Germany

GE-10:BMWi promotion of highly-efficient cross-sectoral technologies

Policy Description

Since October 2012, the German Ministry of Economics and Technology has introduced a grant programme focused on SMEs that supports investment in highly efficient cross-sectoral technologies with the aim to improve energy efficiency. The programme includes two options: the exchange of a single technology or a more systemic approach which shall lead to a minimum improvement of 25% of energy savings. Grants cover maximum 30% of investment costs for SMEs and 20% for bigger companies. 

Description

Since October 2012, the German Ministry of Economics and Technology has introduced a grant programme focused on SMEs that supports investment in highly efficient cross-sectoral technologies with the aim to improve energy efficiency.

Companies that undertake investments (new or replacements) to improve energy efficiency through the use of highly efficient cross-sectoral technologies can apply for the grants.

Two options are available:

1) The exchange of a single technology:

Eligible technologies include electric motors and drives, pumps, HVAC systems, compressed air systems, heat recovery systems and waste heat recovery (only for air conditioning systems and compressed air systems). Efficiency requirements are specified for each technology. Net investment volumes (i.e. excluding VAT) must be between 5,000 and 30,000 EUR.

2) A systemic approach:

Precondition is the establishment of an energy saving concept that leads to at least 25% of proven energy savings. Eligible measures include the exchange or new installation of at least two technologies as well as the replacement and renewal of equipment or components that contribute to improving the energy efficiency of the cross-cutting technologies, taking into account their system integration. In addition to the technologies under option 1, the following technologies and services are eligible: renovation of lighting systems, necessary services for the insulation of pipes, pumps and valves, advisory services required to establish an energy-saving concept and the acquisition of measurement technologies for determining the energy consumption. Net investment volumes must amount to minimum 30,000 EUR.

The grant also covers 60% of the costs for energy advice related to the establishment of the energy saving concept, with a maximum amount of 3000 EUR.

There is a maximum grant volume of 100,000 EUR per company for systemic approaches.

Maximum 30% of net investment costs are covered by the grant for SMEs and maximum  20% for bigger companies.

The programme is implemented through the Federal Office of Economics and Export Control (BAFA). [1], [2]

Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.

Policy Categorisation

Policy Instrument Type: Economic, Incentives & Subsidies

Position in the Pyramid

About Us

Participation: Voluntary

Period

Start Date: 2012

End Date: 2015

Agencies Responsible

German emissions trading authority (DEHSt)

Primary Objective: Energy

Objective

Supporting investments in energy efficiency measures

Target Group

Mainly small and medium sized companies, but also bigger companies with up to 500 employees and up to 100 million EUR annual turnover are eligible

Driver of energy consumption or emissions affected by policy: Total energy use / Specific energy consumption /Technology implementation rate

Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.

Coverage

All in target groups

Quantitative Target? no

Progress Monitored? yes

Monitoring Done By

Organisation Type Organisation Name
Third Party

Verification Required? yes

Enforced? no

Enforcement By

Organisation Type Organisation Name
Target Group

Requirements on the Target Group

Support by Government

Implementation Toolbox

Complexity of Implementation

Government

Case-by-case evaluation of application

Target Group

Applicants need to fill out standardised application forms

Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.

Impact Quantitative Estimate Qualitative Estimate
Estimated effect on energy consumption or emissions N/a
Estimated costs/benefits for industry N/a
Estimated cost for government N/a

References & Footnotes

References

[1] BMWi: Richtlinie für Investitionszuschüsse zum Einsatz hocheffizienter Querschnittstechnologien im Mittelstand vom 28. August 2012, Bekanntmachung, Bundesanzeiger, http://www.bafa.de/bafa/de/energie/querschnittstechnologien/vorschriften/richtlinie_fuer_investitionszuschuesse_zum_einsatz_hocheffizienter_querschnittstechnologien_im_mittelstand.pdf accessed on 21.03.2013

[2] Federal Office of Economics and Export Control (BAFA): Programme homepage http://www.bafa.de/bafa/de/energie/querschnittstechnologien/index.html accessed on 21.02.2013