The legal framework conditions applicable to CHP systems are multifaceted. The most relevant laws are:

the Federal Immisson Control Act [Bundes - Immissionsschutzgesetz, BImSchG]
the Combined Heat and Power Act [Kraft-Wärme-Kopplungsgesetz, KWKG]
the Renewable Energy Sources Act [Erneuerbare Energien Gesetz, EEG]
the Energy Tax Act [Energiesteuergesetz, EnergieStG]
The purpose of the BImSchG is to protect the environment, human beings, animals or any other material goods against harmful effects on the environment and to prevent such effects. If the approval pursuant to the BImSchG is required for the system, the Act also stipulates the compulsory precautions that need to be taken in order to achieve a high level of protection against harmful effects on the environment, whether caused directly or indirectly by the system.

The Combined Heat and Power Act (KWKG) sets forth that the operator of a CHP system is entitled to a bonus, known as CHP bonus, for every kilowatt hour of power it generates. Depending on the electrical power, the promotion is limited to a specified duration.

The goal of the Renewable Energy Sources Act or EEG is to promote the generation of energy in a sustainable fashion, with the protection of the environment and climate, the conservation of fossil raw materials, the economic costs for the energy supply and further development of renewable energy supply technologies in mind. The federal government aims to increase the proportion of renewable energies to 80% of the gross power consumption of the Federal Republic of Germany by 2050.

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