The European Commission (EC) has cleared an amendment to raise the budget of Germany’s existing renewable energy scheme by €7.9 billion. The scheme, which was originally approved in December 2022, covers electricity generation from biomass and biogas. The revised framework will expand tender volumes, introduce a specific quota for biomass plants already linked to heating networks, and restrict the number of production hours for biogas.
Additionally, the amendment will also shorten the time window for older installations to transition to the updated biomass support mechanism and raise the payment level for flexible electricity generation. The EC reviewed the changes under Article 107(3)(c) of the Treaty on the Functioning of the European Union (TFEU) and the Guidelines on State aid for climate, environmental protection and energy (CEEAG).
It concluded that the revised scheme is necessary, appropriate, and proportionate. The financial support will be kept to the minimum required to stimulate investment in biomass and biogas electricity production even at high prices, while maintaining limited effects on competition and trade within the European Union (EU). On this basis, the amended scheme received approval under EU State aid rules.
