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German CHP sector receives further support from Government actions


14 Mar 2013



The German government’s latest policy changes aimed at  giving a further boost to the German CHP sector are the subject of COGEN Europe‘s latest European Cogeneration Review (ECR) published today. The ECR highlights specifics of the German CHP approach and identifies the areas of most dynamic growth.
The German government has set itself a binding CHP target of 25% cogenerated electricity in total power production by 2020, as part of its Energy and Climate efforts. However, due to several impacting factors including EU energy market liberalisation, economic slowdown in Europe and the unfavourable gas prices, growth in the sector has been weak relative to the needed 25% trajectory during the past few years.
Policymakers in Germany are nevertheless committed to mitigating this by improving the existing policy instruments. In 2012, recast legislation brought about enhanced measures for CHP. The 2012 CHP Law features higher premiums for electricity produced in CHP mode, re-states the priority access to the grid principle and gives support for heat networks and storage. Moreover, the 2012 Renewable Energy Law introduces an obligation on biomass electricity producers which enhances the opportunity for CHP. These measures, along with the Renewable Heat Law, the micro-CHP Incentive Programme and others, are considered to positively contribute towards closing the gap between the current level of 15,4% CHP share in total power production and the 25% target to be attained by 2020 and to boosting growth in key sectors.
The ‘European Cogeneration Review – Germany’ is the third report in a series which COGEN Europe will publish throughout 2013. The report is available to order on
For more information please contact:
Dr Fiona Riddoch, Managing Director
Tel: +32 2 772 8290
Fax: + 32 2 772 5044
      Stefan Craenen, Communications Manager
Tel: +32 2 772 8290
Fax: + 32 2 772 5044
About cogeneration:
Cogeneration (also known as CHP or Combined Heat and Power) is the simultaneous production of heat and electricity. 11% of Europe’s electricity and associated heat requirements today are produced using this proven energy efficiency principle. The estimated growth potential for cogeneration is a further 110-120 GWe which will lead to an improved environment and greater economic competitiveness in Europe. Cogeneration units can be found in different sizes and applications: industry, households and tertiary sector and spans applications with capacities ranging from below 1kw to hundreds of Megawatts. It is a highly efficient energy solution that delivers energy savings and substantial reductions in CO2 emissions. When seriously supported, as in Denmark, CHP has the potential to increase the energy production and transformation system overall efficiency from a bare 33% (EU average) up to 65%. Realising the potential of cogeneration in Europe will contribute significantly to reaching the strategic climate and energy goals, such as security of supply, energy efficiency and reduction of emissions.
About COGEN Europe:

COGEN Europe is the European association for the promotion of cogeneration. We represent 70 organisations which are National COGEN Associations, manufacturers, users, utilities and service companies. Currently around 100,000 Europeans are employed in the cogeneration sector. More info on




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