Processing instructions and implementation aids for KWKG and other levies

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The implementation aid describes:

  • the implementation of the promotion of electricity from CHP plants,
  • the promotion of the construction and expansion of heating and cooling networks,
  • the promotion of the construction and expansion of heat and cold storage facilities and
  • the nationwide equalization of subsidy payments between grid operators.

The implementation aid is available for download in German on the BDEW website under Energie > Umsetzungshilfen EEG / KWK-G in the “Attachments and materials” field on the right.

The transmission system operators have also drawn up an implementation guide in German for the adjustments to CHP/ONU implementation as part of the legislative changes brought about by the EnFG:

Note Reason for correction § 20 Para. 1 No. 7 EnFG

When submitting subsequent corrections in accordance with Section 20 (1) EnFG, a corresponding reason for correction must be stated. With regard to the reason for correction in accordance with § 20 Para. 1 No. 7 EnFG, the transmission system operators process corresponding corrections with the principle published in German here, which applies to subsequent corrections in accordance with the EEG and the KWKG.

Billing of the KWKG and offshore grid levy at offtake points for which an application has been made to the Federal Office of Economics and Export Control (BAFA) for a cap for 2023 in accordance with Sections 63-68 of the German Renewable Energy Sources Act in the version applicable on December 31, 2022, but the application has not yet been approved or rejected.

Until 2022, the billing of the EEG, KWKG and offshore grid levy at offtake points for which an application to limit the levies was submitted to the BAFA by the end consumer in accordance with Sections 63-68 of the Renewable Energy Sources Act in the version valid on December 31, 2022 was generally carried out by the transmission system operator. The previous regulation will be adopted analogously in the Energy Financing Act (EnFG) from 2024. Although Section 67 (1) EnFG provides for a transitional regulation for 2023, it does not include the addition that this transitional regulation should also apply to applications that have been applied for but not yet approved or rejected.

In order to close this loophole, the transmission system operators have agreed with the Federal Network Agency. Accordingly, the processing for 2023 is to be carried out in the same way as in the past.

KWKG remuneration categories

The KWKG remuneration category table is a list that contains all the different possible combinations of criteria that are relevant for the surcharge payments for CHP plants under the current KWKG. This table is updated regularly, for example when there are changes to the law or new provisions are issued in accordance with the statutory powers to issue ordinances. The designations in the KWKG remuneration category table also serve as the basis for the reporting obligations that distribution system operators must regularly fulfill vis-à-vis the transmission system operators.

The current KWKG remuneration category table with possible remuneration combinations and corresponding explanations can be found below as an Excel file.

KWKG remuneration category table (in German)

Status 12/20/2023

Note:

The table contains all categories of surcharge payments under the Combined Heat and Power Act, subject to those provisions that may only be applied following approval under state aid law in accordance with Section 35 (19) KWKG. In addition, statutory regulations from previous laws must be observed, insofar as these continue to apply through corresponding transitional provisions in the current law. In addition to the subsidies for systems and cooling/heating grids/storage systems from calendar year 2027 mentioned there, the bonus under Section 7b KWKG for electric heat generators (“power-to-heat bonus”), which will apply from 2025, is temporarily subject to approval under state aid law.
The table also contains categories for penalty payments for breaches of obligations in accordance with Section 52 (8) EEG 2023 if CHP plants violate technical requirements. The payments are recorded via the KWKG monthly/annual reports and testing, although any income is transferred to the EEG account of the respective TSO for regulatory reasons in accordance with the EnFG and thus benefits the EEG equalization mechanism.