Germany
Table 8: Key renewable and biomass energy statistics, Germany
Electricity from biomass |
Heating and cooling from biomass |
% of total energy |
||||||
---|---|---|---|---|---|---|---|---|
Mtoe |
% of total electricity |
% of ren electricity |
Mtoe |
% of total heat/cool |
% of ren heat/cool |
Biomass |
All renewables |
|
2009 |
0.82 |
1.6% |
9.5% |
7.22 |
6.9% |
74.5% |
3.8% |
9.9% |
2016 |
0.93 |
1.8% |
5.7% |
9.57 |
8.7% |
67.2% |
4.7% |
14.8% |
Annual average growth |
1.9% |
4.1% |
3.1% |
5.9% |
||||
2020 target |
18.0% |
Source: Eurostat SHARES database, http://ec.europa.eu/eurostat/web/energy/data/shares.
Note: Biomass as percentage of total energy does not include solid biomass used for transport fuel (volumes are not yet significant).
Demand for woody biomass
In absolute terms, Germany, the EU’s biggest economy and most populous country, was the largest consumer of biomass for total heat and power in the EU in 2016. It was the second largest consumer of heat from biomass, after France, and the second largest generator of electricity from biomass, after the UK. In proportional terms, however, biomass is less significant than in many other countries, partly because of the strength of other renewables, particularly wind and solar PV.
Wind is the main source of renewable electricity, supplying about 40 per cent in 2016; solar PV supplied about 20 per cent. Solid biomass accounted for only about 6 per cent of renewable electricity.107 Biogas, mainly sourced from agricultural crops (primarily maize) and animal wastes, supplied three times as much renewable electricity (33 TWh compared to 11 TWh). Germany has invested more in electricity generation from biogas than any other EU member state; in 2015, it accounted for more than half of total EU generation of electricity from biogas.108 (This has led to some concern about the impacts of sourcing mainly from agricultural crops, and from 2016 a cap was placed on the proportion of the feedstock deriving from crops.)
A large proportion of Germany’s demand for electricity is driven by industry, where renewables are fast replacing fossil fuel-based power generation.109 In contrast, the demand for heat is mostly driven by the residential sector. This demand is mostly met through natural gas and oil, though the share of renewables is increasing; in 2016, renewables contributed about 13 per cent of heat consumption, around two-thirds of which was supplied by solid biomass and a further sixth by biogas.110
Germany is on course to meet and exceed its EU renewable energy target of 18.0 per cent by 2020.111 Wind is expected to continue to be the main contributor to renewable electricity generation, though biomass will also play a role, mainly through combustion in CHP plants.112 The country has a long-term goal of generating 80 per cent of electricity from renewables by 2050, with interim goals of 40–45 per cent by 2025, and 55–60 per cent by 2035 (the 2015 figure is 31 per cent).113 In the heating sector, the use of renewables is expected to increase significantly, almost doubling compared to 2005 levels.114 Biomass will remain the largest contributor to renewable heat consumption, at a projected 80 per cent or more by 2020. Given the larger share of heat in final energy consumption, by 2020 biomass is expected to account for nearly two-thirds of the country’s renewable energy consumption.115
Biomass supply
Germany is the EU’s third largest producer of roundwood after Sweden and Finland – 52 million m3 in 2016 – most of which is used in industry.116 This includes over 9 million m3 of wood fuel, the EU’s second largest production volume after France.
Most of the wood used for power and heat is consumed in CHP plants, of which there were 640 using solid biomass by the end of 2013, a ten-fold increase since 2000.117 Figure 14 shows the feedstock used by these plants: mostly wood waste and forest residues. Many of the smallest plants (with a capacity of less than 1 MW of electricity) use wood gasification.
Figure 14: Biomass resources in solid biomass CHP plants in 2013
Solid biomass is also used in small to medium-sized heating systems, in households and commercial buildings; the feedstock is mainly logs (wood fuel), with much smaller amounts of wood pellets, chips and briquettes118 (see Figure 15). (Note that this suggests much higher consumption of wood fuel than the Eurostat figures of 9–11 million m3 per year recorded since 2010; it is likely that a significant volume of wood recorded under other headings by Eurostat is actually being used for energy.)
Figure 15: Use of wood for energy in private households
Wood pellets are primarily used in small to medium-sized heating stoves and boilers, which consumed in total about 2 million tonnes in 2013. Domestic pellet production has expanded rapidly since 2006 in response to this demand, and Germany is now the largest producer of wood pellets in the EU. About 60 pellet plants are in operation, mostly in the western and southern parts of the country, where large forested areas and wood-processing industries are located, with a capacity of about 3.3 million tonnes and annual production, since 2012, of about 2 million tonnes (1.93 million tonnes in 2016).119 In recent years, however, increasing competition and a fall in activity in the sawmill industry, leading to a shortage of feedstock for pellets, has led to the closure of some of the smaller plants and a fall in capacity and production. Pellet exports have fallen and imports have risen and in 2016 roughly balanced each other out (see figures 16 and 17). Trade in wood chips, where Germany is a net exporter, and residues, where it is a net importer, is larger, but neither form of woody biomass is necessarily destined for use for energy.
As noted above, demand for biomass for energy is expected to increase, particularly for industrial process heat and for CHP; projections to 2020 suggest domestic supply of biomass reaching 1,000 PJ of primary energy, with demand reaching about 1,400 PJ.120 Germany’s National Biomass Action Plan anticipates closing this gap by increasing the use of forest and industry residues that are not in competition with food production or other material uses and by increasing the production of energy crops.
Figure 16: Germany’s imports of woody biomass potentially for energy, 2010–16
Figure 17: Germany’s exports of woody biomass potentially for energy, 2010–16
Support for biomass energy
Germany’s national laws, policy frameworks, and market mechanisms – together often referred to as the ‘Energiewende’ (energy transition) – have provided extensive support for the development of renewable energy for many years. For woody biomass these include feed-in tariffs and auctions under the Renewable Energy Act, support for CHP under the Combined Heat and Power Act, funding for biomass boilers under the Renewable Heat Act and bonuses for efficient biomass heating systems under the Market Incentive Programme. The Biomass Regulation requires electricity to be generated using only approved biomass sources, which excludes non-industrial residual wood waste, animal waste, sewage sludge, and peat.121 Unlike several other EU member states, co-firing of biomass with coal is not supported.
Germany’s national laws, policy frameworks, and market mechanisms – together often referred to as the ‘Energiewende’ (energy transition) – have provided extensive support for the development of renewable energy for many years.
Electricity generation from renewables has been supported by several successive pieces of legislation, most recently in 2017.122 A feed-in-tariff system was introduced in 2000, with costs passed on to electricity consumers. In 2014 rates for biomass-powered plants ranged from €58.5 to €135.5 per MWh (depending on the size of the plant) paid on top of the market price; in new installations tariffs are reduced by 0.5 per cent per quarter.123 Concerns over affordability led to a decision to replace the feed-in tariff with auctions for larger systems (for biomass, systems larger than 150 kW) from January 2017.124 There is an annual target for each technology: for biomass, this is currently 100 MW of capacity per year (71 MW was built in 2015). Other forms of support include ensuring that renewable electricity has priority access to the grid and in transmission and distribution.
Renewable heat consumption is promoted through a range of instruments. The Renewable Energies Act encourages CHP by requiring at least 25 per cent of the electricity generated in a plant to be produced by CHP in its first year, followed by a minimum requirement of 60 per cent in subsequent years.125 The Combined Heat and Power Act, which entered into force in 2009, provides subsidies for the construction and modernization of high-efficiency CHP plants. Heat generation from biomass is also supported through the Renewable Heat Act, which requires any new building owner to source a share of their heat from renewable energy systems, including wood-based boilers. Funding is available to homeowners, enterprises, and municipalities to introduce biomass-fired boilers with automatic feed systems (based on wood pellets), or highly efficient wood fuel gasifiers.126 The law also requires public buildings to use renewables for heating and cooling when undertaking renovations.
The Market Incentive Programme has a target of increasing the share of renewable heating and cooling in buildings from around 10 per cent to 14 per cent by 2020. The installation of a biomass boiler with an output up to 100 kW in single or two-family houses receives a grant of up to €400.127 The construction of a biomass boiler in combination with solar thermal to produce hot water, or to supplement the heating system, is eligible for a grant of €500, and increasing the efficiency of these systems in existing buildings receives a grant of €750. Larger installations, including biomass CHP plants with a heat production capacity of 100–2000 kW, and district heating networks, are supported with low-interest loans and partial debt write-offs.
Further policy measures may be introduced by the new government formed in March 2018; the coalition agreement includes commitments to increase the share of renewable electricity to 65 per cent by 2030 and to set a date in 2019 for the phase-out of coal in power generation.128
Sustainability criteria
Germany does not currently possess national sustainability criteria for solid biomass. Most stakeholders tend to regard it as unnecessary on the grounds that German forestry is sustainable and biomass energy mainly uses wastes and residues; imports are low in relation to output. As has been seen, support systems for renewable energy favour small-scale rather than large-scale bioenergy installations, feed-in-tariff rates for biomass are scheduled to fall steadily, and the auction system for new biomass plants is subject to an annual ceiling for new capacity.