Germany clears way for draft law on CHP generation
Date: 17-Aug-01
Country: GERMANY
The Cabinet had agreed in principle to the draft legislation last month.
"The way is free for the Cabinet's agreement on the draft law this week and the ensuing discussion in the Bundestag (lower house)," government sources told Reuters.
Environment Minister Juergen Trittin (Green Party) and Economics Minister Werner Mueller (independent) agreed this week that support for CHP should be limited to a timeframe ending in 2010, with the exception of CHP plants that generate electricity from fuel cells.
Trittin had opposed a time limit on support for CHP, but Mueller argued that without a limit existing CHP power producers would have no incentive to modernise their plants.
The ministers also agreed that the the Bundesrat (upper house) should not be able to veto the draft legislation, thus speeding up its passing into law.
The CHP law is expected to come into force in 2002.
CHP uses excess energy from power generation to heat buildings, thereby increasing overall energy efficiency. The technology produces fewer emissions than do conventional power stations.
Germany's climate programme aims for a 23 million tonne annual cut in carbon dioxide emissions by 2010 through CHP production, as part of the total 45 million tonnes per year reduction target.
The scheme entails extra payments to CHP operators of initially three pfennigs per kilowatt hour (pf/kWh), which will be borne by all consumers across the supply chain.
Consumers will pay around 0.2 pf/kWh more for their electricity.
The law will also provide respective sums of five pf/kWh and 10 pf/kWh in support for CHP plants used for decentralised power supply and those that use fuel cells.
Total investment in CHP is expected to total around eight billion marks ($3.67 billion).