‘Disappointed’ OMV place cogeneration plant on hold

The Austrian energy company behind a 850 MW gas-fired combined heat and power plant has expressed disappointment with the German government for its decision to put the plant on hold.

OMV’s Haiming gas-fired combined heat and power plant project in southern Germany is now in limbo and the company told ICIS website that the decision came about due to what they referred to as disappointing CHP reform proposals from the German government as well as adverse economic conditions.
The plant was previously expected to come online between 2017 and 2019.

The German government does plan to increase CHP subsidies against a backdrop of low wholesale electricity prices. However, it has decided to focus the subsidies on keeping existing CHP plants online rather than funding the construction of new plants, because focusing on both would be too expensive for the public budget.

A final decision was to be made this year on the plant but the spokeswoman said on Monday “it is now not known” when that decision will be taken.

Last month, Germany’s economic affairs ministry said its CHP reform proposals could be published before the start of August. However, it now expects to publish them in September as part of one package, which will also include proposals for the new power market design, known as power market 2.0, and additional measures needed for achieving Germany’s 2020 climate targets.

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