Act on Combined Heat and Power Generation

The Act on the Conservation, Modernization and Development of Combined Heat and Power ("Gesetz für die Erhaltung, die Modernisierung und den Ausbau der Kraft-Wärme-Kopplung") entered into force on April 1, 2002.

More information about the levies, plus annual forecasts, surcharges and annual statements of accounts, is available at the joint website of Germany’s TSOs.

The purpose of the act is to make a contribution to the increase of electricity production from combined heat and power in the Federal Republic of Germany to 110 terawatt hour in 2020, respectively 120 terawatt hour in 2025, in the interest of energy saving as well as environmental and climate protection.

This act regulates the procurement of and compensation for power and heat combined current (German abbreviation: KWK Strom) from power stations with combined heat and power installations on the basis of coal, lignite, waste, waste heat, biomass, gaseous and liquid fuels as well as additional fees for the building and expansion of heating/cooling networks, heating/cooling storage provided that the combined heat and power installations, and the heating/cooling networks and storages fall within the scope of application of the act. Combined heat and power electricity that is compensated for pursuant to the Renewable Energy Sources Act does not fall within the scope of application of this act.

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