Policy status:Superseded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

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).

Related policies:National Energy Action Plan (NREAP)

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