19.02.2024
Source: Energy & Management Powernews
Although there is a power plant strategy, the CHP sector is relying on a swift amendment to the Combined Heat and Power Act.
In contrast to the 2023 draft, neither biomass plants nor CHP power plants are mentioned in the current power plant strategy. In addition, the amendment of the Combined Heat and Power Act (KWKG), which expires in 2026, is still pending. As a result, many people are currently unclear about where CHP will fit into the energy system of the future. At the leading trade fair E-world 2024 in Essen, the power plant strategy and the KWKG amendment will therefore be key topics at the stand of the German Cogeneration Association (B.KWK).
Even with a high proportion of renewables, residual load demand will remain. "This is where I see the place of combined heat and power generation in the future," says Daniel Schäfer, sales engineer at Zeppelin Power Systems. "Volatility is constantly increasing. The growing demand for electricity from heat pumps in the building sector and e-mobility in the transport sector will intensify this trend in the future," adds B.KWK President Claus-Heinrich Stahl. This makes it all the more important to have quickly controllable output in order to cover energy peaks.
Natural gas is not a prospect
In contrast, Stahl sees no prospects for natural gas as a fuel for CHP power plants. "However, it is difficult to say today whether there will be enough renewable fuel available in the future to switch CHP completely to renewable fuels. Currently and in the medium term, demand outweighs supply," says Stahl. All the more reason to use fuels such as hydrogen, biomethane or biogas as efficiently as possible. "In contrast to uncoupled gas turbines with efficiencies of up to 40 percent, CHP power plants make highly efficient use of up to 90 percent of the fuel used. This gives CHP both ecological and economic advantages," says Stahl.
In future, however, CHP plants will usually be coupled with other technologies, such as photovoltaics, heat storage or heat pumps. Both Schäfer and Stahl see this development. "Heat pumps and CHP are a dream team," says Schäfer. He continues: "Heat pumps are less efficient and economical at very low temperatures. CHP is an ideal supplement for these phases. The CHP system can take over when the electricity price is very high." Although the acquisition costs for the combination are higher, they pay for themselves over time,
Why the CHP sector is holding back
According to Claus-Heinrich Stahl and Daniel Schäfer, a certain reluctance can be observed in the sector with regard to the current market. One of the reasons for this, according to the experts, is that CHP plays no role in the German Building Energy Act (GEG), which came into force in January.
In contrast, an opportunity for CHP lies dormant in municipal heat planning, where CHP could provide useful heat for the general heat supply.
In addition, the currently unclear perspective of the German Combined Heat and Power Act (KWKG) is causing uncertainty. This is because the KWKG, which regulates the feed-in and remuneration of electricity from CHP plants, ends in 2026 without any reliable future prospects. B.KWK President Stahl explains: "Investment security must be created for CHP power plants. The same applies to investments in hydrogen capability for new plants and retrofitting. Both must be economically viable and properly reflected in a funding structure that works via performance-based remuneration."
It is therefore important that the negotiations for the extension and adjustment of the expiring KWKG proceed quickly. "When redesigning the KWKG, the focus must be on the subsidized shorter annual full utilization hours of CHP power plants. These will be reduced even further in future in order to supply electricity and heat precisely when wind and sun are not available in the renewable energy system of the future. To achieve this, we need a new KWKG funding system." According to Stahl, an amendment to the KWKG should be initiated by the 2024 summer break.
KWKG: tailwind from Europe
A recent ruling by the European Court of Justice (ECJ) is likely to have a major influence on the design of an amendment to the KWKG. In January, it ruled that the KWKG subsidy does not constitute state aid. "The legal dispute between the German government and the EU Commission has had a very positive outcome for the energy sector and paves the way for CHP to become part of the energy system of the future," explains Stahl. There are no longer any reservations under state aid law regarding the further development of the KWKG.
Author: Heidi Roider
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