Germany seeks power boost from new CHP tender

The German government has published regulations for planned auctions for the country’s combined heat and power plants.

The auctions are designated to attract CHP with up to 50 MW in capacity, with 100 MW on offer in the first auction set for December 2017.

According to a first draft of the regulation based on last year’s reform of the CHP bill (KWKG 2016), the energy ministry plans two auctions each year for 100 MW each time.
Bundestag in session
Last year’s KWKG 2016 bill is set to boost electricity output from CHPs to 110 TWh by 2020 and 120 TWh by 2025 as well as improving support mechanisms for new gas-fired CHP plants.

Platts reports that new-build gas-fired CHP projects that replace an older coal-fired CHP unit will receive an additional bonus while existing coal and lignite-fired CHPs will no longer receive support through this mechanism.

The reform bill also introduced a new tender process for government support for new CHP units between 1 MW and 50 MW of capacity.

Following approval by the EC, the bill was passed at the end of last year with the ministry’s draft regulation now in the consultation phase until June.

Germany’s potential CHP capacity is near 50 GW ranging from large-scale new-built coal-fired units like the 900 MWe GKM 9 plant at Mannheim to mid-sized municipally-owned urban CHP units down to small-scale or even micro- units, data from Platts Powervision shows.

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