Evaluation of combined heat and power (CHP) in Germany

Client

Federal Ministry of Economics and Energy (BMWE)

Year

2026

Partner

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

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With the expansion of renewable energies, the role of combined heat and power (CHP) in the energy system is changing. The study examines the development of CHP to date (2021–2025), its future significance for electricity supply and district heating, and the need to amend the Combined Heat and Power Act (KWKG).

What role has combined heat and power played to date?

  • CHP met the 2020 expansion target, but generation subsequently declined.
  • In 2023, CHP plants generated 102 TWh of electricity and 197 TWh of heat.
  • With a share of around 72 per cent, CHP remained central to the district heating supply.
  • In future, flexible operation of the plants will become increasingly important.
  • CHP can help to cover the residual load, particularly in winter.
  • In the long term, CHP will remain relevant provided that climate-neutral energy sources are used.

What next for combined heat and power?

The study recommends extending and further developing the KWKG. The focus is on:

  • the modernisation and increased flexibility of CHP plants,
  • further promotion of district heating networks and heat storage systems,
  • and the use of climate-neutral energy sources and hydrogen.

Our approach

Prognos, in collaboration with the Öko-Institut, Fraunhofer IFAM, r2b and BHKW-Consult, analysed and assessed the past and future development of CHP in Germany. On this basis, the experts then drew up specific recommendations for action on how the regulatory framework could be further developed and how combined heat and power could be promoted. In addition, the German electricity market was modelled with particular emphasis on CHP.

Links and downloads

The evaluation (PDF, in German)

Key points paper from the BMWE (PDF)

Further information on the BMWE website

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

Latest update: 22.09.2022

Do you have questions?

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Nils Thamling

Principal

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Marco Wünsch

Principal

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Marcus Koepp

Principal

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