european potential for cogeneration
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MemberStatereportingunderthe
CogenerationDirective includingcogeneration
potentialsreporting
CODEprojectreportEuropeanSummary
www.codeproject.eu
December2009
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Tableofcontents
Tableofcontents.......................................................................................................................................... 3
CODEproject................................................................................................................................................. 5
Executivesummary....................................................................................................................................... 6
1.StatusoftranspositionoftheCogenerationDirective2004/08/ECintoMemberStatelawinthe
EuropeanUnion............................................................................................................................................ 7
2.StatusofimplementationoftheCogenerationDirectivebyEUMemberStatesconcerninganalysis,
structuresandreporting............................................................................................................................. 10
3.StatusofMemberStatereportingundertheCogenerationDirective................................................... 12
3.1NationalPotentialstudiesoncogeneration..................................................................................... 13
3.2OverviewofReportingofNationalPotentialsforcogeneration...................................................... 13
3.3AnalysingthereportsforaEuropeanoverview............................................................................... 14
3.4EuropeanCogenerationeconomicpotentialin2020....................................................................... 15
3.5EuropeanCogenerationtechnicalpotentialin2020........................................................................ 18
4.MemberStatesprogressinidentifyingbarrierstothegreaterpromotionofcogenerationintheEU.21
4.1Barrierstogrowthofcogeneration:financialbarrierstocogenerationdevelopment.................... 21
4.2Barrierstogrowthofcogeneration:administrativeandproceduralbarrierstocogeneration
development........................................................................................................................................... 23
4.3Barrierstogrowthofcogeneration:general.................................................................................... 24
4.4CODEprojectteamandregionalmeetingcomments...................................................................... 24
5.Member
States
progress
in
reviewing
support
mechanisms
for
the
promotion
of
cogeneration
.........
28
6.MemberStatesprogressinestablishingasystemofguaranteesoforiginforelectricityfromhigh
efficiencycogeneration............................................................................................................................... 30
7.Conclusionsandrecommendations........................................................................................................ 31
7.1Recommendations............................................................................................................................ 31
7.2Observations..................................................................................................................................... 32
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Annex1:EuropeanCommissionguidelinesonnationalcogenerationpotentialsestimationandreporting
.................................................................................................................................................................... 33
Annex2:
Calculation
methodologies
for
CODE
project
(conversions
and
interpolations)
.........................
34
Annex3:StatusofimplementationofGuaranteeofOriginsschemesintheEU(December2009)..........36
Annex4:RegionalreportsonMemberStatereportingundertheCogenerationDirective...................... 38
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CODEprojectTheCogenerationDirectiveThe Cogeneration Directive 2004/08/EC outlines an enabling policy framework for the
EuropeanUnion toexpand thedeploymentofcogeneration inMemberStates.TheDirective
waspassedbytheEuropeanParliamentin2004andencouragestheuseofcogenerationinthe
productionofheatandpowerasasuccessfulandwelldevelopedtechniquedeliveringprimary
energysavings.Thebackgroundpolicyobjectives in2004weresecurityofsupplyandenergy
savings. The climate agendawhich has grown in importance since 2004 has added further
impetus to the wider use of cogeneration. Cogeneration is a highly energy efficient,
technologicallymature
approach
to
generating
electricity
and
providing
useful
heat.
It
is
akey
enablerforimprovingtheefficiencyofelectricityproductionfromfossilfuels.
Oneof themain achievementsof theCogenerationDirectivehasbeen to codify forEurope
what is meant by high efficiency cogeneration. Any plant now carrying this status will in
operation saveaminimumof10%primaryenergycompared to separateproductionofheat
andelectricitybasedon the same fuel.Using the frameworkof theCogenerationDirective,
promoting cogeneration to meet additional electricity needs gives a Member State a
quantifiableprimaryenergysavingperunitofelectricitygenerated.
TheCODEprojectTheCODEprojectwasestablishedinOctober2008byCOGENEuropeundertheEUsIntelligent
EnergyEurope(IEE)programme.TheobjectivesofCODEaretohavestakeholdersinthesector
independently monitor the implementation of the Cogeneration Directive and to use
stakeholderinputtoassesstheprogressbeingachievedthroughMemberStateinitiatives.The
projectrunsuntil2011andwillreportinsequenceon1)theidentifiedEuropeanpotentialfor
cogeneration; 2) the barriers and supportmechanisms for cogeneration existing across the
MemberStates;3)bestpractiseandprogress inMemberStates;and4)adraftCHProadmap
forEurope.
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ExecutivesummaryThe guaranteed energy savingwithin the framework of theDirectivemakes cogeneration a
uniquely quantifiable energy savingmeasure forMember States striving to improve overall
energyefficiencyandreduceCO2emissions.
Considering the current state of transcription of the Directive and its final translation into
memberstatelawtheCODEteamconsiderstheimplementationofthedirectivetohavebeen
slow.
ReportingundertheDirectiveisincompleteparticularlyintheareaofGuaranteesofOrigin.
The23memberstatessofartoreportontheirnationalpotentialforcogenerationhave,used
bothbottom
up
and
top
down
approaches
to
identify
an
additional
122GWe1
of
potential
CHP
capacity in Europe.Associatedwith this electricity generation is1,000 TWh /annumofheat
meetingheatdemand in a rangeof applications acrossdomestic, commercial and industrial
sectors2.Mostmember states can increase theirCHP capacityby aminimumof 50% and a
doublingofthetodaysinstalledcapacityisdescribedaseconomicpotential.
ThememberstateswhohavereportedonBarrierstothewideruseofCHPhaveidentifiedthat
significantbarriersexist.Economic,administrativeandprocedural issues includingconnection
tothegridhavebeenspecificallyhighlighted.Majortechnicalbarriersdonotappeartoexist.
Regionalmeetings of stakeholders have in general supported the reporting of themember
stateswhilefocusingadditionalattentiononimmediatebarriersandgivingadditionaldetailon
thebarriershighlighted.
1ThisfigureisheavilyinfluencedbytheveryhighpotentialreportedinGermany.TheGermanpotentialestimateis
dependentona very large expansion indistrictheatingand financebeing available to thepublic sector at5%
return.2CODEproject team suggest that the effortsmadebyMemberStates in assessing thepotential are generally
competent and thatwith only a few exceptions shouldbe accepted as sufficiently good to actas the basisof
energyplanning.
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1. Status of transposition of the Cogeneration Directive 2004/08/ECintoMemberStatelawintheEuropeanUnionWithafewexceptionslistedbelow,theEUMemberStateshaveconfirmedtranspositionofthe
Cogeneration Directive into national law. The exceptions listed by the Commission are:
Portugal, Slovakia, Finland and theUnited Kingdom.A reasoned opinion on the absence of
proper reportingon the transposition statuswas sent to theseMemberStates inNovember
2009 giving two months to the Member States to respond. Table 1 gives the European
Commissionsstatusontranspositionat1December2009.
Table1StatusoftranspositionofCogenerationDirectiveFrom stakeholder discussions at CODE Regional Workshops it is clear that parliamentary
approvalof thetranspositionintoanationallawdoesnotnecessarilymeanthattheprovisions
of the Directive are fully implemented or active in thatMember State. There is frequently
complexityinthedetailofimplementationintonationallawfollowingtheformaladoptionand
onlywhenthefullprocessiscompletedcanthetranspositionbesaidtobecomplete.
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InItalyforexample:
LegislativeDecree20/07createsnewprovisionsforthefuturedispositionsforthecogeneration
development,according
to
the
Cogeneration
Directive:
possibility to have access towhite certificatesfor all the highefficiency cogenerationplantsandgradualextensiontotherightofwhitecertificatesaccessalsotoplayersthat
are differentfrom the current ones, referring to criteriafixed in thefuture Ministry
Decree(art.6,points15);
possibilityfor theAuthority to consider specialoperative conditionsforhighefficiencycogenerationplantswhenitwilldefinechargesrelatedtotransmissionanddistribution
cost(art.7,point4);
simplification of administrativeproceduresfor the authorisationfor construction andmanagementofcogenerationplants,especiallyregardingsmallandmicrocogeneration
units(art.8).
Thefirstandthirdbulletpointsabovewhitecertificatesupportschemesforcogenerationand
simplifiedadministrativeproceduresareatDecember2009stillwaitingforaspecialMinistry
Decree that could implement these. So, while the Cogeneration Directive is formally
implementedinItaly,forthetimebeing,thestatusofcogenerationinItalyisleftinavacuum,
whilethegovernmentalignstheframeworkconditionsforcogenerationwiththeprovisionsof
theCogenerationDirective.
InGreece:theCogenerationLaw3734of2009hasbeenadoptedbytheparliament.Article7,Para4ofthis
law states that in order to safeguard the transmission and the distribution of electricity
producedfromhigh efficiency cogeneration, theprovisionsof theGrid andMarketCodeare
appliedincludingthenecessaryamendmentsoftheCodeinordertoensuretheparticipationof
thecogenerationunits intheGreekelectricitymarket.TheGridCodewhenfirstpublishedfor
consultationmade no reference to cogenerationatall. Several stakeholder approaches have
beenlaunchedtocorrectthis.To varying degrees the CODE project team has been notified of existing gaps in the
implementation of the Cogeneration Directive through the absence of secondary or other
legislationspecifically in Hungary,Latvia,Lithuania, Italy,Greece,France,Romania,Germany,
Netherlands,Malta,Luxembourg. Thetranspositionand implementationoftheDirectivehas
beenslow.Due to the lackofprogress inseveralMemberStates it isquitepossible that full
implementationatnationallevelwillnotbeconcludedinallMemberStatesuntillatein2010:
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sixyearsaftertheacceptanceofthelegislationbytheEuropeanParliament.Fordetailsofthe
implementationseeindividualregionalreports(Annexes4.1,4.2,4.3and4.4).
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2. Status of implementation of the Cogeneration Directive by EUMemberStatesconcerninganalysis,structuresandreportingUnder the Cogeneration Directive the Member States are asked to assess their national
potential for cogeneration and to carry out various enabling assessments (barriers support
mechanisms verification throughGuaranteesofOrigin) and thenupdate theCommissionon
progress towards achieving the potential. The Directive uses a reporting and self analysis
mechanismintendedtodrivecontinuousimprovementtowardsahigherlevelofcogeneration
intheeconomy.
MemberStateswererequiredtoproducethefollowingreports
Analysisofthenationalpotentialforcogeneration(21/02/2006) Reviewofbarrierstothewideruseofcogeneration(21/02/2006) Reviewofthesupportmechanismsforcogeneration(21/02/2006) ProgressReportonCogenerationDirective(21/02/2007)
Apart from the Progress Report which was requested by the European Commission in a
modified questionnaire format,Member Stateswere left free to choose the format of the
reportswith
the
content
guided
by
the
Directive
and
its
Annexes.
As
aresult
the
Member
States
reportsvaryconsiderablyindepthandcontent.
In general reporting byMember States under the Directive has been slow and is still not
complete as can be seen in the table 2 below.Only 12Member States have completed all
reportingundertheDirectivemorethantwoyearsbeyondthelastdeadline.AllMemberStates
should have delivered a report on the national potential for cogeneration to the European
Commission by the 21st of February 2007. At the time of writing there are 23 National
PotentialsStudies in thepublicdomain, coveringover80%ofEuropes current cogenerating
capacity.
Likewise,inreportingonbarrierstothewiderdeploymentofcogenerationandonthecreation
of a scheme for guarantees of origin, there are still reportsmissing fromMember States.
Luxembourg,HungaryandPortugalhavenotyetreportedonbarriersandeightMemberStates
havenot reportedon their scheme for guaranteesoforigin (CzechRepublic, Spain,Greece,
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Ireland, Cyprus, Luxembourg, Hungary and Portugal) although both the Czech Republic and
EstoniaappearinpractisetohaveoperationalGoOsystems.
Discussion
ThereportingmechanismoftheDirectivewasforeseenasboththestickandthecarrotofthis
legislation. Knowing the economic and social benefits of improving energy efficiency in the
generationofelectricity, itwas foreseen thatMemberStateswouldmove rationally towards
promoting investment in cogeneration propelled by the logic of the reporting process:
potentials, barriers and support mechanisms. However, few Member States have moved
quickly3 to implement theDirective,or follow throughthereportingsteps.Legalproceedings
againstdefaultingMemberStateswerestartedbytheCommissioninMay2009.
3GermanyandtheCzechRepublicstandoutasMemberStateswhichfullyembracedandmovedforwardonthe
Directive.
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3.StatusofMemberStatereportingundertheCogenerationDirectiveUnder the CogenerationDirective the 27Member States are asked to assess their national
potentialforcogeneration,reviewbarrierstoimplementingthispotentialandthenupdatethe
Repo rting obligations of Coge neration D irective 2004/08/EC(situation up to 05/10/2009)
M S
Progress R eportAn alysis of National
Potential
Barriers for CHP /adm inistrative
procedu ral situation
Guarantees ofO rigin Scheme
[Art 10(2) Art6(3)]
[Art 10(1) Art6(1)]
[Art 10(1) Art9(1&2)]
[Art 10(1) Art 5(3)]
due on 21/02/2007and then each 4
years
du e on 21/02/2006 due on 21/02/2006
due on 2 1/06/2007 (6months after
adoption of
harmonizedreference values
CommissionDecision
2007/74/EC of
21/12/2006
B E received r eceived received received
B G received r eceived received received
CZ received not received not received not received
DK received r eceived received received DE received r eceived received received
E E received r eceived received received
IE not received r eceived received not receivedE L received r eceived received not received
ES received r eceived received not received
F R received not received received received IT w aiting for
translationreceived w aiting for
translationreceived
C Y received r eceived received not received
LV received w aiting for
translation
w aiting for
translation
w aiting for
translationL T received not received w aiting for
translation
w aiting for
translation
LU not received w aiting for
translation
not received not received
HU not received not received not received not received
M T received r eceived received received
NL received r eceived received received
AT received r eceived received received
PL received r eceived received received
PT not received not received not received not receivedRO received r eceived received received
S I received r eceived received received
S K received r eceived received received
FI received r eceived received received
SE w aiting fortranslation
w aiting fortranslation
w aiting fortranslation
w aiting fortranslation
UK received r eceived received received
Table2StatusofreportingobligationsoftheEUMemberStates
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Commission on the progress towards achieving this potential. This is foreseen as a self
motivatedprocessofcontinuous improvement towardsahigher levelofcogeneration in the
economyand
an
increased
primary
energy
use
efficiency
and
energy
savings.
Reporting byMember States under theDirectivehasbeen slow4with 21 reports still tobe
submittedalthoughthedeadlinesforsubmittingreportsfellin2006and2007(Table2).
AllMemberStatesshouldhavedeliveredareportonthenationalpotentialforcogenerationto
theEuropeanCommissionby the21stofFebruary2007.At the timeofwriting thereare23
National Potentials studies in the public domain, although one of these from the Czech
Republic hasnotbeenofficiallyreceivedbytheCommission.Thesereportscoverover80%of
existingcogeneration
capacity
in
Europe,
and
are
the
focus
of
this
report.
At
December
2009
fourMemberStates(France,Hungary,PortugalandLatvia)havemadenosubmissionatallon
national cogenerationpotentials. Themissing potential studies of France,Hungary, Portugal
andLatviarepresentanadditionalpotentialtothenumberspresentedhere.
3.1NationalPotentialstudiesoncogenerationMemberStatesareasked to reporton thenationalpotential forcogeneration in2010,2015
and 2020. Starting from an assessment of heat demand over the period to 2020,Member
States are asked to investigate different types of application and economic sectors where
cogenerationisapplicableandthroughthisbuildapictureofthetechnicalpotentiali.e.how
muchheatandelectricitycouldbesuppliedthroughcogenerationintheabsenceofanyother
constraints.Fromthistechnicalpotentialaneconomicpotentialisdeducedusingassumptions
about theenergymarket,availabilityofsupport, required rateof return,etc.MemberStates
have considerable freedom5 in how they evaluate both the technical and the economic
potentialsalthoughtheCommissiondidissueguidelineswhichgiveabasicframeworkofpoints
toconsider(Annex1)
3.2Overview
of
Reporting
of
National
Potentials
for
cogeneration
In assessing the national potentials reports, the CODE project has looked for appropriate,
thorough and transparent analysis which follows the guidelines laid out in the Directive.
4 The Commission started legal proceedings againstMember States for noncompliance of the Cogeneration
Directive in May 2009, and these Member States are now following the appropriate process to achieve
compliance.5 Thedegree of freedom in the reporting has led to a large variety in reporting formats and approaches. The
different choices ofMember States in units of reporting and choice of base year have been overcome in the
reportingbyusingreasonableassumptionsconsistently.
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MemberStateshavetakendifferentapproachesandusedadifferingdegreeofdetailaccording
to the information that is available. From the content of the reports it is clear thatmost
MemberStates
have
gathered
appropriate
data,
used
reasonable
modelling
techniques
and
made clear their assumptions in their assessments.Goodexamplesof reporting (butnot an
exhaustivelist)areSlovakia,GermanyandSpain.
However,someMemberStateshavereportedonlygeneralassumptionsandquotedonlythe
mainresultsofworkwhichisnotpubliclyavailable.Anassessmentonqualityandlevelofdetail
oftheanalysisisnotpossible.AfewMemberStateshavepresenteddata,extrapolatingfroma
few specific cases,but carriedoutonly very limited analysis: this seems to fall shortof the
objective.Severalmemberstatesreportdifficultiesisassessingthefollowing:
microCHP:poorlydefinedeconomicand technicalcapabilityasyetmakesmicroCHPdifficulttoincludeinanalysis;
coolingpotential:dataoncoolingrequirementsisnotavailableinmanyMemberStatesandthereislittleavailableproductonwhichtobaseaneconomicassessment;
bioenergyanduseofwastematerialsforenergyproduction.Theseareallareaswherelittlepriorworkhasbeencarriedoutandwherelittledatacurrently
exists.SeveralMemberStateshavethereforestoppedshortoffullyexploringthispotential.
3.3Analysing
the
reports
for
a
European
overview
The absence of a standard reporting format for potential studies presents a number of
challengeswhenanalysingthereports.Specificdifficulties lieinthelackofaconsistentsetof
units,orsectoralanalysisapproach.Ascogenerationpotentialisdependentonidentifyingheat
demandwhichcanhostelectricitygeneration,manybutnotallMemberStateschosetoreport
potential in total heat energy delivered with additional information on electrical energy/
installed generating capacity. Some Member States followed the sectors outlined in the
CogenerationDirectivebasingtheiranalysisonthegeneratingcapacityofplants,whileothers
chosetotakeaneconomicsectorbasedapproachandlookedatenduseinindustry,servicesor
districtheating.
Several
Member
States
based
their
reports
around
different
reporting
periods
tothoseproposedbytheCommission.
AssessingtotaleconomicpotentialattheEuropeanlevelisalsodifficultasMemberStateshave
not always made their basic scenario assumptions, their economic assumptions or their
assessmentmethodsexplicit.AsaresulttheCODEprojecthashadto interpolatetoacertain
extent from thepublisheddata togivea firstoverallpicture.However,where thishasbeen
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done we have chosen a conservative approach and used a single consistent conversion
approachfortheinterpolation(seeAnnex2).
3.4EuropeanCogenerationeconomicpotentialin2020Estimatesofeconomicpotentialarederiveddirectlyfromanexplicittechnicalpotentialorare
simplydeclaredasthepotentialwithoutclarificationofthetechnicalpotential.Itwasdifficult
toextracttheinformationonpotentialfromanumberofMemberStatesreports:
Someresultstendedtobeheavilyqualifiedandnottabulatedbutincludedintext; SomeMember States gave awide range of potentials dependent on real or futurevariables rather than a single value, in this instancewe chose the lower end of the
range;
Some Member States reported in terms of TWh of electrical output rather thancapacity,inthisinstancewemadeanestimateofcapacityfromtheoutputfigure;
Theabsenceof full language translationofsomeMemberStates reportsuntil late intheanalysisperiodprovedtobeachallengewhichleavestheriskthatsomenuancesof
thedatahavebeenmissed.
DifferentapproachesandassumptionshavebeenusedbyMemberStateswhenitcomestothe
economic potential. Several factors of economic and the perceivedmarket effectiveness of
cogenerationplantshavebeenusedwithagiven internal rateof returnon investment (IRR)
levelbeing
apopular
hurdle.
Required
operating
hours
and
assumed
levels
of
policy
support
are
alsousedasscreeningmethods,asareassumptionson implementationfeasibility inMember
States.Inmostcasestheexistingeconomicsupportmechanismshavebeentakenintoaccount.
Whereboth technicalandeconomicpotentialareexplicit,economicpotential is significantly
lowerthantheevaluatedtechnicalpotentialintheMemberState.SomeMemberStateshave
chosennot togivea singlepotentialestimatebuthave rathermodelled thepotentialunder
different scenarios, reflecting for example the effect of different carbon prices and support
schemes.
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0
10
20
30
40
50
60
70
80
90
100
Germ
any
Unite
dKi
ngdo
m
Pola
nd Italy
Spain
Swed
en
Bulg
aria
Austria
CzechRe
public
Romania
Finlan
d
Belgiu
m
Gree
ce
Irela
nd
Slov
akRep
ublic
Lith
uania
Slov
enia
Denm
ark
Latvia
Cyprus
Esto
nia
Portu
gal
Fran
ce
Hung
ary
Malta
Neth
erla
nds
CHPcapacity[GWel]
Existing instal led CHP capacity Additional economic potential 2020
Figure1:Existinginstalledcogenerationcapacityandreportedadditionaleconomicpotentialintheyear2020
ThereportedEuropeaneconomicpotentialforcogenerationisshowninGWeinstalledcapacity
infigure
1above.
This
capacity
would
provide
by
2020
atotal
contribution
to
Europes
energy
flowsof455TWhofelectricalenergyandat least1,000TWhofusefulheat supply froman
estimated122GWeofgeneratingcapacity.Thisrepresentsaminimum6primaryenergysaving
of46TWhandavalueofCO2avoidedof$0.8billionEurosatapriceofcarbonof39Eurosper
ton(20.5milliontonnesofCO2).
Theevaluationprocess fordeterminingeconomicpotentialvarieswidelyacross reports,and
thefollowingobservationsapply:
ThejudgementastowhatiseconomicornotisheavilydependentontheMemberStateassumptions
and
on
the
assumed
rate
of
return
chosen
by
the
Member
State.
For
example the UK report identifies that an economic rate of return for a commercial
enterprise is15%whileforapublicsector investment9% isacceptable. Inmakingthis
decisionallinvestmentsindistrictheatingarejudgeduneconomic.Germanyhasbased
6 The lower energy saving is based on theminimum value of primary energy saving under the Cogeneration
Directiveof 10%.Modern cogenerationplant as reported byDenmark in their potentials report is saving 25%
primaryenergyequatingtoatotalof115TWh.
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itsreportonafeasibilityanalysisusinganannualinterestrateof8%inthecommercial
sectorand5%forthepublicsector;
The
economic
effectiveness
of
the
cogeneration
potential
for
small
scale
(and
micro)
units in the servicesandhousehold sectors is stillbelowwidermarketapplication (in
newEUMemberStatesforexampleonaverageonly5%ofevaluatedtechnicalpotential
istreatedaseconomicpotentialinsomeMemberStates).Regionalobservations:
There issignificantunexploited industrialheatpotentialforcogeneration inEurope. Inthelargereconomiesthismakesuparound50%ofthepotential;
7
InsouthernpartsofEurope,the industrialpotentialandtertiarysectorheatpotentialhave been stressed over the district heating potential. The cooling potential is also
stressed;
Significant potential exists in new Member States particularly for refurbishment ofdistrict heating schemes and their upgrade to includemodern cogeneration (where
currently only heat is distributed). This is universally the casewhere a large district
heatinginfrastructurealreadyexists;
InmanynewMemberStatesthehighestshareofeconomicpotential intheevaluatedtechnicalpotentialislinkedtothemodernisationandupgradeofcogenerationunitsin
districtheatingsystems,withthereplacementofexistingsteamturbinesbycombined
cycle
units
running
on
natural
gas;
There is a definite trend to extrapolate the future opportunity from known pastsuccesses.Henceincountrieswhichhaveastronghistoryofdistrictheatingandalesser
experience in industry, thepotential is seen verymuch inexpandingdistrictheating,
with less opportunity in moving more cogeneration into industry to be based on
industrial heat. In countries such as theUnited Kingdomwhere there is a history of
industrial cogeneration and virtuallynodistrictheating, the additionalpotential is all
seenasbeinginindustryandsmallcommercialdevelopments.InGermanywhichhasa
strongtraditioninbothsegments,bothsegmentsareseenaspotentialforexpansion;
Germanyreportsaverylargeeconomicpotential.TwofactorsintheviewoftheCODEprojectteamhavecreatedthisresult:
1.Alongtermenergystrategybasedonrenewablesandenergyefficiency,linked
toastrongcommitmenttomeetingKyotogoals.Thisproducesahighmotivation
tofindenergyefficientsolutionsforthesupplyofbothheatandelectricity;and
7DploystudyonindustrialCHPin4majorindustrysectorswww.dploy.eu
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2. A tradition of both industrial process and district heating schemes using
cogeneration. This produces a strong technical, social and economic
understandingof
the
potential
of
cogeneration
to
improve
energy
efficiency
and
allowsarobustandselfconfidentanalysisofthepotential.
3.5EuropeanCogenerationtechnicalpotentialin2020Only14MemberStateshavereportedatechnicalpotentialalthougheveryMemberStatemust
havemadethisassessmentasafirststeptoassessingeconomicpotential.Thereportedfigures,
comparedtocurrentinstalledcapacityareshowninfigure2below.
Figure2ComparisonoftheMemberStateidentifiedtechnicalpotential(additional)comparedwiththeexistinginstalledcapacity.
There is no simple ordirect relationship between the identified technical potential and the
existinginstalledcapacity.Eightofthe14MemberStateshaveidentifiedthetechnicalcapacity
astwiceaslargeormorethantheinstalledcapacity.
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TheMember States technical potentials are based on the analysis of current cogeneration
status with projections of future heat and electricity demand. The level of detail and
approachesin
considering
sectors
and
sizes/technologies/energy
sources
of
cogeneration
units
varies but themajority of analyses are based on a segmentation approach, i.e. bottom up.
When theMember States evaluated technical potential against their economic criteria, the
economicpotentialemergedasinfigure3below.
0
5
10
15
20
25
30
CzechRe
public
Spain
Pola
nd
Slov
akia
Austria
Bulg
aria
Denm
ark
Romania
Greece
Ireland
Slov
enia
Lith
uania
Latvia
Esto
nia
CHPcapacity[GWel]
Addi tional technical potential 2020 Addi tional economic potential 2020
Figure3Reportedadditionaltechnicalandeconomicalpotentialofcogenerationelectricalcapacityby14MemberStatesintheyear2020
Again there isnosimpleordirectrelationshipbetween the identifiedtechnicalpotentialand
the economic potential. The technical potential has not always been clearly stated in each
MemberStatereportandthereisalowlevelofreportingoftechnicalpotentialingeneral.
WhereaMemberStatehasclearlyandunambiguouslyidentifiedatechnicalpotential:
Thereisalackofbackgroundinrelationtomethodologiestodeterminetheaboveandoften the Member State has used existing potential studies as the basis of the
compliancedocumentationforarticles6and11andnotundertakenbespokeresearch
tofulfiltheserequirementsofthesearticles;
ThoseMemberStates thathave commissionedbespoke research for thepurposesofidentifyingnationalpotentialsforcogenerationhavemainlyusedatopdownapproach;
Wheretechnicalpotentialhasbeen identifiedseparately,awiderangeofsectorshavebeenhighlighted;
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Potential isseenacrossthe fullcapacitysizerangesofcogeneration installationsfrommicrotoverylargescale;
In
general
very
little
focus
has
been
put
on
the
potential
associated
with
micro
CHP,
coolingorbioenergy,andtheseremainapotentialupsidetothepublishedfigures.
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4. Member States progress in identifying barriers to the greaterpromotionofcogenerationintheEUThreeMemberStateshavenotreportedonbarrierstothepromotionofcogenerationintheir
territory (Luxembourg,Hungary and Portugal). The following summary is for thoseMember
Stateswhohave reported.Across the full24MemberStateswhohave reportedonbarriers,
severalsignificantbarriersare identified.Thecommonthemesareaddressedbelowwhilethe
detailcanbefoundinthefourCODERegionalReports(SeeAnnexes4.1,4.2,4.3and4.4).
Asmightbe expected theMember Stateswith ahighpenetrationof cogeneration (Finland,
Denmark)report
in
their
heat
and
electricity
sectors
proportionally
less
barriers
to
do
with
administrationorgridconnection.Finlandassertsminorbarriersforexpandingcogeneration
overall,while inDenmarks report, regulatory and administrative barriers are not cited and
barriersingeneralarefewinnumber.Therearealargenumberofdifferentbarriersquotedby
the Member States. Often these are not prioritised and the list always reflects key
characteristicsofthelocalenergymarketandthecountriesenergyhistory.Therearehowever
certaincommonthemeswhichemergeasthemajorbarrierswhichMemberStatesbelievethey
face currently. Formore information on specific countries or on the extent of the barriers
quotedconsulttheregionalreports(SeeAnnexes4.1,4.2,4.3and4.4).
4.1Barrierstogrowthofcogeneration:financialbarrierstocogenerationdevelopmentA key element of profitability of a cogeneration plant is the run time of the plantwhich is
dependentontheheatdemandofthe industrialprocess,commercialentityorspaceheating
demandthecogenerationplant issupplying.The longertheoperatinghours inanyoneyear,
themore rapidly theprofitaccumulates fromanewplantand the faster is thepaybackon
investment. The ideal situation is a high number of heat demand hours. Hence industrial
applications with long operating hours or district heating in a region of long winters are
attractiveoptions
for
cogeneration.
The
second
most
significant
impact
on
the
cost
effectivenessofcogeneration iswhatiscalledthesparkspread:thedifferencebetweenthe
price of electricity and the price of the basic fuel onwhich the cogeneration depends. The
larger the price/cost difference, the more profitable the sale of the electricity from
cogeneration will be, hence the shorter the payback time and the lower the risk of any
investment.
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AllMemberStatescitesomeformoffinancialbarrierforcogeneration.Leadingamongthese
are:
Therelatively lowpriceofelectricity,especially forhouseholdsandtherelativelyhighpriceof gas.This is frequently coupledwith concerns regarding secure availabilityof
supplyand the risksassociatedwith single suppliers (Czech republic,Slovenia, Latvia,
LithuaniaandSpain)
Gas isa lowcarbonfuelandhencegoodforreducingclimatechange.However,cogeneration
plantsongashaveahighmarginalcostoffuelcomparedtoeithermaturebaseloadcoalplants
ornuclearbase load.Theresult isthatwhilecogeneratorscancompete inpeakperiods,they
cannotcompeteinoffpeak.Norarecogeneratorsfreetooperatetooptimisethevalueoftheir
electricitysalesonthemarketastheirprimarycustomers(theheatcustomers)mustbealsobe
served.
Uncertaintyintheforwardpriceoffuelandelectricityasawholemakinginvestmentincogenerationarelativelyhighriskbycomparisonwithotherdiscretionary investments
(GermanyandSpain).
Negative Impact of ETS on cost of cogenerated heat and electricity further erodesprofitability
The negative impact is a particular concern in the newMember States andwas specifically
mentionedbyPolandwherethereisaconsiderableamountofcoalintheprimaryfuelmix.For
allMemberStatestheadditionalcostofcarbondrivenbyETSandwhichcannotbepassedonin
the electricity pricing when generating off peak will impact the overall profitability of
cogeneration.AdditionallytheETScostofcarbon inheatfromdistrictheatingwhere district
heating is in competitionwithheat sourcesoutsideETSwillalsohave anegative impacton
profitability.
Impactofmarketliberalisation(BelgiumandtheNetherlands)Marketliberalisationhastendedtosuppressedthepriceofelectricity
NewMemberStates:
Thenew
Member
States
tended
to
highlight
additional
economic
barriers
as
the
most
significantbarrierstothefurtherdevelopmentofcogeneration:
Significant capital investment is required to upgrade cogeneration schemes in allsectors. In housing and district heating schemes significant capital investment is
requiredtorepair,modernise,insulateandinstallcogenerationinexistingnetworks.At
thesametimetheaccesstocapitalisparticularlypoorduetolowcreditratingoflocal
companiesandinthedistrictheatingsectorduetothepoorcommercialmodelswhich
haveoperatedhistorically(seebelow);
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SeveralMemberStateshighlighted thepoorcommercialmodelcurrentlyoperating insomedistrictheatingcompaniesasabarrier.Regulationofthesectorincludingcontrol
ofthepriceofheat,operatinghoursandsocialobligationsmadethesectorunattractive
commercially,whilemanycarrysignificantdebtduetocustomerpaymentdefaults.
Thesensitivityofparticularlysmallscalecogenerationanddistrictheatingtotheeconomicsof
theenergysectorishighlightedinthefollowingcommentsfromtheMemberStatereports:
Denmarkreports:Inthenextfewyearsthepriceofelectricitywillnotbehighenoughtoallowforinvestmentinnewcogenerationcapacity.Thisisattributedtothefactthatthe
electricitypriceisbelowthelongtermmarginalcostsforanewplant.Itgoesontonote
thatasolderplantsaretakenoutofservice,capacitywillgraduallyfallandthepriceof
electricitywillrisetoalevelatwhichinvestmentsmaybeprofitable.
Finlandreports:ModernCHPiscompetitiveonthemarket inrelationtotheseparateproductionofheatandpower.This ismainlyduetothestructureofour industryandtheclimaticconditions.CHPproduction isnotparticularlysupported inFinland,with
theexceptionofsmallscaleCHPproductionbasedonrenewableenergysources,since
small scale separate production is still relatively more competitive than CHP
production.
Belgium reports: At a federal level the report points tomarket uncertainty due toliberalisationandfuelpricevolatility.Thisisexacerbatedbytherequiredcapitaloutlay
ofcogenerationprojects
Poland reports: The fundamental barrier to the development of cogeneration iseconomic.
The
price
of
power
and
heat
on
the
national
competitive
markets,
in
considerationofthebalancingmarket,doesnotpointtowardsinvestmentincombined
sources.
4.2 Barriers to growth of cogeneration: administrative and procedural barriers tocogenerationdevelopmentManyMemberStates(Romania,Greece,Cyprus,Germany,SpainandEstonia)havehighlighted
administrative and procedural barriers to the further development of cogeneration. These
relate to the difficulties of developing commissioning and running cogeneration plants. A
sampleofthetypesofproblemsstillbeingfacedisgivenbelow:
Authorisationproceduresarebureaucraticanddifficulttoworkwith; Thereisanunduecostofinformationassociatedwiththeproposalandearlydevelopmentofaproject;
Proceduresforconnectiontoelectricalgridsarenotstandardisedorcodified; Placing of cogeneration electricity on the local energy market does not allow for thecharacteristicsofoperatingcogeneration;
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Initialcostsofconnectingtothegridandthereafteroperatingtheplantundulyburdenthecogenerationplant;
Unfavourable
provisions
concerning
back
up
electricity
supplies
decrease
the
credit
items
of
cogenerationproducersfromtheavoidednetworkcharges,
4.3Barrierstogrowthofcogeneration:generalThere are very few Member States comments on technical barriers to the promotion of
cogeneration. This is understandable as high efficiency cogeneration technology for the
production of heat and electricity is a mature technology which is well understood and
generallyavailable.OneMemberState, i.e.Poland,chosetoemphasisethispointandstated
At thepresent levelofpower technologydevelopment technicalbarriersareofvirtuallyno
importance.
Germany,whichhasclearlyastrongtechnicalbaseincogeneration,chosetocommentonthe
ongoingneedtodevelopcogenerationtechnologyhighlightingthatatechnicalbarrierexisted
in the case of gas turbine combined heat and power technology and counter pressure
machines,where there is a fixed ratio of electricity to useful heat production. This lack of
flexibilitymakesitdifficultforthistypeofplanttorespondtochangesindemandforelectricity
andhenceintheelectricityprice.Thisthreatensthepotentialtooperateprofitablyinamodern
fullyliberalisedelectricitymarket.
MaltaandSpainbothcitethelimitedavailabilityofanaturalgassupplyasatechnicalbarrier.
SeveralMemberStatesmentiontheearlydevelopmentstagesofbothcoolingtechnology(Spain
andGreece)andmicroCHP(UnitedKingdom,DenmarkandGreece)aspreventingtheircommentson
thesetechnologies.
4.4CODEprojectteamandregionalmeetingcommentsTheRegionalWorkshopsof theCODEproject,supplementedbyoneononediscussionswith
Member State stakeholders, were held inMilan (May 2009), London,Warsaw (September
2009)andAthens (October2009).Thesemeetingsgaveanopportunity for thecogeneration
stakeholders in the region todiscuss the successof the implementationof theCogeneration
Directiveandtohighlighttheirareasofconcern.
TherewasacertainamountofsatisfactioninsomeMemberStatesovertheirimplementation
of theDirectiveand itssuccesses so far,notablyBelgium,SpainandGermany.Eachof these
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MemberStateshasbeendiligentinimplementingtheDirectiveandhasfollowedthroughwith
supportmechanismstopromotecogenerationandtofurtherdevelopthepotentialidentified.
Thereare
refreshing
developments
in
Denmark
and
the
Netherlands
where
district
heating
and
smallcogeneration inagricultureareboth findingnewbusinessopportunitiesthroughselling
balancing services to the grid and throughusingheat storage tooptimise their timeon the
market.InGermany,wheremicroCHPisalsomostwidelyused,announcementsinsummerof
2009oftheintentionofLichtblicktocreateavirtualpowerstationofmicroCHPunitsinorder
tobalancetheincreasingvolumeofwindonthegrid,showthatnewtechnologyisstimulating
newwaysofworkingwithcogeneration.
ThemajorthemeswhichemergedfromthesefourRegionalWorkshopsare:
1.Impact
of
the
right
to
dispatch
or
not
on
the
overall
economics
of
cogeneration
significantly
effectsthecommercialoperationofcogenerationplant.
This is a theme which appeared only in the Estonian report, however, it is an important
discussionpoint forpolicy around cogeneration. Itwas also raised in allexcept theWarsaw
regionalmeetingandisconsideredbystakeholderstobeasignificantbarriertothepromotion
ofcogeneration.TheCogenerationDirectivehasprovisionsforMemberStatestogivetheright
ofprioritydispatchtocogenerationplants.Priorityofdispatchisalreadygrantedtorenewable
energy.Giventhelowcarbonnatureofcogenerationamongfossilfuelsourcesanditsabilityto
supply electricity when the heat demand is also present, giving priority of despatch to
cogenerationmakes
good
energy
efficiency
and
CO2
reduction
sense.
Attractively
for
the
TSO
or DSO the availability of the cogeneration electricity is predictable and dependable and
increasingly flexibility is being introduced. However, achieving recognition of the operating
characteristicsof cogeneration inorder tomaximise itsenergyefficiencyandCO2 reduction
potentialishard.
2.Projectinception,developmentandcommissionissuesaroundgridconnectionbothtechnical
andfinancial
Particularlywith small installationswhereconnection isa significantpartof the totalproject
costandtheconnectionisatDSOlevel,therearemultipleproblemsoriginatingintheongoing
poor adaption of the transmission and distribution networks to the emerging demand for
distributedgeneration.Thestakeholdersatregional levelsupported indetailtheissuesraised
byMemberStatesunderadministrativeandproceduralissues.
InSpainforexamplethere isanobligationonthegridownertogiveacogenerationplantan
interconnectiondependingonthecapacityofthegrid. Afeasibilitystudymustbecarriedout
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andbeforeitcanbestartedthegridownerrequiresthatabankguaranteeforasumequivalent
tothevalueoftheproposedprojectistakenoutbytheprojectowner.
In theUK there are 12DSOs covering the country. All have separate information systems,
contractsandstructuresfordistributedgenerationconnectionandnonearesetuptoengage
withdistributedgeneratorsonaregularbasis.
3.Capitalissues,andbusinessmodelissues,particularlyindistrictheatingrefurbishmentinnew
MemberStatesConsiderable concern was voiced both the new Member States seeking to promote
cogeneration through the refurbishmentofdistrictheating.Moreover,adeterioration in the
economicmodel
for
district
heating
is
widely
anticipated
with
the
advent
of
ETS
phase
III.
These
concerns can be summed up as the certainty of increased cost through ETS without the
certainty of any direct upside throughmore profitable sales of electricity or heat.Whether
these fearsprovecorrectornot the immediate impactonthemarket is real.Facedwith the
uncertaintyof thepost2013situationand thepossibilityoferodedmargins investorswillbe
cautious.
Economiccompetitivenessofdistrictheatingsystems:
High
cost
of
refurbishment
and
construction
of
district
heating
network
systems
in
comparison of low costs of individual heat supply systems (boilers, etc, especially
attractive for investors of new buildings (Poland, Hungary, Czech Republic, Slovenia,
Slovakia,Lithuania,LatviaandSpain);
Regulationonofsettingenduseheatprice,whichnotalways reflectsallcostofheatsupply, especially in case of price regulation for customers protection (Poland and
Slovenia);
HighcostsofCO2emissionallowances(ETS)whichcouldsignificantlyincreasefinalheatpricesandcausedisconnectionofconsumers carbon leakage to thenonETS sector
(Poland);
Poorpublicattitude/acceptanceofdistrictheatsupply(mainlycausedfromthepastbadexperiences)(Bulgaria,Poland,Hungary,Slovenia).
EconomiccompetitivenessofIndustrialCHP
industrialcogenerationhastocontendwithparticularobstacles:alackofinterestandalackofinhouseknowhow;
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hightransactioncostsforinformation; unstablemarketconditionsasaresultofuncertainindustrialactivityandenergyprices; lackofpriorityaccesstothegrid; in the industrialsector in the lowtemperatureheatingarea, inadequateobligation toacceptandpayforelectricityfromcogeneration
Smallandmediumscalecogeneration
Highcostofinformationtransactionsaroundprojects; Nonstandardised connection procedures and documentation for connection of newplants;
OnerouscostsimposedbyDSOtoconnectiontoanduseofgrid.
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5.MemberStatesprogress inreviewingsupportmechanisms for thepromotionofcogenerationThe Cogeneration Directive requires Member States to review their progress against the
objectivesoftheDirective,initiallyin2007andthereaftereveryfouryearsevaluatingprogress
towards increasing the shareofhighefficiency cogeneration.Member states tendednot to
giveveryfullaccountsofsupportmechanismsbutrathertoincludecommentsontheschemes
duringeithertheirassessmentofeconomicpotentialorduringthefirstprogressreport.
SeveralMember States havemodified their support schemes during implementation of the
Directive. Notably Germany, Belgium, Spain, Greece, Slovenia and Luxembourg have
consciously chosen to enhance support for cogeneration. At the same time otherMember
States, notably the Netherlands, France and Hungary, have cut back on support for
cogeneration. These different changes in supportmechanismhighlight that there isnothing
within the Cogeneration Directive which will guarantee the support and promotion of
cogeneration per se.Rather,where there is a broader effective strategy to increase energy
efficiencyorasimilarprocogenerationdriverthen theDirectiveallowsspecialsupporttobe
put in place. Hence the Cogeneration Directive has not put in place a driver for the
developmentofcogenerationinEUMemberStates,ratheritishascreatedencouragementfor
thealreadywilling.
CODEprojectteamandRegionalmeetingcommentsAnoverviewof thewide rangeofsupportmechanism inplaceacrossEurope isgivenbelow.
Therealitythatthecogenerationmarket isbasicallyflat,andconsistsheavilyofreplacement,
showsthatthepoliciesinplaceareineffectiveingrowingthemarket.TheRegionalWorkshops
heard some criticism of support mechanisms in different Member States and discussion
emphasised the need to consider not just the individual support mechanisms but their
interactionwith
Member
State
taxes,
procedures
at
TSOs
and
DSOs
and
wider
energy
policy
goals. In the SouthWestern Region, Italy has a certification in place that is weak, poorly
structuredand insufficienttopromotecogeneration. InFrancethepurchaseobligationwhich
supported cogeneration in the 1990s has been steadily diminished. In theNetherlands the
favourableschemesofthepasthaveallbutdisappeared.
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MemberStatesinreportingtheirsystemshavetendedtoadoptschemesthatexistedforother
purposes (suchas renewables). It isnotclearhowmuchusehasbeenmadeof the schemes
thusfar
in
Northern,
South
Eastern
and
South
Western
Regions.
However
almost
all
Member
States in the Eastern region have a fully functioning system and have based their support
schemesonGoOcertifications.
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6.MemberStatesprogressinestablishingasystemofguaranteesoforiginforelectricityfromhighefficiencycogenerationSpain,Greece, Ireland,Cyprus,Luxembourg,HungaryandPortugalhavenotreportedontheir
schemeforGuaranteesofOrigin(GoO).ThecreationoftheGoOstructure isanactionunder
theDirective,whichrequiresstructuring,effortandinvestmentofresource. Performancehas
beenparticularlypoorinthisareaagainsttheduedateofJune2007.Thislackofcompletionof
actionsonGoOmayreflectalackofexperiencewiththistypeofcertification,thisiscertainly
thecaseforGreeceandCyprus.
AtableshowingthestatusofimplementationofGoOschemesisincludedinAnnex3.
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7.ConclusionsandrecommendationsTheMemberStateimplementationoftheCogenerationDirectiveintolawandthecompletion
ofreportingrequirementshavebeenslow.Giventhatsomanyelementsofthefinalnational
implementation and the reporting are currently absent, the overall performance has to be
consideredpoor.Thepotentialstudyreportinghashoweveridentifiedanadditional122MWe
capacity potential for cogeneration in Europe mainly in Member States whose existing
penetrationofcogenerationisunder20%.TheDirectivehasalsostimulatedactivitytoimprove
thepolicystructurearoundcogenerationinseveralMemberStates.
TheCODE
project
makes
the
following
recommendations
and
observations:
7.1RecommendationsAs reporting on progress is an ongoing activity under the Directive, the CODE project
recommends:
ProvideMemberStateswithaclearstructureforfuturereporting: Clearspecificationofenergyunitsto energy beused; Requirereportingofbothheatandelectricity; Definemarket segmentation for reporting including thegranularityof:1) industrysectors;and2)thermal/electricalcapacityofinstallations;
Clearmeasurescoveringthestatusof implementation.ForexampleregardingGoOthemeasureshouldcertainlyaddressvolumeofGoOissuedinlastyear,andpossibly
tradedvolume.
FurtherreportingrequeststoMemberStatesshouldemphasisetheneedtolookatthecooling,wasteheat,microandbioenergypotentialforcogeneration;
Member States should clarify explicitlywhat assumptions are being used, andwhatscenario is inbeingassumed, todeterminewhat iseconomicpotentialandwhat is
technicalpotential;
TheEuropeanCommissionshould fromnowonbe firmonMemberStatesand firmlyimpose reporting deadlines. The continual process of assessment, learning and
reportingunder theDirective is theonlypotentialbitewhich theDirectivecontains
andsomustbeenforced.
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7.2Observations TheDirectivehasbeensuccessfulincreatingaregulatoryframeworkforthepromotionof
cogeneration
as
seen
by
the
consistency
which
is
now
emerging
in
the
Member
States
legislationoncogeneration;
WhereMemberStateshavechosentomakecogenerationpartofastructuredenergyefficiencystrategy,theyhavealsoputactionsinplacetostarttoremovebarriersandto
improvesupportforcogenerationtoovercomemarketshortfalls;
EnhanceduseofcogenerationgenerallyacrosstheMemberStateshasnotyetemergedasavisiblemarketreactionto implementationoftheDirective.Theexceptionstothis
statementareGermany,Spain,BelgiumandSlovenia.AlthoughtheMemberStateshave
highlightedconsiderableadditionalpotentialforcogenerationinEurope,theyhavealso
highlightedsome
very
weighty
barriers
to
achieving
this
potential.
Special
efforts
in
the
areas of grid connection, regulation and administration, and financing need to be
addressed;
The majority of Member States appear to have produced a defendable nationalpotentialsreportbasedtoareasonableextentonabottomupapproach.Thereports
are generally conservative technically and vary considerably in the economic
assessment approach. Member States find opportunities in either industrial
cogenerationordistrictheatingaccordingtotheirhistory.Cooling,microCHPandbio
energyopportunitiesareinmanycasesunexplored,atthispointduetolackofreliable
technicaland
market
information.
This
tendency
not
to
look
for
wider
and
new
applicationsandthecurrentshortageofgood information inthenewestapplications,
suggests that opportunities were not enthusiastically sought rather history was
developed;
ThecogenerationpotentialsstudyisoneofthefewoccasionsonwhichMemberStateswereasked toconsider theenergy requirementsofheatwithelectricitydemandasa
byproduct. The result has been generally positive uncovering a potential to double
EuropeanCHP.Morefocusonheatinenergyplanningwillassistthefuturereporting.
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Annex 1:EuropeanCommission guidelinesonnational cogenerationpotentialsestimationandreporting
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Annex 2: Calculation methodologies for CODE project (conversionsandinterpolations)IntroductionThe published Member States reports were interrogated and where it was available the
followinginformationwascollected:
Existingcogenerationcapacity(intermsofelectricalcapacity)GWe Technicalcogenerationcapacity(intermsofelectricalcapacity)GWe Economiccogenerationcapacity(intermsofelectricalcapacity)GWe
SomeMemberStatesdidnotprovidealldataunderallofthesethreesectionsandwherethisis
missing
estimates
have
been
made
in
accordance
with
the
procedure
noted
below.
WehavecomparedtheexistingcapacitywiththeEconomicCapacitytoderiveanestimateof
theAdditionalEconomicCapacitytobeexploitedthroughoutEurope.
We have estimated the Primary Energy Savings (PES) and corresponding CO2 emissions
reduction that are available if this additional economic cogeneration capacity were to be
implemented.ThemethodologyforestimatingtheEnergySavingsandCO2emissionreduction
isnotedbelow.
MethodologytoestimateEconomicCapacitywheredataisnotreportedMost
Member
States
reported
their
existing
cogeneration
capacity
but
where
this
is
missing
the
latestEurostatdatahasbeenused.
SomeMemberStateshavereportedbothExistingCapacityandEconomicCapacity,thesedata
havebeensummedandtheratioofExistingtoEconomicforreportingcountriesinEuropehas
beennoted.
WhereaMemberStatehasnotreportedEconomicCapacity,ithasbeenestimatedbyapplying
theEuropeanratiotoitsExistingCapacity
MethodologytoestimateEnergySavingsfromtheAdditionalEconomicCapacityMemberStatesarerequiredtocompletereportsonthebasisofcompliantcogeneration,this
impliesthatcogenerationincludedmusthaveachievedPESofatleast10%.However,Member
States have not reported on the actual Energy Savings Achieved. In order to estimate the
EnergySavings,threeassumptionsmustbemade:
RatioofCapacitytoOutput. EnergySavingsattributabletoadoptionofcogeneration EnergySavingscanbeassumedaselectricity
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The ratio of Capacity to Output was derived from the latest Eurostat data (2007) for
cogeneration employed in Europe by dividing the installed capacity by the total electrical
generation.
Theachievableenergysavingwasdeemedtobe10%asthis istheminimumrequiredbythe
Directive.
ThetotaladditionalEconomicCapacitywasfoundbysubtractingtheExistingCapacityfromthe
EconomicCapacityasderivedabove.
TheEnergySavingwasthenfoundbymultiplyingtheAdditionalEconomicCapacitybytheratio
ofCapacitytoOutputandmultiplyingthisresultby10%.
Methodology to estimate Carbon Dioxide emission reductions attributable to the EnergySaving
TheEnergySavingderivedaboveisintheformofelectricity.TheaverageCO2concentrationof
electricity generated in Europe is quoted as 0.45 kg/kWh. To estimate the CO2 emission
reductionsavailablethetotalannualEnergysavingwasmultipliedby0.45kg/kWh.Thevalueof
this potential CO2 reductionwas found bymultiplying by the price of 39 / ton of CO2 as
quotedintheCommissionimpactassessment.
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Annex3:StatusofimplementationofGuaranteeofOriginsschemesintheEReportingobligationsofCogenerationDirective2004/08/EC
(situationupto05/10/2009)
MS
ProgressReport AnalysisofNationalPotential BarriersforCHP/administrativeproceduralsituation
[Art10(2)Art6(3)] [Art10(1)Art6(1)] [Art10(1)Art9(1&2)]dueon21/02/2007andthen
each4years dueon21/02/2006 dueon21/02/2006
BE received received receivedBG
received
received
received
CZ received notreceived notreceivedDK received received receivedDE received received receivedEE received received receivedIE notreceived received receivedEL received received receivedES received received receivedFR received notreceived receivedIT waitingfortranslation received waitingfortranslationCY received received receivedLV received waitingfortranslation waitingfortranslationLT received notreceived waitingfortranslationLU notreceived waitingfortranslation notreceived
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HU notreceived notreceived notreceivedMT received received receivedNL received received receivedAT received received receivedPL received received receivedPT notreceived notreceived notreceivedRO received received receivedSI received received receivedSK received received receivedFI received received receivedSE waitingfortranslation waitingfortranslation waitingfortranslationUK received received received
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Annex 4: Regional reports on Member State reporting under theCogenerationDirectiveAnnex4.1:NorthernEuropeRegion
Annex4.2:EasternEurope
Annex4.3:SouthWesternEurope
Annex4.4:SouthEasternEurope
top related