Biomass Electricity Market Report 2026

The biomass electricity market size has grown strongly in recent years. It will grow from $58.31 billion in 2025 to $61.44 billion in 2026 at a compound annual growth rate (CAGR) of 5.4%. The growth in the historic period can be attributed to government incentives for renewable electricity, adoption of biomass combustion technologies, development of energy crop cultivation, increasing waste-to-energy projects, rising awareness of fossil fuel alternatives.

The biomass electricity market size is expected to see strong growth in the next few years. It will grow to $77.09 billion in 2030 at a compound annual growth rate (CAGR) of 5.8%. The growth in the forecast period can be attributed to advancements in gasification and co-firing technologies, growth in industrial-scale biomass electricity plants, integration with smart grids, expansion of municipal solid waste management programs, rising demand for sustainable biofuels. Major trends in the forecast period include increasing adoption of solid biomass feedstock for electricity generation, rising utilization of biogas and anaerobic digestion technologies, expansion of municipal solid waste-to-energy projects, integration of liquid biomass for biofuel-based power generation, growing focus on combined heat and power (chp) systems.

The increasing flow of investment into the energy sector is anticipated to stimulate the growth of the biomass electricity market in the coming years. The energy sector represents the segment of the economy responsible for producing, generating, distributing, and using different types of energy. Higher investment in this sector supports biomass energy by encouraging the development and scaling of sustainable biomass projects, resulting in greater renewable energy output and decreased dependence on fossil fuels. For example, in June 2025, data from the International Energy Agency, an intergovernmental organization based in France, indicated that global investment in solar energy, including both utility-scale and rooftop systems is expected to reach $450 billion in 2025. Thus, growing investment in the energy sector is contributing to the expansion of the biomass electricity market.

Companies in the biomass electricity market are prioritizing innovative power generation solutions, such as combined heat and power (CHP) systems based on biogas, to enhance efficiency, minimize waste, and advance sustainability objectives. Biogas CHP systems generate electricity and heat from organic waste through anaerobic digestion, allowing organizations to transform agricultural and food waste into renewable power while also feeding excess electricity into the grid. For instance, in August 2023, HoSt Group, a company based in Japan, introduced the 530 kWe “Sagamihara Biogas Power” plant, which produces 1.9 million Nm3 of biogas annually from pig feed waste and food waste using anaerobic digestion. The facility utilizes a CHP system to produce electricity and heat, both of which are used for plant operations and supplied to the grid.

In June 2024, Greenvolt Energias Renováveis, S.A., a renewable energy company from Portugal, acquired the Kent Renewable Energy Plant for an undisclosed sum. With this acquisition, Greenvolt intends to increase its biomass electricity generation capacity in the United Kingdom and promote sustainable energy production. Kent Renewable Energy Limited is a UK-based operator of a biomass combined heat and power (CHP) plant that generates renewable electricity and heat.

Major companies operating in the biomass electricity market are Drax Group, Engie, EDF, RWE, Ørsted A/S, Ameresco Inc, CEZ Group, Xcel Energy Inc, Salzburg AG, Vattenfall AB, Dominion Energy, Acciona SA, Fortum Oyj, E.ON (biomass electricity division), Statkraft, NextEra Energy (biomass portfolio), China Energy Investment Corporation, Japan Renewable Energy Company (RENOVA Inc), San Carlos BioPower, Oy Alholmens Kraft Ab.

Western Europe was the largest region in the biomass electricity market in 2025. 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, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the biomass electricity market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The biomass electricity market includes revenues earned by entities by wood and agricultural products, landfill gas and biogas, and alcohol fuels such as Ethanol or Biodiesel. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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