Motion and Report on Draft Amendment to the Combined Heat and Power Act
Bundestag Document 20/14776
2023-01-29
Introduction
On January 29, 2023, the Bundestag issued Motion and Report 20/14776 regarding a draft law to amend the Combined Heat and Power Act (KWKG). The draft law, originally proposed by the CDU/CSU parliamentary group (Document 20/13615), aims to adapt the KWKG to current and future challenges in the energy sector.
Key Changes
The draft amendment proposes several key changes to the KWKG:
- Extension of KWKG support: The support period for existing combined heat and power (CHP) plants is extended until December 31, 2025, and support for new CHP plants is extended until December 31, 2027.
- Increase in support rates: The support rates for CHP plants are increased to reflect the rising costs of energy and the importance of CHP in achieving climate targets.
- Simplified funding application process: The process for applying for KWKG support is simplified to reduce administrative burdens and make it easier for operators to access funding.
- Inclusion of renewable energies: The definition of CHP plants is expanded to include plants that use renewable energy sources, such as wind and solar power, in addition to conventional fuels.
- Increased flexibility: The KWKG is amended to allow CHP plants to operate more flexibly in response to fluctuations in the electricity and heat markets.
Rationale
The proposed amendments to the KWKG are justified by the need to:
- Ensure the continued operation of existing CHP plants, which play a vital role in providing reliable and efficient energy supply.
- Incentivize the construction of new CHP plants, which are essential for reducing greenhouse gas emissions and achieving climate targets.
- Adapt the KWKG to the changing energy landscape, including the increasing use of renewable energy sources.
- Reduce administrative burdens for CHP plant operators.
Motion and Report
The Motion and Report 20/14776 provides a comprehensive assessment of the draft amendment to the KWKG. The Committee on Economic Affairs and Energy recommends that the Bundestag approve the draft law, with minor amendments. The Committee finds that the proposed changes are necessary and appropriate to address the challenges facing the CHP sector and to ensure its continued contribution to a secure and sustainable energy supply in Germany.
Next Steps
The draft amendment to the KWKG is currently under discussion in the Bundestag. It is expected to be voted on in the coming months. If approved, the changes will come into force on January 1, 2024.
20/14776: Beschlussempfehlung und Bericht zu dem Gesetzentwurf der Fraktion der CDU/CSU – 20/13615 – Entwurf eines Gesetzes zur Änderung des Kraft-Wärme-Kopplungsgesetzes (PDF)
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