Positive forecast for CHP in post-election Germany

Germany will stage its general election on the 24^th September and there is debate about the potential impact on the country’s energy policy, once the victors are known.

Argus reports that the next government, tipped to remain headed by Chancellor Angela Merkel and the CDU, will most likely extend support for combined heat and power generation and look to increase electrification of the transport and heating sectors, while also replacing the renewable energy act (EEG).

Many commentators believe coal will continue to backbone the country’s electricity, unless a coalition involving Green Party participation arises. Despite the outgoing administration’s transformation of the energy sector over the last four years, major tasks lie ahead.

The next government needs to continue to implement Germany’s Energiewende as energy policy moves on from the power market design debate to future decarbonisation strategies as the ambitious GHG reduction target for 2020 — a 40pc reduction relative to a 1990 base line — approaches while other challenges include the increasing decentralisation and digitalisation of the German and the European power system.

The news site reports that based on an analysis of election manifestos, recent position papers and statements by party officials, Germany is likely to ease into the next phase of the energy transition rather than implement radical changes within the next four years.

Consensus is emerging on individual policies ahead of the election. The next government is likely to reduce the power tax, which now stands at €20.50/MWh, to €0.50MWh, in an attempt to reduce costs for electricity consumers and help incentivise the electrification of the transport and heating sectors. And mainstream parties back expanding support for highly efficient combined heat and power (CHP) generation, which would end in 2022 for next plants as it stands now.

Source: Decentralised Energy