Long-term certainty through the successful operation of its own plants
EnviTec Biogas AG performed as expected in the latest biomass auction held by the German Federal Network Agency for biogas plants under the Renewable Energy Sources Act (EEG). With awards granted for plants with a total electrical capacity of around 16 MW, the Lower Saxony-based plant manufacturer is among the successful participants in the current auction round. “This enables us to place part of our plant portfolio on a new basis with long-term planning certainty,” says EnviTec CEO Olaf von Lehmden. “At the same time, we are continuing along the path of gradually unlocking value creation outside the subsidised EEG framework for our plants.”
The German Federal Network Agency regularly conducts public auctions for renewable energy installations. The aim is to determine support levels on a competitive basis while at the same time maintaining demand-oriented biogas capacity within the electricity system. For operators, participation is a strategic option for continuing to run selected plants beyond the current support period on a secure remuneration basis. “This result is a great success for our company and confirms the high quality of our project development as well as the excellent work of our teams,” says CFO Jörg Fischer.
Complex procedure mastered successfully
The auction success was preceded by an intensive preparation phase. Within the company, a specific technical implementation concept was first developed for each plant. This was followed by the calculation of volumes and bid prices, as well as the actual tendering process. Among other things, entries in the Market Master Data Register had to be checked, bid volumes and bid prices defined, and the application documents prepared and submitted on time. More than 30 individual bids were prepared for the auction round with a submission deadline of 1 April alone. As plants must be implemented no later than 3.5 years after the award is granted, only those plants whose existing EEG support expires by 31 December 2029 at the latest were taken into account.
EnviTec Biogas currently operates 35.9 MW of electrical generation capacity in the EEG-supported electricity generation segment through plants in which the company holds a majority interest. Plants with a total electrical capacity of 19.6 MW were registered for the auction. The result: 82 per cent of this capacity received an award for continued operation. Only seven plants with a total capacity of 4.7 MW have so far not received an award. A comparably positive result can also be seen in companies in which EnviTec holds a stake of 50 per cent or less.
Long-term prospects for existing plants
“With these awards, we are moving part of our plant portfolio into a new, long-term secured remuneration framework and are thus creating a reliable basis for the coming years,” Olaf von Lehmden concludes. This requires targeted investment in the plants. At the same time, conversion and continued operation ensure solid capacity utilisation in the Service segment. “This foundation gives us the backing to systematically develop new fields of application for our plants beyond EEG support, for example in heat supply and in the transport sector. To achieve lasting success in these areas, however, reliable framework conditions are needed – especially in Germany,” von Lehmden adds.
