Pathways and pitfalls of implementing the use of woodfuels in Germanyʹs bioenergy sector

The paper presents an empirical study on the use of woody biomass for energy supply in Germany and the federal state of Brandenburg. It aims to explain the role forestry enterprises have for bioenergy provision in this area. The ‘Institutions of Sustainability’ framework is used as an analytical tool to investigate the role of private and public actors in these transactions, respectively, in the governance structures they are subject to. Empirical evidence was gathered by in-depth interviews with actors from forestry and bioenergy practice. Triggered by favorable governance structures, i.e. strong support by national and regional policies, rising prices for fossil energy sources, and co-operation of committed individuals and groups, a new bioenergy industry has been successfully established. However, the forestry sector has so far been just a marginal fuel supplier for this industry. The study identifies pitfalls impeding a broad implementation of wood-energy supply in forestry: not cost-covering prices offered by the bioenergy sector, lacking market transparency and security of supply, lacking mobilization of forest wood, and a preference among forest managers to sell products to the wood-processing industry. In terms of the Institutions of Sustainability the properties of transactions (asset specificities, uncertainties, separability), characteristics of actors (values, rationality) and governance structures (long-term contractual obligations elsewhere) are decisive in explaining the current form of transaction.