Country:Germany
Year:2000
Policy status:Superseded
Date Effective:2000
Date Ended:2002
Policy Type:Economic Instruments>Fiscal/financial incentives, Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums, Regulatory Instruments>Obligation schemes , Voluntary Approaches>Unilateral Commitments (Private sector)
Energy Efficiency Policy Targets:Energy Utilities, CHP
Renewable Energy Policy Targets:Multiple RE Sources, CHP
Policy Sector:Electricity
Climate Change Policy Targets:Energy Sector, CHP
Agency:Federal Ministry for Economic Affairs and Energy
URL:http://www.bmwi.de
Legal References:Bundesgesetzblatt 2000, I, No. 22 (17 March 2000, p. 703-704)
Energy Efficiency Description:

In 2000 new rules were built on emergency support for municipally owned CHP plants which were coming under increasing pressure from falling power prices in a newly liberalised electricity market and many were being closed. Having stabilised the market, the government wanted to ensure an increasing share of CHP-produced electricity, aiming at lowering carbon dioxide emissions by 23m tonnes by 2010. Half of this target is to be achieved by the CHP law, the other half by an agreement of German industry. The law offers CHP plant operators supplying electricity to the grid fixed prices above the market rate for up to ten years. Modernised plants built before December 2005 will benefit up to 2010: 1.74 Cent/kWh in 2002, 2003,2004; 1.69 Cent/kWh in 2005.2006; 1.64 Cent/kWh in 2007,2008; 1.59 Cent/kWh in 2009, 2010. Plants built before 1990 will benefit up to 2009: 1.53 Cent/kWh 2002, 2003; 1.38 Cent/kWh 2004,2005; 1.23 Cent/kWh 2006,2007; 0.82 Cent/kWh 2008; 0.56 Cent/kWh 2009. Those built before 1990, which are generally less efficient, will be eligible only to 2006. Fuel cells, supplying CHP-produced electricity to the grid, benefit of 5.11 Cent/kWh above the market rate for up to ten years from their installation on. The incentives are financed by a levy: 0.1-0.15 Cent/kWh for households, 0.5 Cent/kWh for industry (consuming more than 100 000kWh).

Renewable Energy Description:

In 2000 new rules were built on emergency support for municipally owned CHP plants which were coming under increasing pressure from falling power prices in a newly liberalised electricity market and many were being closed. Having stabilised the market, the government wanted to ensure an increasing share of CHP-produced electricity, aiming at lowering carbon dioxide emissions by 23m tonnes by 2010. Half of this target is to be achieved by the CHP law, the other half by an agreement of German industry. The 2000 law offered CHP plant operators supplying electricity to the grid fixed prices above the market rate for up to ten years. Modernised plants built before December 2005 were to benefit up to 2010: EUR 1.74 Cent/kWh in 2002, 2003 and 2004; EUR 1.69 Cent/kWh in 2005 and 2006; EUR 1.64 Cent/kWh in 2007 and 2008; EUR 1.59 Cent/kWh in 2009 and 2010. Plants built before 1990 were to benefit up to 2009: EUR 1.53 Cent/kWh in 2002 and 2003; EUR 1.38 Cent/kWh in 2004 and 2005; EUR 1.23 Cent/kWh in 2006 and 2007; EUr 0.82 Cent/kWh in 2008; EUR 0.56 Cent/kWh in 2009. Fuel cells, supplying CHP-produced electricity to the grid, benefited frin 5.11 Cent/kWh above the market rate for up to ten years from their installation on. The incentives were financed by a levy of EUR 0.1-0.15 Cent/kWh for households, and EUR 0.5 Cent/kWh for industry (consuming more than 100 000 kWh).

Climate Change Description:

The Co-generation Act, which came into force in May 2000, guarantees temporary protection for existing CHP installations operated for the public grid. Similar to the assistance for electricity produced from renewable energies, such units initially receive a guaranteed minimum sales price for their electricity in the amount of DM 0.09/kWh (EUR 0.05 /kWh) from the grid operator. This minimum sales price will be lowered by the annual amount of DM 0.005/kWh (EUR 0.02/kWh) up to the expiration of the Act. The companies that run the grid initially receive a bonus of DM 0.03/kWh from the transmission system operator. This bonus will be lowered also by the annual amount of DM 0.005/kWh. The charge resulting from the bonus has been levelled out between the transmission system operators. The 2000 law offered CHP plant operators supplying electricity to the grid fixed prices above the market rate for up to ten years. Modernised plants built before December 2005 were to benefit up to 2010: EUR 1.74 Cent/kWh in 2002, 2003 and 2004; EUR 1.69 Cent/kWh in 2005 and 2006; EUR 1.64 Cent/kWh in 2007 and 2008; EUR 1.59 Cent/kWh in 2009 and 2010. Plants built before 1990 were to benefit up to 2009: EUR 1.53 Cent/kWh in 2002 and 2003; EUR 1.38 Cent/kWh in 2004 and 2005; EUR 1.23 Cent/kWh in 2006 and 2007; EUr 0.82 Cent/kWh in 2008; EUR 0.56 Cent/kWh in 2009. Fuel cells, supplying CHP-produced electricity to the grid, benefited frin 5.11 Cent/kWh above the market rate for up to ten years from their installation on. The incentives were financed by a levy of EUR 0.1-0.15 Cent/kWh for households, and EUR 0.5 Cent/kWh for industry (consuming more than 100 000 kWh).

Related policies:National Energy Action Plan (NREAP)

Last modified: Mon, 12 May 2014 16:19:34 CEST