Germany plans to extend Combined Heat and Power Act until 2035

The German Federal Ministry for Economic Affairs and Climate Action (BMWK) intends to extend the Combined Heat and Power Act (KWKG) until 2035. According to a recently published position paper, this extension aims to provide greater planning security for operators of combined heat and power plants, heating networks, and heat storage systems.

The proposed amendment seeks to increase investment security, improve the flexibility of combined heat and power systems, and reduce overall system costs. Under the new guidelines, subsidies would be available for new and modernized combined heat and power plants, as well as heating networks and storage systems, provided they enter continuous operation by the end of 2035. For projects in the tender segment, awards are expected to be made until the end of 2031.

Additionally, the ministry plans to increase funding limits for heating networks. The award limit per project for the new construction and expansion of heating networks is proposed to rise from 50 million to 100 million euros. The total limit for heating networks and heat storage systems would increase from 150 million to 400 million euros.