In order to promote combined heat and power (CHP) production facilities utilizing renewable energies, district heating, heat and cold storage, and limit CHP from hard coal and brown coal until absolutely essential, the law on cogeneration amends the 2002 Combined Heat and Power Act. It explains how the money, which was raised from €750 million to €1.5 billion, will be utilized to assist both new and current installations. The price of electricity is determined by the market, and subsidies are tacked on. By 2020 and 2025, net electricity from cogeneration plants should reach 110 TW/h and 120 TW/h, respectively.
By 2020 and 2025, net electricity from cogeneration plants should reach 110 TW/h and 120 TW/h, respectively. Projects covered by the program include freshly built and "modernized" facilities with an emphasis on greater energy efficiency. Although there are exceptions for sites with a capacity under 100 kW and installations used by industrial consumers, subsidies are mostly focused on plants serving the national supply grid. Plants adhering to the Greenhouse Gas Emission Trading Law are given additional incentives, while projects that disposed of coal or lignite are given an additional €0.6 cents/kWh throughout the course of the funding period.