The biogas dilemma in today’s renewable power markets

Abstract

In 2024, wind and solar accounted for 96.6% of newly installed global renewable electricity capacity, while biogas accounted for only 0.5%. There are two structural challenges constraining biogas expansion: cost competitiveness and feedstock limitations. Over the past decade, unlike wind and solar energy, whose costs have dropped by 70%–90%, bioenergy costs have remained almost unchanged. Recurring feedstock costs and limited feedstock availability risk turning ambitious biogas expansion into competition with agricultural land. These challenges have created uncertainty for the future development of biogas projects, which are now heavily dependent on government subsidies. Given these economic and resource realities, biogas projects should be strategically reassessed not as a primary energy source but as a niche solution for seasonal energy storage, grid balancing, waste management, and green chemistry. A case-by-case approach is essential to avoid misallocation of limited government subsidies and to ensure biogas projects are operated sustainably both economically and environmentally without becoming a financial burden.

Graphical abstract

Keywords

Biogas / Renewable energy market / Levelized cost of electricity / Renewable energy policy

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Higher Education Press 2026