Combined Heat and Power Act

KWKG levy from 1 January 2027 (Section 10 EnFG in conjunction with the KWKG)

Pursuant to  KWKG, the CHP-share of the electricity volume produced (CHP electricity) that is fed into grids of all voltage levels for general supply is subsidized. The system operator who is obliged to take in the electricity pays an extra charge, which is dependent on the plant type. The law also provides for bonus payments to plant operators that are tied to certain conditions (e.g. coal replacement bonus and bonuses for innovative renewable heat and electric heat generators). A compensation is also paid for CHP electricity not injected into the public supply grid. KWKG also regulates the support of construction and expansion of heating and cooling grids and storages.

According to §26 KWKG in conjunction with §12  EnFG, the network operators are entitled to charge the costs for the expenses caused by the Act in the calculation of grid charges as a surcharge (KWKG levy). The KWKG levy is applied nationwide and is determined by the transmission network operators on the basis of the forecasts reported by the DSOs as well as by the Federal Office for Economic Affairs and Export Control (BAFA).

KWKG levy for nonprivileged consumption 2027:

Year KWKG Levy
2027 0.451 ct/kWh

Special provisions of §§21 – 39 EnFG shall be applied to the energy consumptions of privileged consumers.

Overview on KWKG levy/surcharges since 2002 you can find  here.

Further useful information concerning KWKG levy you can find on the  German TSO’s website.

Nationwide implementation of the KWKG

The Federal Association of the German Energy and Water Industries (Bundesverband der Energie- und Wasserwirtschaft e.V. / BDEW) publishes a  procedural description on how to establish a standard national procedure for handling and implementing the act, including official material. This procedural description as well as additional useful information on CHP is available on the website of  BDEW.

Further useful information concerning KWKG and its procedure, forecasts and accounting can be found on the common German TSOs’ website:

 www.netztransparenz.de

Important information on subsidies according to KWKG and the limitation of the CHP levy for electricity-intensive companies is available at the website of the Federal Office for Economic Affairs and Export Control  https://www.bafa.de. The monitoring of the proper implementation of the KWKG and associated compensation mechanism by the network operators is the responsibility of the Federal Network Agency ( Bundesnetzagentur/BNetzA) in accordance with §31b KWKG resp. §62 EnFG.

§32a KWKG defines the purpose of the  Clearingstelle EEG|KWKG as a facilitator, helping "to avoid and to settle any disputes". Clearingstelle EEG|KWKG provides general advice on how to apply the provisions of the CHP Act.

For further queries regarding KWKG, please contact us: liaM-E