Policy status:Superseded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)
Policy Target:Energy Sector>CHP
Agency:Federal Ministry for Economic Affairs and Energy
Legal References:Bundesgesetzblatt 2000, I, No. 22 (17 March 2000, p. 703-704)

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