The CHP levy (combined heat and power levy) is a special charge levied in Austria to promote the economic utilisation of combined heat and power plants (CHP plants). CHP plants generate electricity and heat simultaneously from a single energy source, resulting in high energy efficiency. This technology plays a crucial role in the energy transition as it reduces emissions and lowers overall energy demand.

The CHP levy is passed on to end consumers and is a component of electricity and gas prices. The revenue from this levy is channelled into a fund that supports investment in new CHP plants and the operation of existing plants. This incentivises the further expansion and improvement of the technology, which in turn helps to increase efficiency and reduce CO2 emissions.

In Austria, the focus is on the use of renewable energies, and CHP plants can help to increase the proportion of these energy sources in the electricity mix. By combining electricity and heat generation, CHP plants can reduce dependence on fossil fuels while ensuring a stable energy supply. This is particularly important as Austria is a pioneer in the EU in promoting renewable energies, especially hydropower and biomass utilisation.

The level of the CHP levy can vary and is regularly adjusted to reflect current market conditions and political objectives. In recent years, the CHP levy has proven to be an effective instrument for incentivising investment in CHP technology and promoting the use of renewable energy sources.

At European level, the cogeneration levy is also seen as part of the general endeavour to reduce greenhouse gas emissions and promote energy efficiency. The EU has set clear targets to significantly increase the share of renewable energy by 2030. CHP plants can make a significant contribution to achieving these targets.

However, the CHP levy has also been criticised. Some consumers and industry representatives argue that the levy can increase energy costs and therefore represent a burden for households. It is therefore important to find a balance between the promotion of renewable energies and economic viability for consumers.

To summarise, it can be said that the CHP levy plays a central role in promoting combined heat and power plants in Austria. It not only supports the energy transition, but also contributes to reducing CO2 emissions and increasing energy efficiency. In a changing energy market, it is crucial to set the right incentives to further expand the use of CHP technologies and achieve sustainable energy targets.