In a recent report*, analysts have predicted that demand for biomass in Europe will increase by 44% between 2010 and 2020. Furthermore, growth is expected across a broad range of sectors including energy generation, industrial production and residential heating. Indeed, measured on a Europe wide level, biomass represents the largest source of all renewable energy.
Within the EU, the renewables based heating market is dominated by domestic decentralised heating appliances using biomass. The use of biomass in centralised heating plants or CHP-plants also plays an important role in Nordic countries, Germany and Italy. The modest development of renewables based heat production can be explained by the lack of an adequate support framework across member states. However, this should change following the inclusion of the renewables based heating and cooling sector in the new EU renewable energy framework.
At present, Germany is unique with respect to its concrete ambitions for green gas and accompanying regulation. Authorities have set an absolute target for the production of 6 billion Nm³ green gas by 2020, amounting to 6% of its internal use, and by 2030 this will have increased to 10%. Market development has also been supported through the so called ‘Gasnetzzugangsverordnung’ regulation.
An important part of these regulations are agreements with regard to the division of duties and responsibilities between supplier and grid manager coupled with the accompanying cost structure. Right now, France and Sweden are also working on the regularization of gas grid connections for green gas.

Source: Electricity Generation in Germany, Field report 2011 to the,Renewable Energy Sources Act, (EEG-Erfahrungsbericht), German Federal Government
The number of countries where the development of green gas is being discussed has increased markedly over the past year. Until recently progress was limited to Sweden, Germany, Austria, Switzerland, and the Netherlands. However, green gas developments are now taking off elsewhere in Western Europe and further afield in North and South America.
* RISI: European Biomass Review; http://www.risiinfo.com/risi-store/do/product/detail/European-Biomass-Review.html?source=D16J
Posted by Susann Funke on the 22nd of September 2011
This article is part of a series of Baringa view points on renewable energy. Read our thoughts on:
Wind Farms: http://www.baringa.com/baringa_blog/item/the_rise_of_private_equity_in_wind_farm_ownership/
Wave and Tidal Energy: http://www.baringa.com/baringa_blog/item/the_tides_are_turning/
Solar Panels: http://www.baringa.com/baringa_blog/item/shifting_demand_patterns_shake_up_photovoltaic_suppliers/