2,600 MW of new biogas will be constructed by 2025: report

June 12, 2016 |

In Germany, a new market study by ecoprog concluded that 2,600 MW of new biogas will be constructed by 2025 and that Europe will remain the most important market for new biogas plants. More than 12,000 biogas plants are currently active worldwide, reaching a capacity of about 7,000 MW. Over 90% of these facilities are located in Europe, as parts of this region already started to introduce subsidization schemes for renewable energy (RE) in the 1990s. About two thirds of all the world’s biogas plants are installed in Germany, where about 8,000 facilities were constructed based on the regulations of the German Renewable Energy Act (Erneuerbare-Energien-Gesetz, EEG).

biogas_to_energy_forecast_ecoprog

However, Germany cut subsidies considerably in 2012 and the market, once dominating global market activities, slumped. Other countries have also begun to focus their subsidization schemes on competition, saving costs and sustainability criteria. In Bulgaria and the Czech Republic, this has even resulted in a complete halt of state support. Consequently, the report found that number of biogas plants will increase in the years to come, but to a significantly smaller extent than in the booming years of the early 2010s. Whereas about 3,000 MW were installed between 2010 and 2015, the installed capacity will only increase by about 2,600 MW to 9,600 MW from 2016 until 2025.

About 90% of all capacities were built in Europe in the booming years around 2011, but the share of new constructions will decline to about 75% by 2025. Europe thus remains the by far strongest regions worldwide. The strong biogas markets in France, the UK, Italy and Poland will at least compensate some of the considerable decrease of the German market. France will be the world’s strongest growth market by 2025. About 440 MW will be constructed there, the authors found, citing a new energy transition law passed in 2015, where the feed-in tariff was increased and an additional auction system was introduced.

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Category: Fuels

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