“Cabinet approves important energy policy projects”

The federal cabinet today decided on reform drafts for two energy policy projects:
The law regulating state support for combined heat and power (CHP) plants will be changed to include tenders for CHP facilities with a capacity of 1-50 megawatts, according to a press release by Federal Ministry for Economic Affairs and Energy (BMWi).
Changes to the Renewable Energy Act (EEG) mean that power produced for self-consumption from old facilities will continue to be exempt from the renewables surcharge, while a reduced amount would have to be paid in case of modernised facilities. Electricity from new fossil-fuel-powered facilities – even if used for self-consumption – will be charged with the full renewable surcharge.
The changes to the relevant legislation became necessary after the federal government had struck a deal with the EU Commission on state-aid related aspects of Germany’s new power market law and other energy policy issues. The economy ministry plans the reformed legislation to be enacted by 1 January 2017.

Read the press release in German here and the legislation draft in German here.

For background read the CLEW article Agreement with EU Commission clears way for German power market reform.