Germany wants to reduce its greenhouse gas emissions - and combined heat and power (KWKG) plays an important role in this. This is because combined heat and power plants (KWKG plants) use the fuels used more efficiently by also utilizing the heat generated in parallel with electricity generation. The thermal energy can then be used by consumers for heating, for example.

Combined Heat and Power Act

This particularly efficient generation of electricity and heat is promoted by the Combined Heat and Power Act (KWKG): The law provides for a levy to create incentives to generate more electricity from KWKG. The levy is part of the electricity price: grid operators pay a levy to the plant operators for the electricity generated - and then refinance this levy through a levy on the grid fees.