Policy status:In Force
Date Effective:2002
Date Amended:


Policy Type:Regulatory Instruments>Obligation schemes , Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums
Policy Target:Energy Sector>CHP
Agency:Federal Ministry for Economic Affairs and Energy (BMWi)
Funding:Estimated total payments amount to EUR 4.45 billion between 2002 and 2010

This law replaces the 2000 law on combined heat power (CHP) ("KWKVorschaltgesetz"). Both laws are primarily intended to promote large CHP plants that were affected by decreasing electricity prices as a consequence of liberalisation. At the same time the share of CHP-produced electricity is to be increased, aiming at lowering CO2 emissions by 23 million tonnes by 2010. Half of this target is to be achieved by the CHP law, the other half by a voluntary agreement with industry. The importance of this law for renewable energy technologies is minor since the Renewable Energy Sources Act (EEG) provides more favorable conditions for these technologies. Only renewable energy technologies not covered by the EEG may benefit. This includes co-firing of biomass in fossil-fuelled power plants and biomass-fired CHP larger than 20 MW. The premium cannot be combined with other support, particularly not with the EEG. The incentives are financed by a levy: 0.1-0.15 Euro Cent/kWh for households, 0.5 Euro Cent/kWh for industry (consuming more than 100 000 kWh). From 1 January 2010 the levy amounts to 0.13 ct/kWh (consumption up to 100 000 kWh), 0.05 ct/kWh (consumption greater than 100 000 kWh), 0.025 ct/kWh (reduced levy for energy intensive industries consuming more than 100 000 kWh). As part of the energy package adopted 2011 by the Cabinet, the duration was extended from the year 2016 to 2020. On 19 July 2012 an amendment entered into force, increasing premia for electricity produced and improving conditions for heat grids and heat accumulators.

date effective: 2002

ammended: 2008/2011/2012

Last modified: Mon, 30 Oct 2017 12:36:19 CET