Biogas, cornerstone for a 100% renewable electricity system in 2035

In May, the German government reaffirmed its goal of completely decarbonizing the electricity market by 2035 in the form of the G7 resolution. It is clear that the main pillar for this is to be the unleashing of cost-effective but fluctuating renewable energy generation from wind and solar. However, a full supply of renewable electricity requires controllable back-up options. The debate on how these back-up options can also be decarbonized has been reignited, not least against the backdrop of the gas crisis triggered by the Ukraine conflict.

In order to quantify and visualize the contribution of biogas to a stable electricity system, Energy2market has commissioned a short study on the role of biogas for a climate-neutral, 100% renewable electricity system in 2035. The study serves as a scientific basis/input for the German government’s upcoming political projects relating to the climate-neutral electricity system platform, the biomass sustainability strategy and the EEG autumn package, which is also intended to realign biogas funding.

In the study, the German Biomass Research Center, together with the Wuppertal Institute for Climate, Environment and Energy, shows the potential of biogas as a substitute for natural gas in the electricity system and examines the advantages and disadvantages of biogas compared to competing usage paths such as biomethane or reconversion from hydrogen. For example, biogas could make a significant contribution to flexible electricity production even without being upgraded to biomethane, i.e. in on-site electricity generation. This would make it possible to replace around 15 % of electricity generation from natural gas. By stepping up efforts to generate electricity flexibly, up to 46% – i.e. almost half – of the electricity currently generated by gas-fired power plants could be covered by biogas while maintaining the current level of electricity generation. While on-site electricity generation is already available in Germany to a significant extent, biomethane production, which would also facilitate the replacement of natural gas outside the electricity sector, would first have to be painstakingly developed. However, even in the medium term, only 3 % of the total demand for natural gas can be replaced by biomethane. The authors also point out that hydrogen power generation will only be possible to a limited extent up to 2030, as the limited availability of hydrogen will primarily be required in the short and medium term in industry and partly also in transportation. Last but not least, the necessary import of the required quantities of hydrogen would lead to renewed dependencies in the energy supply, in contrast to domestic biogas production.

In the study, the authors also shed light on the climate benefits of biogas in comparison to the possible alternatives of controllable electricity generation. While the carbon footprint of electricity generation from biogas is largely negative, even taking into account indirect emissions across the entire conversion chain of electricity generation, 350 g CO2eq/kWh are generated for one kilowatt hour of electricity from natural gas. Hydrogen from electrolysis also only achieves its climate benefit if the grid electricity used for production has an emission intensity of less than 180 g CO2eq/kWh. However, the electricity mix in Germany still had an emission factor of around 400 g in 2019. The study also shows that even without NawaRo, the feedstock supply of the plants will remain guaranteed in the future by largely switching to residual and waste materials.

However, the study also points out that without an adjustment to the existing subsidy regime, there will be a reduction in the existing plant fleet. A net decline in installed electrical output and the work generated can already be observed today. To ensure that not only the quantities of electricity generated from natural gas are replaced proportionately, but also that the quality of biogas generation remains guaranteed, additional biogas capacities must above all be used to benefit the system. Biogas will only be able to play its role as a flexibility anchor in the electricity system of the future if legislators provide stronger incentives for flexibility.

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Click here for the study:

https://www.dbfz.de/fileadmin/user_upload/Referenzen/Studien/Kurzstudie_Biogas_2022.pdf

If you have any questions, please contact:

Energy2market GmbH I Weißenfelser Str. 84 I D-04229 Leipzig
Anne Walter
Marketing & Communication
E-mail: anne.walter@e2m.energy
Phone: +49 341 230 28-237

About e2m

Energy2market (e2m), founded in 2009 at its current headquarters in Leipzig, is one of the largest aggregators and energy traders for renewable energies in Germany. The energy service provider bundles, monitors and controls over 5,000 decentralized generation plants from renewable energy producers, electricity storage facilities and consumers via its own virtual power plant and networks them with the electricity trading markets. With 2,924 MW of marketed generation capacity from renewable energy plants, e2m is one of the largest direct marketers for energy and is the largest pool provider for balancing energy. With the infrastructure required to market energy flexibility, market access to all relevant trading markets and the many years of expertise of around 100 employees, e2m is helping to shape the energy market of the future. Since September 2019, e2m has been part of the renewables division Local Energy Management (LEM) of the energy group EDF. For more information: e2m.energy