Potential for CHP as Germany mulls moderating coal levy law

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The possibility of the German government moderating its proposed coal levy may open the door for more the use of more combined heat and power technology in the country.

A government document, revealed to Reuters, shows a softening in Germany’s approach to forcing harsher emission targets on ageing coal-fired power plant looks lilely to benefit the CHP sector.
The economy ministry is said to be planning to require coal-fired power plant operators to cut their emissions by 16 million tonnes by 2020, compared with a previous target of at least 22 million tonnes. Although not yet approved, government sources told the news agency that now plans to achieve the remaining six million tonnes of CO2 emission cuts for the energy sector by promoting the use of more environmentally-friendly combined heat and power plants.

An official in the German combined heat and power industry has told COSPP they consider the move to be ‘an extremely interesting development.’

The source who prefers to remain unnamed told COSPP, “a non-official government paper indicates that the CHP budget may be raised up to €1.5bn from its current €750m. The CHP contribution for end costumers will raise accordingly up to 0,75 cents /kWh. The aim is to push out coal and replace it with Gas CHP.”

COSPP is awaiting a reply from the German government on the subject.

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