providing continued support for generating assets approaching the end of previous remuneration arrangements.
An operating biomass facility has ongoing requirements for fuel procurement, plant maintenance, staffing, and equipment replacement. Continued financial support can influence its commercial ability to maintain generation, particularly where revenues from electricity production alone are insufficient to cover its operating and reinvestment requirements.
New installations face additional expenditure associated with construction and the establishment of fuel handling, generating equipment, environmental controls, and network connections. Their financial characteristics consequently differ from existing plants that already possess much of the infrastructure required for electricity production.
Biomass generating equipment encompasses several technical approaches. Solid biomass can be burned to produce heat for steam generation, while biogas can be used in suitable engines or other generating systems. The conversion equipment, fuel requirements, and operating flexibility depend on the technology selected.
Plants using combustion and steam generation must manage the transfer of thermal energy through boilers and steam systems before mechanical power is converted into electricity. Their operating performance is affected by fuel characteristics, thermal conditions, maintenance requirements, and the permissible operating limits of the generating equipment.
Biogas installations introduce different requirements. Gas production and handling arrangements must maintain a suitable fuel supply, while engine performance depends on the fuel composition, combustion conditions, and the operating characteristics of the generating equipment.
Some biomass plants also provide combined heat and power, delivering useful thermal energy alongside electricity. Their operating schedules may be influenced by the requirements of connected heat users, creating a relationship between electrical generation, thermal output, and the availability of fuel.
The ability to schedule electricity production distinguishes controllable biomass generation from weather-dependent technologies. A biomass plant can potentially vary output in response to electricity requirements, provided its generating equipment, fuel arrangements, and operating obligations allow the necessary changes.
Actual flexibility differs between installations. Minimum stable loading, start-up times, thermal inertia, and the need to maintain heat supplies can constrain the speed and extent of output adjustments. The electricity system contribution of an individual plant must therefore be assessed against its technical capabilities.
Connection infrastructure introduces further operating requirements. Generators must deliver electricity through suitable transformers, switchgear, protection, and metering equipment, while control systems maintain operation within the voltage, frequency, and power export conditions established by the network operator.
Continued support for existing facilities can preserve electricity generation capacity without requiring entirely new generating sites. Maintaining that capacity still depends on equipment condition, available feedstock, environmental compliance, and the operator’s ability to undertake maintenance and replacement work.
The latest auction results show a repeated shortfall in submitted biomass capacity relative to the offered volume. Although the regulator confirms that previous rounds were also undersubscribed, the October figures do not establish the commercial or technical reasons why individual developers chose not to participate.
New installations nevertheless accounted for almost one quarter of the awarded capacity. The regulator notes that their participation has increased across recent bidding rounds, introducing additional generating projects alongside the established facilities receiving continued support.
The October allocations provide financial support for 244 successful bids representing approximately 319MW. Existing plants must continue meeting their operating obligations, while new projects will need to complete their remaining development and commissioning activities before adding generation to Germany’s electricity system.
