14.02.2024
Source: Energy & Management Powernews
The power plant capacity to be put out to tender for large central power plants has been significantly reduced in the power plant strategy. The CHP sector considers this to be an important step.
"We see the key points of the power plant strategy as a cautious sign from politicians towards the amendment and extension of the Combined Heat and Power Act, which expires in 2026," commented Claus-Heinrich Stahl, President of the German Cogeneration Association (B.KWK), on the power plant strategy presented by the German government. However, a rapid amendment to the Combined Heat and Power Act (KWKG) is needed to flank this. According to the CHP industry, backup capacities should not only be created through the construction of large central power plants, but also through decentralized plants.
The German government plans to invest 16 billion euros in hydrogen-capable power plants over the next 20 years. This is currently envisaged in the power plant strategy. In addition, a capacity mechanism is to take effect from 2028. Unlike in the 2023 draft, neither biomass plants nor combined heat and power plants are mentioned. The reduction in the power plant capacity to be put out to tender in the power plant strategy from 30,000 MW to 10,000 MW is therefore seen as an important step by the CHP sector. B.KWK recommends covering the additional capacity required via an amended CHP Act and biomass CHP
CHP peakers and budget-independent financing
The additional 15,000 MW required by 2030 should be covered by gas-powered decentralized CHP plants, preferably with biogas and, in the future, with hydrogen, according to B.KWK in its statement of 12 February. This requires an amended KWKG with investment funding for CHP peakers and budget-independent financing via the levy-financed KWKG. An extension of the KWKG until at least 2035 is considered essential in order to avoid delays that could hinder necessary investments.
"The German government has understood that backup capacities to cover dark doldrums are not best created by building large central power plants with long implementation times," says B.KWK President Stahl. We also see the fact that the power plant capacity to be put out to tender has been reduced to ten gigawatts as "an important step. It is important that these are installed at points that serve the main grid based on the tenders in order to create optimal peak load balancing and support grid expansion."
A certain reluctance can currently still be observed on the CHP market, according to the industry association. In addition to the uncertainty surrounding an amendment to the CHP Act that has been pending for months, one of the reasons for this is that CHP plays no role in the German Building Energy Act (GEG). However, there is an opportunity for CHP in municipal heat planning if it were to be considered as useful heat for the general heat supply.
Author: Heidi Roider
Accessibility
Language
