DGAP-News

2G Energy AG: Strengthening international market presence through partner concepts - Seite 3

kW of thermal output, the company is saving 490 tonnes of CO2 per year
through providing electricity and heating in line with demand, according to
the company's own data. With 85.3 % total efficiency, the 2G power plant
helps to significantly reduce energy costs at the Kamps GmbH headquarter
locations, and reduce environmental burdens.

German Cogeneration Act (KWK-G) receives state aid law approval from EU
Commission
Following a long waiting period, the EU Commission issued state aid
approval for the German Cogeneration Act (KWK-G), according to information
from the German Federal Ministry of Economics and Technology (BMWi). Formal
approval from Brussels is anticipated by mid-September 2016. The German
Federal Office for Economic Affairs and Export Control (BAFA), which is
responsible for approving CHP plants under the KWK-G, can then issue
preliminary and decision notifications for CHP systems commissioned since
January 1, 2016. The same also applies for approving the electronic
notification process for mini-CHP systems up to 50 kWel, and the
disbursement of outstanding CHP subsidies to CHP plant operators. KWK-G
support applies for both new and modernized natural gas operated CHP
systems as well as for retrofitted natural gas operated CHP systems.

The most important new aspects: Most of the KWK-G remains as it stands in
its version dated December 21, 2015. CHP plants with less than 1 MWel of
electric output receive support as set out in the act (CHP subsidies). 2G
presented the subsidy rates in an overview in a Corporate News item
published January 12, 2016. For operators of CHP systems with electric
output between 1 MWel and 50 MWel, support is to be converted to a tender
process based on the German Renewable Energies Act (EEG). No reliable
information is available yet providing details about the tender model,
requisite statutory amendments and directives, or the start of the tenders,
however. A transition regulation appears to be planned for systems
commissioned after 2016 and up to 2018, although they must have approval
under the BImSchV (German Federal Emission Protection Directive) or a
binding order by the end of 2016.

The 2G Management Board's appraisal of the KWK-G has not changed. It is
important that the requisite legal and investment security for CHP systems
now prevails again in Germany, especially in 2G's core market in the
electric performance range between 50 kWel and 550 kWel. Possibilities
exist to further boost CHP systems' share of electricity and heating