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Government Support Fuels Biomass Electricity Market Growth: Pivotal Factor Influencing Biomass Electricity Market Growth in 2025

09-18-2025 09:20 AM CET | Energy & Environment

Press release from: The Business Research Company

Biomass Electricity Market

Biomass Electricity Market

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Biomass Electricity Market Size Growth Forecast: What to Expect by 2025?
In the past few years, there has been significant growth in the size of the biomass electricity market. It is projected to expand from $55.43 billion in 2024 to $58.31 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 5.2%. Good incentives from governments, low-interest rates, the rise of emerging markets, and the substantial ecological impact of traditional power generation methods have all contributed to the historical growth.

How Will the Biomass Electricity Market Size Evolve and Grow by 2029?
In the coming years, anticipations are high for robust expansion in the biomass electricity market, with projections placing its worth at $72.78 billion by 2029, aided by a compound annual growth rate (CAGR) of 5.7%. Factors propelling this growth within the predicted period encompass the worldwide population surge and urbanization, increased funding in renewable power generation, measures to minimalize reliance on foreign oil, and exploration of alternate power generation sources. The forecast period will also see significant trends such as the adoption of bioenergy carbon capture to lower emissions, conversion of traditional boilers to enhance efficiency and lower carbon emissions, integration of anaerobic digestion plants to bring down emissions, investment and innovation in new waste-to-energy technologies, the push for service provision via digital marketplaces, and investments channeled towards artificial intelligence technologies for improved biomass preprocessing.

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What Drivers Are Propelling the Growth of Biomass Electricity Market Forward?
The growth of the biomass electricity market is being fueled by increasing government support through numerous subsidies and policies. This is due to heightened concerns about global warming and the escalating levels of greenhouse gases in our atmosphere, which are largely due to the combustion of fossil fuels such as coal and oil. Consequently, new government policies are being developed to promote sustainable power generation. For example, the Ministry of New and Renewable Energy in India subsidizes the creation of family-oriented biogas plants, largely for rural and semi-urban households, through its National Biogas and Manure Management Programme (NBMMP). The execution of this program is undertaken by the State Nodal Departments/State Nodal Agencies and the Khadi and Village Industries Commission (KVIC), Biogas Development and Training Centers (BDTCs). It offers subsidies reaching up to Rs. 17,000 ($230) for the establishment of biogas plants.

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Which Emerging Trends Are Transforming the Biomass Electricity Market in 2025?
Firms in the biomass electricity sector are coming up with innovative ways to generate electricity through the incorporation of newly established hybrid biogas plants and other renewable energy sources such as solar energy. The use of solar energy in concert with biogas decreases the cost of operation and effort in handling farm-added waste. In a similar move, a new biogas power plant was inaugurated in Sagamihara, Japan, in August 2023 that generates an annual 1.9 million Nm3 of biogas from pig feed waste and food waste via anaerobic digestion. This plant employs a combined heat and power (CHP) system to produce both electricity and heat, which is then fed into the grid and utilized for the plant's daily operations.

What Are the Key Segments in the Biomass Electricity Market?
The biomass electricitymarket covered in this report is segmented -

1) By Feedstock: Solid Biomass, Biogas, Municipal Solid Waste, Liquid Biomass
2) By Technology: Anaerobic Digestion, Combustion, Co-Firing, Gasification, Landfill Gas
3) By End-User: Households, Industrial Sector, Government Sector, Other End Users

Subsegments:
1) By Solid Biomass: Wood Pellets, Agricultural Residues, Wood Chips, Energy Crops
2) By Biogas: Anaerobic Digestion Products, Landfill Gas, Wastewater Treatment Biogas
3) By Municipal Solid Waste: Organic Waste, Recyclable Materials, Non-recyclable Residuals
4) By Liquid Biomass: Biodiesel, Bioethanol, Other Biofuels

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Who Are the Key Players Shaping the Biomass Electricity Market's Competitive Landscape?
Major companies operating in the biomass electricity market include Drax Group, EPH, Engie, EDF, Iberdrola, Acciona SA, RWE, Ørsted A/S, CEZ, Babcock and Wilcox, GGE Power, EnviTec Biogas AG, First Biogas International AG, Shenzhen Puxin Science & Technology Co. LTD, Mingshuo Environment Technology Group Co. Ltd., Clarke Energy, Seko Industries Srl, HC Energy, Agraferm Technologies AG, LMS Energy, Drax Power Limited, EDF Energy, E. ON UK, Enercon, Nordez, Repower, Wartsila Corporation, Suez Water, Ramboll, Graanul Invest Group, NaftoGaz Group, Iogen Corporation, Renewable Energy Group, Pond Technologies, Bio-Enpower Inc, Ag-West Bio, Airscience Technologies Inc. (Biogas), Ameresco Inc., Enviva Partners LP, N-Viro International Corporation, SolaGen Incorporated, FSE Energy Inc., BioDrill, Biomass Thermal Energy Council (BTEC), Taylor Biomass Energy LLC (TBE), American Biocarbon LLC., W2E, Carbon Green, Geradora de Energia Eletrica Alegrete, Liberty Green Renewables LLC, Usina Mandu, Brasil Biomassa e Energia Renovavel, Sonangol Group

What Geographic Markets Are Powering Growth in the Biomass Electricity Market?
Western Europe was the largest region in the biomass electricity market in 2024. Asia-Pacific was the second-largest region in the global biomass market analysis. The regions covered in the biomass electricity market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

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