Auctions as a tool for building new capacity? Existing power plants dominated Germany’s latest biomass auction

Germany is not sitting idle this year either, holding a range of different auctions to support the development of renewable energy use. Although the vast majority of the capacity put up for auction is for solar and wind power plants, two separate rounds are planned this year for both biomass plants and gas-fired power plants that burn biomethane. While the auctions for biomethane plants failed to attract a single bid, the situation was different for biomass. Although the volume of bids submitted exceeded the auction volume, nearly all the capacity offered came from existing plants.

In addition to a number of separate rounds for solar and wind power plants, Germany also supports the operation of plants that burn biomass or biomethane through its auction system. The country plans to hold a total of four auctions for these plants this year, with two rounds for each category. The first auctions of the year for biomass, as well as for new plants expected to generate electricity from biomethane supplied to the country’s gas network, were held in early April.