Combined Heat and Power Act (CHP Act)
Act on the Retention, Modernisation and Extension of Combined Heat and Power Generation (CHP Act of 21st December 2015 amended on 22nd December 2016)
On 1 April 2002, the Act on the Retention, Modernisation and Extension of Combined Heat and Power Generation (KWKG) has entered into force replacing the CHP Act of 18th May 2000. On 21st December 2015 and 22nd December 2016 the CHP act has been amended anew.
Pursuant to this CHP Act, the CHP-share of the electricity volume produced (CHP electricity) that is fed into grids of all voltage levels for general supply is subsidized. The system operator who is obliged to take in the electricity pays an extra charge, which is dependent on the plant type. A compensation is also paid for CHP electricity not injected into the public supply grid . The CHP Act also regulates the support of construction and expansion of heating and cooling grids and storages.
The Federal Association of the German Energy and Water Industries (Bundesverband der Energie- und Wasserwirtschaft e.V. / BDEW) publishes a procedural description on how to establish a standard national procedure for handling and implementing the act, including official material. This procedural description as well as additional useful information on CHP is available on the website of the Federal Association of the German Energy and Water Industries (Bundesverband der Energie- und Wasserwirtschaft e.V., BDEW).
Further useful information concerning the CHP Act and its procedure, forecasts and accounting can be found on the common German TSOs’ website:
For further queries regarding the CHP Act, please contact us:
Please note that we assume no responsibility for the accuracy of the information in the documents provided.