German Bundestag approves changes to CHP bill

The German parliament (Bundestag) has voted for a government bill to change regulations for combined heat and power (CHP) electricity production, including amendments by the economy ministry (BMWi).

A press release by the ministry stipulates that new and modernised CHP plants with a capacity from 1 to 50 megawatt will have to successfully participate in a bidding process before they are eligible for support. The subsidy amount will be determined by the bids, ensuring that “the most economic projects” receive support.
Bidding processes will “to a limited extent” be opened for projects in neighbouring countries in order to foster regional cooperation. The parliament also approved exemptions from the renewables surcharge for power produced by industrial firms for self-consumption with existing plants, unless these are modernised “substantially”.

The subsidy will continue to be granted in the form of a fixed surcharge. The amount of the supplementary payment will, however, be determined competitively by tender in the future.

Innovative cogeneration systems will also be introduced as a new promotion category and calls for tenders are expected to start in the winter half year 2017/18.

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