Germany passes CHP law

Germany has passed a law doubling its support for combined heat and power (CHP).  

The law was approved on Friday by the second chamber of the country’s parliament.

Under the law, which is expected to go into effect in early 2016, support for CHP plants will increase from €750m ($817m) to €1.5bn.

While energy minister Sigmar Gabriel said last week that the government aims to support gas-fired rather than coal-fired CHP in future, he reassured the owners of hard coal-fired plants that, under the new law, ministers will be able to support existing plants threatened with becoming uneconomical through bespoke bylaws.

Germany’s CHP trade body, the Bundesverband Kraft-Wärme-Kopplung, said the law will likely encourage steady but slower growth for CHP in the country.  

Germany has reduced its CHP target from 25% to 20% by 2025.

See also: German CHP plant owners offered insufficient incentive for fuel switch  

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