CHP Auction Design in Germany

IET – International Energy Transition GmbH coordinated a project to analyse and implement auction design for Combined-Heat-and-Power (CHP) plants in Germany. Due to EU regulations, Germany decided to move from a premium feed-in tariff scheme to an auction based mechanism for CHP in 2016. Based on the existing auction design for renewable energy technologies, the entire auction design and selection procedure for CHP plants needed to be developed. The project was commissioned by the German Ministry of Economic Affairs and Energy (BMWi) and executed by a large consortium, including Ecofys, Prognos, Fraunhofer ISI and Öko-Institut.