DIRECTION DE LA RECHERCHE

Marc FLORETTE

Jeudi 29 mai 2008

The advantage of mCHP as a high efficiency gas solution for the residential market

Gas industry micro CHP workshop 2008

May 29-30th, 2008

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Natural Gas is “under pressure” :

The requirement for thermal energy in the residential market is decreasing

•French target in new buildings: 50kWh/m²/an (2012); energy positive building (2020)

The image of natural gas is declining

•Fossil energy with associated CO2 emissions vs. renewable energy sources with very low or no emissions

The condensing boiler is saturating the market in some countries (e.g. The Netherlands). New advanced gas equipment is needed

Distribution of electrical heat pumps in dwellings is increasing

The competition between energy forms (Electricity, Renewable,…) and players (incumbents & new entrants) has intensified in Europe

Natural Gas in Europe – a new era

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Gas utilities need to keep gas in the home!

Gas sales in the residential market will enforce the viability of the gas infrastructure

Need to elevate the interest in natural gas to maintain sales and / or increase the number of customers

Need to position natural gas as a modern product through innovation (e.g. mCHP, Gas Heat Pump, NGVs, coupling with renewable energy sources)

Need to raise customer loyalty by offering new products and services especially during market liberalisation in Europe

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5 mCHP technologies are under development

mCHP definition:

• Technology which produces both Heat and Power from a unique energy source (natural gas, propane, biomass…) with power range of 1kWe to 50kWe.

5 technologies are competing for viability:

TechnologiesInternal Combustion

EngineStirling Engine

RankineMicro-turbine

Fuel Cell

State of technical development ++++ +++ ++ + +

Market priorityMulti-family houses,

Small&Medium Enterprises

Individual dwellings

Not defined yet

Not defined yet

All markets

Electrical efficiency

25-30% 10-20% 10-20% 10-30% 35-50%

Power 1-5kW 1-10kW 1-5kW 1-50kW 1-50kW

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2 key types of mCHP are available in Europe5kW Internal Combustion Engine (ICE)

• Product: 5kW ICE coupled with a gas boiler

• Market: Multi-family homes, Small & Medium enterprises

• Manufacturers: Senertec, Vaillant…

• Number of units installed in Europe: 20 000

• Price: ~15 000€

• Marketed since the end of the 90’s

1kW Stirling Engine

• Product: 1kW Stirling with a condensing boiler

• Market: individual dwellings

• Manufacturers: Remeha, Baxi, MTS, Whispergen…

• Number of units installed in Europe: 2000

• Price: ~5000 €

• Market launch in 2009 in Europe

Outside Europe…

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mCHP in France Why does Gas de France focus on 1kW mCHP ?

The French market condition is not so attractive for 5kW- mCHP

• Low profitability High investment costs : boiler+ mCHP French electricity export prices are relatively low

• Low CO2 emissions reduction Base operating mode

But, 1kW Stirling is of great interest :

• Integrated with a gas boiler

• Adequately covers most of a house power demand

• Import/Export prices make auto-consumption profitable

• Minor additional investment compared to larger mCHP system

• Reduces C02 emissions at peak load power generation (base load is by nuclear power plants)

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Benefits of mCHP

Energy and Environmental performances are attractive

• Savings up to 15% of primary energy

• CO2 reduction up to 25%/ reference gas solution

=> Answers to environmental concerns and thermal regulation enforcement

Money saving

• Reduction of the customer’s energy bill

Market pull approach

• Decentralized energy => controls energy consumption, “the customer becomes a producer”

Benefits for the grid:

• Reduction of grid losses (up to 7%)

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Reduces high CO2 emissions during

winter due to electrical

heating

• Based on the marginal allocation approach, the CO2 content of electric heating consumption goes up to 600 gCO2/kWh

Study leads by French transport system operator RTE in collaboration with French national energy agency ADEME and published in 2007.

Results confirmed by Gaz de France studies.

1kW mCHP produces electricity at the same time as electricity is consumed for heating (winter season) and then replaces fossil fuel fired power plants (Coal, Oil, Gas)

• 1 ton of CO2 savings/year compared to a customer equipped with a condensing boiler and electricity supplied by the grid. It represents 20-30% CO2 savings. Same CO2 savings compared to an electrical heat pump (COP=2.5)

CO2 benefits of 1kW mCHP in France

Even in France, where nuclear is widely utilized, 1kW mCHP reduces national CO2 emissions.

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CO2 benefits and energy savingsCO2 emissions benefits

Primary energy savings

0 100 200 300 400 500 600 700

Best condensing boiler available (annual effi ciency 95%/LHV)

1kW mCHP Stirling

Gas heat pump

Direct electrical heating

Electrical Heat pump (annual COP = 2,45)

Best electrical heat pump available (annual COP = 3,5)

Natu

ral g

as

hea

ting

Ele

ctri

cal

hea

ting

gCO2/kWh for heating

0,00 0,50 1,00 1,50 2,00 2,50 3,00

Best condensing boiler available (annual effi ciency 95%/LHV)

1kW mCHP Stirling

Gas heat pump

Direct electrical heating

Electrical Heat pump (annual COP = 2,45)

Best electrical heat pump available (annual COP = 3,5)

Na

tura

l ga

sh

ea

tin

gE

lect

rica

l he

ati

ng

kWh-ep/kWh for heating

25% CO2 savings/year compared to a condensing boiler (eff.: 95%) or an electrical heat pump (COP=2.5)

15% primary energy savings/year compared with a condensing boiler (eff.: 95%) or an electrical heat pump (COP=2.5)

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Barriers to launching a 1kW mCHP product

Barriers/Uncertainties Today Target Comment

Commercial product price

6000€ - 8000 €4500€ - cost not to exceed 1.2 of a gas

boiler

High influence on profitability

ReliabilityNot determined yet (only a few years in

operation)

20 years - 40 000 hours

Feeback from field trials on a short time

period only

Grid connection delay in France

> 6 months < 1 monthProcedures are

complex and time consuming

Support measures in France

Export electricity price (=import price

without tax)

Tax credits, White Certificates, subsidies…

Gaz de France is highly involved

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Thank you for your attention