Biomethane combined heat and power (CHP) plants can make an important contribution to a low-greenhouse-gas and secure energy supply thanks to their flexible, demand-responsive electricity generation. However, new studies by IKEM show that complex legal frameworks can make it difficult to plan and finance biomethane projects.
As the energy system undergoes transformation, the importance of flexible renewable energy sources is growing. Biomethane can be stored and converted into electricity as needed; therefore, when combined with the flexible operation of combined heat and power (CHP) plants, it is well-suited to complement an electricity system that is increasingly dominated by wind and solar energy.
Since biomethane is available only in limited quantities and is relatively expensive, the EEG limits subsidies to 876 full-load hours to ensure that this energy source is used as flexibly as possible and in a way that benefits the grid. The economic viability of biomethane CHP plants is also significantly determined by legal and regulatory requirements.
The two IKEM studies now published systematically analyze these regulatory requirements for the first time across the entire biomethane value chain—from biogas production through processing and transportation to the use of biomethane. While the first study examines the legal framework for operating highly flexible biomethane CHP plants, the support mechanisms under the EEG and KWKG, and current developments in grid regulation law, the second study analyzes the legal factors that influence biomethane pricing. Among other things, the study examines requirements for gas quality and sustainability, verification obligations, grid fees, surcharges, taxes, and emissions regulations.
The two papers serve as an important guide for plant operators and the biomethane industry, explains study author Leonie Durschang. At the same time , she points out the urgent need for adjustments and clarification:
“These studies provide clarity on the regulatory requirements for biomethane. However, they also highlight that the current legal framework is too complex and contains ambiguities in various areas. This applies in particular to the question of the permissible use of other energy sources outside of eligible full-load hours, the treatment of biomethane CHP plants in the context of redispatch measures, and specific transitional and verification provisions in gas and sustainability law. These legal uncertainties can undermine planning and investment certainty for market participants.”
The two studies were conducted as part of the BioM0876 project (grant number 2221NR085B), funded by the Federal Ministry of Agriculture, Food, and Home Affairs. The goal of the project is to determine the fundamentals for the economically viable operation of biomethane CHP plants under the subsidy conditions of the EEG 2023 and to support the further development of the biomethane market.
