DGAP-News

2G Energy AG supports coming into force of 2016 amendment to German Combined Heat and Power Generation Act (KWKG) - Seite 3

a KWKG levy via grid payments.

Moderate transition regulations and options
The legislator has structured various transition regulations in a moderate
manner. When ordering a plant by December 31, 2015, future plant operators
have been able to choose whether the plant is to receive the CHP subsidy
and support periods according to the previous KWKG 2012 or according to the
new KWKG 2016, if the plant is commissioned by December 31, 2016. In
addition, mandatory direct marketing from 2016 relates initially only to
CHP systems above 250 kW. Plants below 250 kW retain their entitlement to
marketing of CHP electricity by grid operators if they go into permanent
operation by June 30, 2016. For plants below 100 kW, this even applies
until December 31, 2016.

2G Management Board: KWKG delivers important drivers for sector
Overall, the Management Board of 2G Energy AG appraises the conditions that
have been newly set by the KWKG 2016 as an important impulse to exploit the
economic - as well as climate and resource conservation - benefits of CHP
technology for a further expansion of the Electricity Market 2.0 in
Germany. Also, market models that do not feed electricity into public grids
have been upgraded. This takes into account the great significance of
energy service providers and the new business models of energy companies
and municipal utilities. By contrast, it is currently very difficult to
assess how the transition from coal to natural gas driven CHP power plants
that is required by the KWKG 2016 will work.

Due to the EU Commission's review of the act in light of EU state aid
guidelines (notification process), significant regulations contained in the
KWKG 2016 are conditionally for the time being. It is nevertheless expected
that the act will be approved soon during the first quarter of 2016.

CHP Journal offers broad information base about market trends, technology
and 2G reference projects
The CHP Journal that 2G is publishing three times a year provides reports
on reference projects for renowned companies, technological innovations and
market trends. In the latest edition, 2G presents the installation of three
biomethane operated CHP modules of the avus 1000c type for Enercon GmbH,
Aurich, with electric and thermal output of 1,200 kW each. It also examines
the topic of the flexibilization premium for biogas operated CHP systems:
many biogas plants in Germany have reached high operating durations, and
for operators the question arises as to how plant modernization should be
structured. This creates more optimistic prospects for the biogas market
for 2G, because modernization creates incentives for operators to produce