The Federal Ministry for Economic Affairs and Energy (BMWi) has published the draft version of its combined heat and power auction legislation (KWKAusV). Under the draft, operators of combined heat and power (CHP) plants rated over one megawatt would no longer automatically receive CHP funding, but would participate in an auction process.
The legislation introduces an auction model for “innovative” CHP plants and systems in the 1–50 MW segment. Support will continue to be provided as a set additional payment in cents per KWh, however the level of support will be set via an auction process. The competitive tendering process provides an opportunity to reach the build-out targets cost-efficiently and improve cost transparency, the ministry writes. The auctions are set to begin on December 1st, 2017 and then be held every 6 months for an annual installed CHP capacity of 100 MW.
They will be open to a limited extent to other European countries, in particular in order to strengthen cooperation with Germany’s “electrical neighbours”, the ministry’s website states.