Policy status:In Force
Date Effective:2009
Policy Type:Economic Instruments>Fiscal/financial incentives>Grants and subsidies
Policy Target:Energy Utilities>CHP
Agency:Federal Ministry for Economics and Labour

Austrias Combined Heat and Power Law (CHP Law - KWK Gesetz) took effect in early 2009, to promote CHP through the partial reimbursement of operating expenses for new and modernized CHP plants for public district heating, and promoting investment grants for new CHP plants (except those covered by the Green Electricity Act). New or modernized CHP plants for public district heating can receive investment subsidies, if they result in savings in energy and CO2 emissions compared with separate production of heat and electricity. An efficiency formula is used to determine whether savings occur. From 2006 to 2012, EUR 55 million are available for the subsidies, with 30% allocated to cogeneration plants for industrial use. New plants for which permits are received by 30 September 2012 and are in operation by 31 December 2014 can receive investment subsidies up to 10% of the total funds needed. Plants up to 100MW can receive a subsidy of EUR100/kW; those between 100 and 400MW EUR60/kW; and those above 400MW up to EUR40/kW. Existing or modernized plants can receive subsidies in EUR cents/kWh based on several cost parameters, such as fuel costs, operation and maintenance costs, adequate return on employed capital, pension payments, administrative costs and taxes.

This record supersedes:Combined Heat and Power (CHP)

Last modified: Wed, 15 May 2013 18:22:44 CEST