Germany has been undertaking measures to decarbonize its economy to deal with climate change. For this reason, the government has come up with a number of regulations and incentives to provide support for alternative and more efficient energy sources. The Renewable Energy Sources Act, enacted in 2000, guarantees payment for renewable power fed into the public grid, and is the most successful instrument for boosting the growth of renewables in Germany. With these measures in place, the government intends to widen its range of fuels utilized for electricity generation by 2020. The German government also targets to cut the country's greenhouse gas (GHG) emissions by 40% and up to 95%, upon 1990 levels, by 2020 and 2050 respectively. It is expected that even firmer policies will be implemented in the future.
The country’s highly efficient cogeneration has been provided support through the Combined Heat and Power (CHP) act. The existing cogeneration act that was passed in 2012 (Kraft-Wärme-Kopplungsgesetz (KWKG 2012)) was superseded on January 1, 2016 by the new CHP Act (KWKG 2016). The new CHP Act focuses on boosting highly efficient CHP plants in Germany. The owners of CHP systems obtain bonus for the electricity generated via their cogeneration plants. Through this act, the government aims to enhance future prospects for the growth as well as development of cogeneration systems. The new CHP Act aims sets the target for electricity generation from CHP plants at 110 terawatt hours (TWh) per year by 2020 and 120 TWh per year by 2025. This is lower than the previous CHP expansion target, which was 145 TWh-150 TWh annually (with an objective to attain 25% of CHP share in the total electricity production), in 2020.
- The report provides an overview of Germany's new CHP regulations that will particularly favour the development of big CCGT power plants working in CHP mode.
- Information on the rates offered for CHP support and results of the first CHP auction.
- To understand about Germany's new CHP regulations
- Gain insight into the results of the first CHP auction.
List of Tables
Table 1: CHP Market, Germany, Support for CHP electricity injected into the grid (€cent/kWh)
Table 2: CHP Market, Germany, CHP-support for auto-consumption
Table 3: CHP Market, Germany, Supply to third party outside public grid (‘Kontraktore’) 3