Flanders wants to limit subsidies for CHP units

The Flemish government intends to change how it supports combined heat and power (CHP) installations. Under the planned reform, CHP plants would be required to increase output when electricity demand is high, and reduce it when there is already a surplus of power on the market. Granting subsidies for electricity production at moments of oversupply is, in the words of the minister, “rather absurd.”

CHP installations play an important role in Flanders’ energy production. The government has been studying the voluntary conversion of CHP support certificates to a system based on equivalent full-load hours.

Under the proposed new rules, certificate support would be halted during periods of negative electricity prices. The government expects to be ready to present a draft decree to the Flemish Government after the summer. Previously, the draft decree had been expected before the summer.

Further spreading of CHP certificates is also still under review. “If further spreading remains relevant for better market integration of CHP installations, the voluntary conversion to a full-load-hours system can be introduced as an amendment when the certificate support scheme is re-notified to the European Commission in 2027,” said Minister Hans Bonte, responding to questions in the Flemish Parliament (link in Dutch).