Combined Heat and Power Act

Since 2002, the Combined Heat and Power Act (CHP Act) has been the main basis for the promotion of CHP plants. The Act provides a framework for funding the particularly efficient technology of combined heat and power generation based on the application of a surcharge. Pursuant to the CHP Act, the operators of funded CHP installations are entitled to the payment of a supplement for a limited period of time. The CHP Act is thus creating incentives for investment in what are highly efficient, low-carbon CHP installations, with the aim of raising the level of CHP-based power generation.

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