Hydropower plant funding program

Funding conditions

What is subsidized?

Funding is available for upgrades with at least a 10 percent increase in capacity as well as upgrades requiring approval, recommissioning and (replacement) new constructions.

The following are eligible for funding

• Investment expenditure for technical and structural facilities
• proven expenditure for planning and engineering services, including acceptance of construction work, up to 20% of the total investment expenditure recognized as eligible for funding
• in the case of projects subject to approval under water law, investment expenditure for technical and structural measures required in the plant approval (animal welfare, ecology, minimum water flow, continuity)

The following arenot eligible for funding

• Expenditure that is not required to achieve the funding objective of "environmentally compatible expansion of power generation"
• Expenditure for land acquisition
• Expenses for dismantling and demolition work, fees and administrative costs
• Price reductions
• Expenditure for expenses not supported by proof of payment
• Own (management) services

Combination with funding programs other than the EEG 2023 is not permitted.

The group of grant recipients is open:

• natural persons
• legal entities under private law
• partnerships
• ecclesiastical institutions
• legal entities under public law, the indirect state and federal administration with their own legal entity, in particular
  • Municipal authorities (including their own and controlled enterprises)
  • establishments
  • foundations
  • chambers

if they are the owner or legal operator of the hydropower plant or transverse structure in Bavaria.

• The funding is provided as a grant.
• This amounts to up to 25 % of the investment costs.
• Planning costs can be taken into account with up to 20% of the total costs.
• The grant is also limited to the imputed profitability gap in accordance with theAnnex to the funding guideline.
• Electricity generation costs higher than 19.5 cents per kilowatt hour are not included in the calculation of the economic viability gap
• Higher electricity production costs than 50 cents per kilowatt hour lead to exclusion from funding
• The subsidy is limited to €300,000. This limit may have to be reduced by de minimis funding approved in the three previous years.
• 70% of the approved grant will be paid out after completion of the construction work
• 30% will be retained within the framework of a five-year earmarking period after the start of regular operations. During this period, the actual production and consumption data must be verified.

• Plant locations in Bavaria
• Upgrades (within the meaning of the EEG), recommissioning and (replacement) new builds
• New 20-year payment entitlement (feed-in tariff or market premium) is achieved through the subsidized measure
• At least 10% increase in capacity in the case of upgrading measures
• Calculation according to the annex of the funding line results in a profitability gap despite funding according to EEG 2023 (after completion of the measure)
• Approval under water law or registered existing right exists