A new market incentive programme (Marktanreizprogramm, MAP) for the renewable energy industry in Germany has been in place since 15 August, benefitting single-family homes or apartment buildings, as well as smaller public and commercial buildings. When announcing the new subsidies, Federal Environment Minister and patron of the 12th Pellets Industry Forum, Peter Altmaier, emphasized the importance of the heating market for the energy revolution.
In recent years, rising heating oil prices and ecological aspects have led to an increased demand for renewable heating systems in Germany. As such, and due to the significant advantage of pellets over fossil fuels in terms of cost, the European Pellet Council (EPC) in Brussels anticipates a record year for the European pellet industry.
According to the EPC, pellet imports to the EU increased 50 per cent in a single year 2009-2010 to 2.5 million tonnes, while trade within the EU rose 60 per cent to 3.45 million tonnes. Overall, global trade could hit 60 million tonnes by 2020, it says.
The revised market incentive programme introduced by the Federal Ministry for the Environment now offers additional incentives on the German market for making the switch to renewable energy. For example, basic funding is increasing for retrofitting pellet and other biomass boilers in existing buildings. In the future, increased funding is particularly being directed at smaller systems with outputs of up to 100 kilowatts, such as those used in single-family homes or apartment buildings, as well as smaller public and commercial buildings.
Additional funding is being given to those who invest in highly innovative systems or combinations of different technologies, such as a pellet heating system with a solar thermal installation on the roof. Companies and associations in the industry consider the step forward as sending an important signal for the development of renewable energy and anticipate an increase in demand.
“More and more people will want to take advantage of the funding for pellet heating systems thanks to the new market incentive programme policy that has been in force since August 15, 2012. Anybody wanting to switch over can, for example, now benefit from a minimum subsidy increased by 400 euros and can even have environmentally-friendly and affordable pellet-fired heating in time for winter. Heating engineers, energy consultants and chimney service technicians should inform consumers of the improved conditions before the heating season begins,” says Martin Bentele, CEO of the German Energy Wood and Pellet Association (DEPV) in Berlin.
A key theme of the 12th Pellets Industry Forum taking place in October will be the development of the German and international key markets, which is strongly influenced by the underlying conditions in the industry. “The new market incentive programme policy shows once again that the growth of the pellet industry is influenced by ever changing factors, whether political decisions or economic developments. This makes it difficult to predict how the pellet market will develop. At the 12th Pellets Industry Forum, attendees can join distinguished experts from industry and associations to discuss whether the pellet industry is experiencing a new boom and what forces drive the market or slow it down,” says Markus Elsässer, CEO of the event organizer, Solar Promotion GmbH in Pforzheim.
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