Amendment to Section 19 of the CHP Tender Ordinance (KWKAusV)

Source: Energie & Management Powernews, October 17, 2022

For innovative CHP systems, a change in terms of reference heat comes into force, which now allows operators to commission the plant easier even during the year.

For operators of innovative CHP systems, the commissioning is now easier. The change of the § 19 of the KWK-Ausschreibungsverordnung (KWKAusV) makes that possible. This amendment is part of the recently adopted legislative package to amend the Energy Security Act and other energy industry regulations. Specifically, it concerns the calculation of the reference heat in an iKWK system.

A subsidized iKWK project requires that about one-third of the energy produced in these plants come from renewable sources. Until now, the reference heat had to be calculated in relation to the entire calendar year. Its renewable share of 30%, or 35% since 2021, may not be undercut even in the year in which the CHP plant is permanently commissioned. This led to operators commissioning their CHP plants only at the beginning of the year in order to meet the required reference heat. The official start-up was therefore sometimes delayed by several months.

The regulation has now been changed by the legislature to a monthly calculation method. Specifically, the change means that in 2023 - for bids starting in 2021 - instead of the previously valid value of 30% of the reference heat, operators will only have to prove 2.5 percentage points of the innovative share of the reference heat in the annual statement for each full month following the date of permanent commissioning, even in the commissioning year.

New regulation applies retroactively to December 1, 2021

The German Cogeneration Association is satisfied with the new regulation. "The B.KWK and the associations cooperating with it are pleased with the regulation for iKWK systems, the monthly determination of the mandatory share of innovative heat shares retroactively to December 1, 2021 to enter into force," communicates the association in this regard on October 14. This provides planning and investment security for investors and operators and helps to counteract the current energy crisis.

The B.KWK president, Claus-Heinrich Stahl, explains: "For operators of iKWK systems, this was an obstacle to profitability. The danger to remain under the 30 per cent and thus to lose the promotion was large. Therefore, until now, iKWK plants are not commissioned until the following year if they are completed after April." The B.KWK has long lobbied for this change, he said. "The legislator has recognized that the previous regulation ran counter to a rapid development of innovative CHP systems based on renewable energies. This hurdle is now removed and will help in the short term, as well as with a view to achieving climate targets, to stabilize Germany's heat and power supply."

For iKWK plants that have won a tender in 2021, however, a reference heat of 35% is prescribed, which is not included in the current amendment. According to the B.KWK, it is working on bringing about clarification here as well - if necessary via the Clearing House EEG / KWKG.

Author: Heidi Roider