State aid: Commission approves support to two highly efficient cogeneration plants in Germany
The European Commission has approved, under EU State aid rules, German plans to support the modernisation of a highly efficient cogeneration plant located in Munich and the construction of a new highly efficient cogeneration plant in Herne (Ruhr area). The two individual support measures are granted under Germany's 2016 Combined Heat and Generation Act (CHP Act), which the Commission approved under EU state aid rules in October 2016. Under the scheme, operators of highly efficient cogeneration plants receive a premium on top of the market price. The Commission found that Germany's support to the two plants will contribute to the EU's energy and environmental objectives without unduly distorting competition in the Internal Market, in line with the Commission's 2014 Guidelines on State aid for environmental protection and energy. In this respect, cogeneration increases energy efficiency by recycling the heat from power generation for other uses, to the overall benefit of the environment. Germany had to notify the two support measures to the Commission individually, because both plants exceed the 300 Megawatt notification threshold set out in the Guidelines.