UPEC 2011 ∙ 46th International Universities' Power Engineering Conference ∙ 5-8th September 2011 ∙ Soest ∙ Germany
Towards an Economy Based on Renewable Energy
Generation: Is Biogas Part of the Solution?
Wolfgang Stauss * Dr. Ralf Biernatzki
Institute for Institute for
Green Technology & Green Technology &
Rural Development [i.green] Rural Development [i.green]
w.stauss@fh-swf.de r.biernatzki@fh-swf.de
Abstract - Electricity generation based on biogas has seen
rapid growth in the last years in Germany due to a favourable
regulatory framework. For the provision of this renewable
energy source, the agricultural and energy sector have to work
closely together. With a linear programming model, developed
at the Faculty of Agriculture at the South Westphalia University
of Applied Sciences, changes of market parameters, efficiency
gains and support schemes can easily be analysed for biogas
plants on a farm level. The methodology is explained and the
results for policy makers are presented in the light of the upcom-
ing amendment of the Renewable Energy Sources Act (EEG)
2012. Finally, additional strengths for biogas as balancing
power are identified.
Index Terms -- biogas, decentralized energy production,
EEG, policy making
I. INTRODUCTION
Biogas has a prominent position in comparison to other
major technologies in the renewable field, like photovoltaic
energy (PV) and wind-power. The key characteristic of bio-
gas is its base load capacity: while PV and wind-power are
dependent on weather conditions, biogas can be produced
continuously, generating power and heat with high efficiency.
However, to produce biogas, regular feeding of the plant with
organic material (waste or energy crops specifically grown
for this purpose) is required. Therefore, in the field of energy
generation through biogas, two very different industries meet:
the energy business and the agriculture sector. This is why
the presented project is being performed at the Institute of
Green Technology & Rural Development [i.green], which
brings together the technical and agricultural departments at
the campus of the South Westphalia University of Applied
Sciences in Soest.
The EU has defined ambitious objectives concerning
avoidance of climate change with a focus on strengthened
renewable energies. Germany has set the target of 18 % gross
final energy consumption to be allocated to renewable energy
sources in 2020 [1]. Until 2050, this portion shall increase to
60 %. Concerning electricity, the targets are even higher: for
2020, gross electricity consumption allocated to renewable
energy generation shall reach 35 % with 15 % increases every
decade until 2050, when 80 % of the gross electricity con-
sumption shall originate from renewable sources [2]. Until
the end of 2010, gross final energy consumption reached
11 % and 16,8 % gross electricity consumption from renew-
able sources [3]. The rise of renewable energy generation in
* Corresponding author
ISBN 978-3-8007-3402-3 © VDE VERLAG GMBH ∙ Berlin ∙ Offenbach
Prof. Dr. Jürgen Braun Prof. Dr. Wolf Lorleberg
South Westphalia University of South Westphalia University of
Applied Sciences, Applied Sciences,
Faculty of Agriculture Faculty of Agriculture
braun@fh-swf.de lorleberg@fh-swf.de
Germany is to a large extent based on the regulatory frame-
work of the Renewable Energy Sources Act, the so-called
EEG (German abbreviation). This act came into effect in
1991 and ensured small energy providers access to the grid
and a minimum compensation for the supplied energy – the
first boom of wind-energy followed. With amendments in
2000 and 2004, the EEG has been lastly updated in 2009 with
the clear intention “to increase the share of renewable energy
sources in electricity supply to at least 30 per cent by the year
2020 and to continuously increase the share thereafter” [4].
The next amendment shall come into effect as of 1st January
2012. The regular amendments are being done in order to
account for know-how generation and learning curve-effects:
especially when it comes to PV, prices for modules have
substantially fallen in the past so that the compensation for
each kWh generated from PV installations had to be reduced.
Concerning biogas, the EEG is considered as a vehicle to
not only generate energy from a renewable source, but also to
a.) create a new market for agricultural raw materials,
b.) target climate issues (methane reduction),
c.) replace natural gas and thus
d.) reduce national dependency on gas imports.
The compensation for electricity generation through biogas
can be divided into a basis fee and several, to some extent
cumulative, bonuses. This compensation scheme is currently
being reviewed in order to meet the above listed secondary
objectives with more success with the next amendment.
Observing the number of plants and the installed electrical
capacity, the last years have brought a substantial increase of
biogas production in Germany as is shown in Fig. 1.
Fig. 1. Number of biogas plants and installed capacity in Germany
since 1992. Significant increases occurred following the EEG
amendments of 2004 and 2009.
Data obtained from Fachverband Biogas [5]
 UPEC 2011 ∙ 46th International Universities' Power Engineering Conference ∙ 5-8th September 2011 ∙ Soest ∙ Germany
As mentioned above, the agricultural sector is the main
supplier of the organic material for the generation of biogas.
Since the agricultural structure differs concerning soil, land-
scape and other regional characteristics, favourable sites for
biogas production are not evenly distributed. Fig. 2 shows
the regions where biogas plants concentrate in Germany.
This is especially the case in the North-Western part of the
two states North Rhine-Westphalia (NRW) with major animal
keeping farms and the West of Lower Saxony. In Southern
states, Bavaria and Baden-Württemberg show major concen-
tration zones.
Sites of biogas plants
[number]
Date: January 2010
DeutschesBiomasseForschungsZentrum, 2010
Fig. 2. Sites of biogas plants in Germany with concentration areas.
II. THE BIOGAS MODEL
The role of biogas as an investment alternative for farmers
in NRW has been modelled in the agricultural department of
the South Westphalia University of Applied Sciences. The
model has been built using Linear Programming (LP) and the
Solver software of Frontline Systems Inc. Solver is widely
known in the basis version as a part of Microsoft Excel, how-
ever, with only 200 linear variables this does not suffice for
larger models. The agricultural model built for the biogas
simulation e.g. has 250 variables and comprises 23 spread-
sheets. Therefore, the Premium Solver Platform was used
which allows to set up a model with 40 times more linear
variables.
The model itself describes a farm that is equipped with
production factors (cropland, grassland, barn capacity, man-
power, etc.) and investment options, e.g. additional buildings
for livestock, purchase of cattle or building biogas equipment.
Spreadsheets for all relevant activities in the production cycle
of the farm define the costs, the required resources and the
revenues for each activity. Prices need to be regularly up-
dated. In addition, the nutrient balance, a pivotal characteris-
tic of the agricultural production cycle, is calculated. The
target row in the model matrix sums up costs and revenues,
defining the optimum result of Solver’s simulation.
ISBN 978-3-8007-3402-3 © VDE VERLAG GMBH ∙ Berlin ∙ Offenbach
In a second step, answer and sensitivity reports are being
used to analyse the results of the simulation. Which invest-
ment routes were taken given the constrained capacities and
investment options? How much biogas and in which kind of
plant with which bonuses has been produced and how much
electricity and heat has been generated? The sensitivity re-
port gives shadow prices for scarce resources – these are
especially meaningful concerning land as biogas is suspected
to distort land leases.
The simulation run is done on a farm level. The results
give indications about a specific agricultural business. In
order to arrive at results on a state level, the typical farming
layouts are being simulated and a certain percentage estab-
lished to invest. The as-is-scenario can be compared to an
invest-scenario to analyse consequences of changes in pro-
duction methods and, most importantly, adaptations to incen-
tives in the biogas generation on a regional level.
III. RECENT RESULTS
As the 2012 amendment of the EEG draws near, the differ-
ent actors begin to formulate their positions on the future of
the renewable energies support in Germany. Concerning
biogas, one of the first substantial inputs came from the Min-
istry of Environment and Climate Protection of Lower
Saxony. It argued that due to the massive increase in biogas
production in the state (see Fig. 2), a complete cancellation of
the bonuses and an overall decrease of the compensation
system would be required. Only plants which would be able
to acquire non-agricultural input materials and residues and
which were able to sell the produced heat at market prices
should be given an economic perspective for future invest-
ments. These demands were easily transferable into the
model and simulations could be run for 6 districts of NRW.
It was found that in comparison with simulations to the cur-
rent EEG, the proposals of Lower Saxony would lead to a
drop in new biogas-plant installations of 50 to 80 %. Like-
wise, the demand for arable land would decrease, although to
a less extent. The cultivation area of the crop mostly fa-
voured for biogas, maize, would also drop. This way, one of
the intentions of the Ministry is met: exceeding maize cultiva-
tion is seen as one of the negative environmental effects of
the biogas promotion.
Based on these results, a number of additional scenarios
have been developed, which will require some changes of the
model itself and of the price assumptions. As agricultural
markets have become extremely volatile in recent years, two
price levels, based on wheat prices of 170 €/t and 230 €/t will
be referenced. The lower price level indicates highly profit-
able market conditions for biogas (low costs for input materi-
als), while the higher price level drains financial resources:
biogas plants will have difficulties acquiring the necessary
input materials as farmers can sell their products on other
markets for better profit. The analysis will provide signifi-
cant information for policy makers in NRW for the amend-
ment of the EEG 2012.
 UPEC 2011 ∙ 46th International Universities' Power Engineering Conference ∙ 5-8th September 2011 ∙ Soest ∙ Germany

IV. BIOGAS AND GRID SERVICES

As mentioned above, one of the strengths of biogas is its
independency on weather conditions. To date, the Combined
Heat Power (CHP) plants at biogas sites run 24 hours per day,
feeding in electricity to the grid continuously. This is due to
the current EEG which refunds each kWh of electricity pro-
duced by the plant. Given the future growth of renewable
energies and the volatility of wind and PV, additional balanc-
ing power will be needed to ensure grid stability. Connecting
the strengths of biogas with grid requirements and thus solv-
ing problems of one renewable source with another is an
attractive perspective for biogas.
One option for biogas to provide grid services would be
negative balancing power. Stopping the CHP for several
hours when the grid capacity is reached and storing the biogas
for this time is possible for most plants with only minor in-
vestments in automation equipment. If larger numbers of
plants are being linked, considerable electric power is avail-
able for grid balancing with high efficiency. Biogas plant
owners would make additional profits for providing balancing
capacity. However, with the current EEG, it is not clear yet,
whether regulatory bodies permit this “multiple sale” [6]. It
is expected that with the amendment of the EEG in 2012
provision of balancing power will be permitted if not encour-
aged.

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ISBN 978-3-8007-3402-3 © VDE VERLAG GMBH ∙ Berlin ∙ Offenbach