Germany publishes two price setting ceilings for 2026 biomass and biomethane auctions
In Germany, Bundesnetzagentur recently published two determinations setting price ceilings for the biomass and biomethane auctions to be held in 2026. The maximum price that can be bid for new biomass installations remains 19.43 cents per kilowatt hour (ct/kWh) and that for existing biomass installations 19.83 ct/kWh. A ceiling of 23.13 ct/kWh will apply to biomethane installations.
The price ceilings for biomass installations are the same as those set for last year’s auctions. The most recent auction in October 2025 was the first auction subject to a new scheme under the biomass package. The biomass package includes new rules on financial support for biogas plants, creating incentives for increased market integration. The bids submitted in the Bundesnetzagentur’s first auction subject to the new financial support rules were sufficient to cover the significantly higher auction volume under the biomass package. The same price ceilings will thus still create enough scope to make participation in this year’s auctions economically viable.
No bids were submitted in last year’s biomethane auctions. In addition, the anticipated levelised costs of electricity indicate that last year’s price ceiling would not be adequate to cover the auction volume. The Bundesnetzagentur has therefore increased the price ceiling by 10% compared with last year. This will create additional incentives for bidders to participate in the forthcoming auctions. The increase is the maximum allowed under the legislation.
The determinations apply to the auctions in the next twelve months, including the two auctions for biomass and biomethane installations that will close for bids on 1 April 2026.
Category: Policy
