Align subsidy rates

By significantly reducing the subsidy rates for biomass plants by 25 percentage points, while only reducing rates for all other renewable energies by 5 percentage points, a 'two-tier subsidy system' that violates the principle of technological neutrality is being created, the associations criticise.

Aligning subsidy rates is urgently needed, they emphasise. The European Renewable Energy Directive defines 'clear, EU-wide uniform, and further tightened sustainability criteria for all solid biomasses compared to the previous directive', the signatories of the paper note. These sustainability criteria should be decisive and sufficient to qualify biomass fuels for subsidies under the EEW. The associations call for technological neutrality as the guiding principle of process heat support instead of prioritising electricity.

Brake on renewable heat generation

Under the EEW, subsidies for biomass systems are only available when direct electrification of process heat generation is technically impossible – regardless of the economic viability of electrification. The signatory associations warn against implementing or maintaining these restrictions as planned. Ultimately, renewable heat generation in the industry accounts for only 6 per cent of process heat provision; an accelerated expansion is therefore urgently needed.

Especially for companies that cannot use other subsidies, an important incentive for transforming heat generation would be removed with these restrictions on biomass, the associations warn. The planned changes would thus hinder the energy transition in process heat generation and, in the long term, achieving Germany's climate goals.

You can find the joint position paper for download on the website of the Fachverband Holzenergie (only available in German).