CHP Industry

• Nº 1 in Europe with a market share of 36% for industrial and utilities applications
• 83.5% of total installed capacity for micro cogeneration units
• planned doubling of cogeneration use in electricity generation from present 12.5% to 25% in 2020
• high substitution potential in the utility, industrial and building sector

MARKET - Germany is setting the benchmark for high efficiency cogeneration technologies in the largest European cogeneration market through its outstanding supply chain and its high number of technology developing companies. For instance, 50 percent of all European technology developing companies for micro cogeneration are in Germany. 

PERSONNEL - A first-class university and R&D landscape and a renowned educational system make Germany fertile ground for innovation in the sector.

Thomas Grigoleit | © GTAI/Illing & Vossbeck Fotografie

"Europe's largest and fastest growing CHP market provides you with investment opportunities at all levels of the value chain."

Thomas Grigoleit, Director Energy, Environment & Resources, Germany Trade & Invest

R&D - The German Federal Government provides research grants of 2.84 million Euro for energy, environmental technologies and materials R&D for the period of 2006 - 2009.

INCENTIVES - Germany offers numerous incentives for all investors - regardless of whether they are from Germany or otherwise. There is a large selection of programs designed to support a wide variety of business activities at different stages of the investment process available. Support ranges from cash incentives for the reimbursement of direct investment costs to incentives for labor and research and development (R&D). For R&D related to energy technologies, another EUR 2 billion in total is made available by the Federal Ministry for the Environment in the form of project grants.

The Renewable Energy Sources Act encourages power generation under use of cogeneration technologies and the application of innovative cogeneration technologies through bonuses. The Cogeneration Act guarantees a financial compensation for cogeneration electricity even for station supply. The Renewable Energy Sources Heat Act envisions the enhancement of the share of renewable energies for heat generation for modern buildings. This share can be replaced by heat produced using cogeneration technologies.

Tax breaks for fuels and electricity from cogeneration aim to create a market even more attractive for suppliers and consumers.

The Program for the Promotion of Mini Cogeneration Applications (Mini-KWK-Förderprogramm, for applications under 50 kW) aims to accelerate the installation of mini cogeneration units. 

The Gas Feed-in Ordinance facilitates the feed-in of bio-methane into the German natural gas grid, thereby strengthening the use of biogas for cogeneration applications. Germany is the largest producer of biogas worldwide.

INFRASTRUCTURE - Germany offers world-class industrial and chemical parks for the production of "Made in Germany" products. Our extensive and comprehensive logistics infrastructure integrates state-of-the-art transportation networks with the most modern telematics, IT, and telecommunications systems. Its central position in Europe makes it easy to service western and eastern European markets.

STABLE INVESTMENT ENVIRONMENT - Social, economic, and political stability provide a solid base for your corporate projects. Our judiciary and civil services are highly professional. Contractual agreements are secure, and intellectual property is strictly protected in Germany.

• AGFW - Energy-Efficieny-Alliance for Heat, Cooling, and CHP
• ASUE - Association for the Efficient and Environmentally Friendly Use of Energy
• BKWK - German Association of Combined Heat & Power Industry (in German only)
• Bremen Energy Institute
• COGEN - European Association for the Promotion of Cogeneration
• DFG - German Research Foundation
• DLR - German Aerospace Center
• Euroheat & Power
• European Institute for Energy Research
• Fraunhofer Society
• Helmholtz Association
• IZES - Institute for Future Energy Systems
• Leibniz Association
• ProEcoPoly-Network
• VIK - Association for the Industrial Energy and Power Sector (in German only)