BAFA MODULE 5
Transformation plan
Up to €90,000 funding for your customized decarbonization roadmap.
The goal is clear for many industrial companies: CO2 neutral by 2045 at the latest. How will the market for electricity and hydrogen develop?
What technologies are available for the electrification of process heat? And which technologies make sense for our location?
While we cannot predict the future or answer all questions with absolute certainty, we provide clarity on critical technical issues, systematically identify energy efficiency potentials, and equip you with tools to evaluate different economic scenarios based on data.
One significant advantage of our services is that - the creation of a customized transformation plan - is comprehensively subsidized by the state via BAFA Module 5.
What is a transformation plan according to BAFA Module 5?
A transformation plan as part of BAFA Module 5 is a strategic document that supports companies in improving their energy efficiency in the long term. This program is aimed at companies that want to take a systematic approach to converting their energy supply to renewable energies and sustainably reducing their energy consumption.
A transformation plan serves as a long-term roadmap for companies to align their processes, production methods and infrastructures with a climate-neutral and energy-efficient future. The aim is to develop a clear strategy for reducing CO₂ emissions and increasing energy efficiency. The plan includes a detailed analysis of current energy consumption and outlines measures to be implemented gradually to achieve the transition to sustainable energy use.
Which components are mandatory in a transformation plan according to BAFA Module 5?
1. Establishing the status quo
Detailed analysis of the company's current energy consumption and CO₂ emissions.
2. Objective
Specific targets for reducing CO₂ emissions and increasing energy efficiency that are aligned with the German government's climate protection goals.
3. Action plan
Description of the measures planned to achieve the set objectives, including timetable and milestones.
4. Controlling concept
Definition of methods and indicators for regularly reviewing progress and adjusting measures as necessary.
The following components of a transformation plan are not necessary, but are often useful
- Scenario analyses – Simulations of different development paths to evaluate the effectiveness of different measures.
- Sensitivity analyses – Analyses of how sensitively the results react to changes in external factors (e.g. energy prices, political framework conditions).
- Funding opportunities – Research into funding programs and other financing options for implementing the identified measures.
What are the funding conditions?
Companies can receive funding from the Federal Office of Economics and Export Control (BAFA) for creating a transformation plan. The funding amount is based on a funding quota and a maximum funding limit.
The maximum subsidy is €60,000, with a funding rate of 40% to 60% depending on company size. Membership in an active energy efficiency and climate protection network can increase the funding rate by 10 percentage points and raise the maximum subsidy to €90,000.
Subsidy according to BAFA Module 5
Company size | Funding rate | Funding amount |
|---|---|---|
Small | 60% | 60.000€ |
Mid-sized | 50% | 60.000€ |
Large | 40% | 60.000€ |
Increased funding for members of an energy efficiency network
Company size | Funding rate | Funding amount |
|---|---|---|
Small | 70% | 90.000€ |
Mid-sized | 60% | 90.000€ |
Large | 50% | 90.000€ |
If there are several locations, a separate transformation plan can be drawn up and subsidized for each location. The maximum funding amounts then apply per location. However, all locations can also be included in a joint transformation plan, in which case the maximum funding amount still applies.
What potential do you have to increase energy efficiency and sustainably lower energy costs?
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Only external services for the preparation of the transformation plan are considered eligible costs. Specifically, these can include:
- Consulting and concept development: Consulting and concept development on energy efficiency, climate protection or adaptation to climate change. Of course, this also includes the actual creation of the transformation plan.
- Measurements: Measurements or other data collection for the greenhouse gas balance. The purchase of measurement technology is not subsidized, but rented measurement technology as part of a service is permitted.
- Certification: Certification or verification of GHG balances. Certification is not mandatory for funding. It therefore only makes sense if it is needed for other reasons.
How do I get the subsidy?
The BAFA Module 5 (transformation plans) funding program offers companies an attractive opportunity to plan the necessary steps towards a climate-neutral and energy-efficient future and implement them in a targeted manner.
To receive funding for a transformation plan, you must follow these steps:
- Offer preparation: You discuss your situation and boundary conditions with us in several online meetings and, if necessary, during an on-site appointment. Together, we will work out the specific content of your transformation plan and prepare an offer.
- Submission of application: The application for Module 5 is submitted online by the company itself via the easy-Online portal. The responsible project management agency for transformation plans is VDI/VDE Innovation + Technik GmbH. We support you in preparing the required documents and align the offer with the funding requirements.
- Evaluation: Once the application has been submitted, the project management agency reviews the application for eligibility. If the outcome is positive, you will receive the grant notification. This process typically takes about 8 weeks.
- Implementation: After approval, you commission us, and we work on the project in close cooperation. The maximum project duration is twelve months. At the end of the project, we prepare all the reports and documents required for funding. You will then have a comprehensive overview of the measures you can implement to achieve your CO2 reduction targets and their associated costs.
- Proof: You prepare and submit proof of the proper use of the funding (proof of utilization) no later than three months after the requested project period. Appropriate forms are available for this purpose. The grant is paid out after a positive review of the proof of utilization.
The transformation plan creates a reliable data foundation for your investment decisions. The funding is granted regardless of the measures you choose to implement.
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About TLK Energy
Our team around Dr.-Ing. Manuel Gräber and Dr.-Ing. Franz Lanzerath consists of thermodynamics and simulation experts and relies on industry-proven software solutions.
More about TLK EnergyFrequently asked questions about BAFA Module 5 Transformation Plan
Classification is based on EU Recommendation 2003/361/EC:
- Small enterprises: fewer than 50 employees and an annual turnover or annual balance sheet total of no more than €10 million
- Medium-sized enterprises: fewer than 250 employees and an annual turnover of no more than €50 million or an annual balance sheet total of no more than €43 million
- Large companies: companies that exceed the above thresholds
The funding rate is 60% for small enterprises, 50% for medium-sized enterprises and 40% for large companies.
The funding is granted as a non-repayable subsidy. Large companies receive 40%, medium-sized companies 50% and small companies 60% of the eligible costs. The maximum subsidy is €60,000. For companies participating in an active energy efficiency and climate protection network, the funding rate can increase by 10 percentage points and the maximum subsidy can rise to €90,000.
The funding is based on Article 49 of the General Block Exemption Regulation (GBER). The GBER is an EU regulation that defines under which conditions state aid can be granted without individual approval by the European Commission. For transformation plans, this means that companies can receive a subsidy for eligible costs.
Yes, but double funding is excluded. Services that are already being funded or have already been funded through this or another funding program are not eligible. A parallel application for the same services under another funding program is also not permitted.
A complete transformation plan should include the following elements:
- Status quo analysis: current state of the site, e.g. energy and resource consumption, including a greenhouse gas balance / GHG inventory
- Target definition: commitment to greenhouse gas neutrality by 2045 at the latest, as well as a specific 10-year reduction target of at least 40% of Scope 1 and Scope 2 emissions compared to the base year
- Action plan: measures to achieve the 10-year target
- Anchoring within the company: description of how the climate targets are anchored and pursued within the company
At least one measure must have a direct link to a production or service process.
These requirements are based on the specifications for EEW Module 5 transformation plans.
No. At least one measure in the transformation plan must have a direct link to a production or service process. Transformation plans that only consider building-related measures are not eligible for funding.
Yes, a transformation plan can cover one or more company locations, provided they are located in Germany. The system boundary must be clearly defined in advance, and each location must be considered in full. If several locations of different legal entities are included, the application may need to be submitted by the parent or holding company.
A separate site-specific greenhouse gas balance / GHG inventory must be prepared for each location included in the transformation plan. It must be prepared in accordance with the GHG Protocol or ISO 14064-1. Scope 1 and Scope 2 emissions must be recorded; Scope 3 emissions can be included voluntarily.
Applications for transformation plans are processed by the project management agency VDI/VDE Innovation + Technik GmbH and submitted online via the easy-Online portal. The application must be submitted by the company itself; external consultants can support the process. Important: The project may only start after the grant notification has been received.
More info about the application process and a link to the easy-Online portal.
Work on the transformation plan may only begin after the grant notification has been received. Starting the project earlier or signing an offer before approval can jeopardize the funding.
The transformation plan must be prepared within 12 months after receipt of the grant notification. In exceptional cases, the project duration can be extended by up to another 12 months upon request. After the end of the project, the proof of use must be submitted to the project management agency within 3 months.
After completion of the transformation plan, proof of use must be submitted to the project management agency. This includes the completed transformation plan, a factual report, a numerical statement and the invoices. The review checks whether the requirements for the transformation plan have been met – not whether all measures have later been implemented in practice.
Eligible costs are external services directly related to the preparation of the transformation plan, such as data collection, GHG balancing or consulting services for the development of energy efficiency and climate protection measures. Ineligible costs include, among others, internal services, legally required services, technical detailed planning, equipment, software or consulting services that have already been funded elsewhere.
The funding is paid out only after the proof of use has been submitted and reviewed. Payments during the project period are not possible.
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