Germany to provide cross-border support for CHP as well, renewables successful

The lower and upper houses of the German parliament have approved future cross-border support for combined heat and power projects. Applicants from neighbouring countries, such as the Czech Republic, will also be able to participate.

Following this year's introduction of rules for cross-border support for renewable energy sources and the first successful auction with Denmark, a system for cross-border support for combined heat and power will also be introduced in the coming years.

The explanatory memorandum shows that, as with support for renewables, the conditions are the reciprocal opening of support schemes and an international agreement between Germany and the other party. The system will be open to neighbouring countries for up to 5% of the total installed capacity subject to standard German auctions.

Another condition is that there must be a genuine possibility to import electricity from the neighbouring country into Germany. This condition is defined in the same way in the renewables support regulation and is relatively vague given the possibility of verifying compliance with it (as was also confirmed by the explanatory memorandum to the regulation on cross-border renewables support).

For now, this law sets out only the basic conditions for cross-border support for CHP; the entire system will be described in greater detail in a regulation that has yet to be approved. However, it can be assumed that the system will be similar to that for renewables.

In addition, the new law introduces an obligation for all CHP electricity producers from 1 MW to 50 MW to participate in auctions in which they will compete for support. Another relief measure is a reduction in renewable support levies for CHP where the electricity is intended for self-consumption.

First cross-border renewables auction results in a price of 5.38 euro cents/kWh

Last month, the results of the first cross-border auction with Denmark were also announced, with a total of 50 MW of electrical capacity auctioned. Five bids were selected in total, with the generating facilities located in Denmark. The final price was awarded at 5.38 euro cents per kWh (approximately CZK 1.45/kWh).

A total of 43 bids with combined capacity of 297 MW were submitted to the auction.

This represents an even lower price than in the German auction held in August. In August, an auction exclusively for generating facilities located in Germany closed at 7.25 cents/kWh (CZK 1.95/kWh).