Evaluation of combined heat and power (CHP) in Germany

Client

Federal Ministry of Economics and Climate Protection (BMWK)

Year

ongoing

Partner

Öko-Institut e.V., Fraunhofer IFAM, r2b energy consulting GmbH und BHKW-Consult


With the latest version of the Climate Protection Act, Germany is aiming for climate neutrality by 2045. The energy sector will also have to make a major contribution to this. The next decades will see a significant increase in renewable energies in the electricity and heating market. The role of combined heat and power (CHP) and also of the Combined Heat and Power Act (KWKG) will therefore change.

Against this background, the funding of CHP plants must be regularly evaluated and adjusted. The development of CO2 and primary energy prices also plays a special role here. At the same time, statutory evaluation obligations arise from Section 34 of the Combined Heat and Power Act (KWKG) and additional evaluation requirements arise from the state aid notification procedure with the EU Commission.

Our approach

Prognos is analysing and evaluating the past and future development of CHP in Germany together with the Öko-Institut, Fraunhofer IFAM, r2b and BHKW-Consult. On this basis, the experts will then develop specific recommendations for action on how the regulatory framework can be further developed and combined heat and power can be promoted. In addition, the German electricity market will be modelled with particular consideration of CHP.

Project team: Nils Thamling, Marco Wünsch, Marcus Koepp, Hans Dambeck, Elias Althoff, Nora Langreder, Inka Ziegenhagen, Aurel Wünsch, Paul Wendring

Latest update: 24.02.2022

Do you have questions?

Your contact at Prognos

Nils Thamling

Principal

View profile

Marco Wünsch

Principal

View profile

Marcus Koepp

Principal

View profile

More studies & projects on this topic

CO₂ sinks – greenhouse gas neutrality in the EU and Germany

2026
| Project

How far have systems for storing and extracting CO2 developed in Europe? Our study for the German Environment Agency evaluated planned and ongoing CO2 capture projects in Europe, focusing on BECCUS and DACCUS projects.

Communicative support for the expansion of the distribution network in Schleswig-Holstein

ongoing
| Project

Prognos has been providing communications support for the network expansion of distribution network operator Schleswig-Holstein Netz since 2006.

Evaluation of the European Green Deal

2025
| Project

How effective are EU cohesion and structural policies in driving green change in Europe? We examined this and other questions together with COWI, Milieu and CSIL on behalf of the European Commission (DG REGIO).

Hydrogen prices for the industry

2025
| Project

Our study identifies the key cost components for low-carbon blue and green hydrogen and calculates the cost of supplying hydrogen to industry.

Energy prospects for Switzerland in 2060

ongoing
| Project

The Swiss Federal Office of Energy is planning to redesign its energy strategy for the period up to 2060. Under the leadership of Prognos, various scenarios are being developed for a secure and sustainable energy future for Switzerland. The focus is on the question of how rising electricity demand can be met in the future.

Net zero in industry: The market potential of climate-neutral process heat

2025
| Project

The decarbonisation of industry brings economic opportunities for Germany and the EU. We have investigated the potential of industrial process heat.

International electricity price comparison

2025
| Project

Prognos compared international industrial electricity prices for the Austrian electricity industry. Based on this analysis, we also developed recommendations for government instruments to reduce electricity costs.

Extra-high voltage line Ganderkesee – St. Hülfe

2023
| Project

Grid operator TenneT has put an important power line into operation in Lower Saxony. Prognos supported the communication for the project.

13th Energy Transition Monitoring

2025
| Project

Primary energy consumption in Germany has fallen by a total of ten percent in the last two years. However, not all sectors have been successful.

Acceleration of approval procedures for renewable energies

2025
| Project

How can EU member states accelerate the expansion of renewable energies? Our report for the European Commission analyses which measures are needed to simplify approval procedures.

About us

We combine economic research and strategy consulting for sustainable decisions in politics, business and society. Our robust data, precise analyses and scientifically based findings enable fact-based progress – financially independent, politically neutral. 

Learn more