Further operation of flexible biogas plants – realisable bid prices in the EEG 2017

Abstract

With the tendering procedure of the Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz, EEG) 2017, the opportunity was created to transfer existing biogas plants into a 10-year follow-up remuneration through new commissioning. A detailed analysis of possible revenues and costs can be an advantage when placing bids. Thus provide clarity about the economic situation of a biogas plant during the follow-up period. The aim of this paper is to demonstrate that there are potential economic options for selected existing biogas plants in Germany in the electricity market. Namely to switch to the tender design under EEG 2017 and to take advantage of the 10-year follow-up remuneration. For now, the tender corridors beyond 2022 are not determined yet. But in the course of an upcoming amendment of the Renewable Energy Sources Act it is likely that there will be a notable corridor volume from 2023 onwards. In addition to the ability to operate flexibly, the decisive factor for the economic operation of a plant beyond the 20-year EEG remuneration period is the levelized costs of electricity (LCOE). Or more precisely the LCOE that can be realized in the follow-up period. If a subsidy charge can be achieved that, combined with market earnings, exceeds the average LCOE in the follow-up period, economic operation is ensured. Otherwise, additional sources of revenue or cost reduction potential must be tapped.