CHP sector annoyed about expiring grid fee remuneration

12.06.2025

Source: E & M powernews

The CHP sector is fighting for its influence in the future energy system. At the 23rd symposium of the federal association, the plans of the Federal Network Agency and the wishes of the companies clashed.

The German government should provide operators and developers of CHP plants with long-term planning security. This is a key demand made by the German Cogeneration Association (B.KWK) during its 23rd CHP Symposium on June 11 in Duisburg.

Basically, the association is hoping for a slice of the new power plant pie, whose 20,000 MW the Federal Energy Minister Katherina Reiche (CDU) wants to realize via gas-fired power plants. However, B.KWK President Claus-Heinrich Stahl has noted with interest the developments according to which the power plant strategy in Berlin is starting to move.

"There's nothing in it for us at the Federal Network Agency"

"Our manufacturers," said Claus-Heinrich Stahl in his welcoming speech in Duisburg, "can install 6,000 megawatts a year." This potential should not be underestimated, especially as over 20,000 MW of power plant capacity will have to be replaced with the coal phase-out. A further amendment to the CHP Act would have to reflect the many advantages of controllable systems and provide appropriate remuneration for grid-supporting services. However, the perspective promised by law by 2035 is locked away in a drawer.

Stefan Lochmüller also turned to Berlin with clear expectations. The energy policy officer at Nuremberg-based utility N-Ergie emphasized the "systemic added value" of CHP plants. The update of the CHP Act at the end of last year was at best an "emergency repair". The revision was "overdue".

Stefan Lochmüller spoke after Stefan Dunke, the expert for thermal power plants and storage facilities at the Federal Network Agency (BNetzA). The Nuremberg-based official was not sparing in his criticism of the Bonn-based regulatory authority. There is "nothing in the BNetzA's regulatory considerations for us", he said with regard to the issue of remuneration for avoided grid fees. A large number of decentralized generation plants receive remuneration for not drawing electricity from the upstream grids with their energy production. This system is to be gradually phased out by the end of 2028, much to the industry's displeasure.

Lochmüller criticized the threat of a loss of capacity, especially as the rapid expansion path of 20,000 MW by 2035 outlined by Katherina Reiche is "completely unrealistic". Because "no one will want to feed in at peak load" under the changed subsidy regime from 2029, there is a risk of a feed-in problem. Outside of the tendering rounds, "market-driven plants have not been built for five years. Ignoring this is not the way we should be dealing with each other," said Stefan Lochmüller.

Stefan Dunke pointed out on behalf of the Federal Network Agency that the objections of associations and companies to future CHP regulation were being examined. His authority has doubts that the expansion of the grid can actually be significantly reduced by decentralized CHP. Loads would have to be covered and CHP plants would also have to be serviced and maintained. However, this does not have to take place at peak load times.

On behalf of the Federal Network Agency, Stefan Dunke provided an insight into the current round of tenders for CHP and innovative plants (iKWK) as of June 1. Without being able to assess the admissibility of each bid, he already assumes that the already increased tender volumes have been oversubscribed. The volume for CHP plants amounted to 89.98 MW, with bids for a total of 146 MW received. Bids totaling 75 MW had been received for the planned 29.97 MW of CHP plants. "We've never had this much before," says Dunke.

N-Ergie's policy officer Stefan Lochmüller threw even more positive figures into the mix. CHP plants have doubled their share of controllable electricity generation since 2014, from 23% to 46% in 2024. "We supply power and work when it is needed," he said. Accordingly, the 20,000 MW capacity with 3,000 full-load hours per year that Berlin is aiming for has "a lot of potential for CHP plants", including those with 500 hours. The industry needs security "that is not called into question every two to four years".

Author: Volker Stephan