Energy Adi Golbach Managing Director B.KWK – The German CHP Association 17th Mai 2011, Dublin 1 Efficient Energy Production with Cogeneration – German

Energy

Adi Golbach

Managing Director

B.KWK – The German CHP Association

17th Mai 2011, Dublin

1

Efficient Energy Production with Cogeneration – German Experience,

Situation & Prospects

Overview

• B.KWK – The German CHP Association• Facts & Figures• Potentials & Problems• Policy & Perspectives• CHP examples in Germany

Dublin 217th Mai 2011

The B.KWK - The German CHP Association

all kinds of operators

all kinds of technologies

all kinds of fuels

all branches

bundle forces

integrates

provides information

interferes

17th Mai 2011 3Dublin

Overview



The Background

17th Mai 2011 Dublin 5

Climate Change

Ressource scarcity

„Always look on the bright side of life.“

The three bridges to sustainable energy supply

6

Resourceusage

11 t CO2/a x Person

2 t CO2/a x Person

Higher efficiency CHP

Renewable energy

Change in needs

17th Mai 2011 Dublin

Energy streams in Germany

Dublin 7

Source: Arbeitsgemeinschaft Energiebilanzen 2007

25% of PEC

17th Mai 2011

Mt of hard coal equivalents

8

Systemvergleich KWK vs. getrennte Erzeugung


The Difference

Dublin 9

Power Plant CHP

17th Mai 2011

The German heating market – a system of enormous wasting exergy

Gas48%

heating oil32%

district heating

14%

Electricity4%

other3%

heating energy


• Conventional heating technology is squandering EXERGY

• 70 °C heat produced from simply burning gas with 1100 °C squanders more than 80% of exergy

• Electricity is pure exergy• So it‘s better to produce as much

electricity as possible from fuels

CHP Fuels in Germany in Plants > 1 MW elt, 2005

Dublin 11

Source: Eurostat

17th Mai 2011

Total 78 GWh

Nat. GasHard CoalLigniteMineral OilBiomass & Waste

CHP in the EU


Dänem

ark

Finnlan

d

Slowak

ei

Polen

Islan

d

Tsche

chisc

he R

ep.

Portu

gal

EU 25

Italie

n

Bulgar

ien

Slowen

ien

Spanie

nIrl

and

Griech

enlan

d

Norweg

en

Kroat

ien *

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Source: EUROSTAT 2/2008

CHP share in electricity production 2007

Overview



CHP Potential in Germany

14

(As of March 31, 2006)

economically feasable up to 2020; fiction: no political barriers


Barriers against CHP

• Lack of information about chances and technical details (sleeping giant)

• Communal or industrial CHP in opposition to the strategic objectives of some big electricity companies

• Very ambitious pay-back criteria in industry (< 3 years)

• Unstable prospects regarding fuel security and prices


Benefits of CHP

• Saves energy resources• Climate protection• Saves money in the medium and long run• Reducing energy dependency• Substitution of energy import expenditures by

technical and economical knowledge• Creates new jobs• Higher electric grid stability, higher security of

supply• Smart and flexible to operate


Overview



2007 G8 Summit Declaration

• The G8 Summit Declaration (June 2007) highlights cogeneration in the section on Energy Efficiency.

• In section 70. Power Generation: „… adopt instruments and measures to significantly increase the share of combined heat and power (CHP) in the generation of electricity",


The German government‘s new energy and climate package from August 2007

Dublin 19

Measures Reduction up to 2020 in Mio. t/a CO2 equ

Doubling CHP share in electricity production to 25% 20

Reducing electricity consumption by 11 % 40

Substitution of old power plants by new ones 30

Higher share of RES in electricity production 55

Reducing energy consumtion of houses by modernisation of buildings and heating systems

41

Higher share of RES in heating 14

Higher efficiency in the traffic and rising share of bio fuels up to 17 %

30

Reduction of non-CO2 gases 40

17th Mai 2011

New CHP act 2009

• Target: doubling CHP share in electricity production to 25% in 2020• Focus on new installations being brought into operation by the end

of 2016• Bonus system again; paid finally by the electricity consumers (max.

0,3 Cent/kWh)• Bonus on electricity fed into the public grid or directly used

> 2 MW elt -> 1,5 ct/kWh over 6 years or max. 30.000h, industry 4 years only

50 kW to 2 MW -> 2,1 ct/kWh over 6 years or max. 30.000h

≤ 50 kW -> 5,11 ct/kWh over 10 years

• Max. 600 Mil €/a for CHP plants• Max. 150 Mil €/a for district heating investments (20% subsidy if at

least 50% CHP heat)• Monitoring in 2011• Start 1.1.2009


Renewable Electricity Act 2009

• Higher Bonus for CHP-electricity (3 ct/kWh)• Technology Bonus for innovative CHP technologies• Priority for grid-connection of CHP-plants• Use of liquid biofuels only if sustainability certificated• Practicable conditions for TPA of biomethane


Feed-in-tarifs for electricity from biomassBased on the Renewable Energy Act 2009

Biogas Biomethan Biomass

Basic tarif< 150 kW< 500 kW< 5 MW

11,679,188,25

11,679,188,25

11,679,188,25

Bonus for electricity from energy crops< 500 kW< 5 MW

74

74

64 / 2,5

Manure bonus< 150 kW< 500 kW

41

00

Technology bonus generalTechnology bonus gas processing

2 20-2

2

CHP bonus 3 3 3

Cent/kWh


Renewable Energy Heat Act 2009

• Obligation to use pro-rata renewable energy (e.g. solar panels, pellets)

• alternatively use of CHP heat (≥ 50 % produced in CHP)

• Obligation for new buildings after 1.1.2009• Legitimization of local district heating obligation

by reason of climate protection


The governments energy plan

• Sept. 2010: extension of the operating time of nuclear power plants by an average of 16 years


The governments energy plan

• After Fukushima: • Reviewing the prolongation

of the operating time of nuclear power plants

• “„Energy turn” towards faster growth of renewable energy and higher efficiency


Nuclear Power Plants in Germany

Energy Turnaround:The government new 6-point program

1. Quickly enhance Renewable energy

Core of the energy turnaround is the rapid expansion of renewable energies. The wind energy has the biggest potentials.

2. Quickly develop electricity grids and storages ...to transport electricity from wind power plants in the north to the south. Expansion of flexible power stations and storage, serving to stabilize the power supply.3. Consistently increase Energy efficiencyBy 2020 the heat demand of buildings shall be reduced by 20 percent. Encourage an ambitious renovation.4. Quickly build flexible power plants

In future, flexible power plants must offset the increasingly fluctuating power generation from renewable energy sources. Gas power plants have a special role. The construction of highly efficient and flexible power plants will be promoted in accordance with EU requirements. This is limited to operators whose share of the German power generation capacity is up to five percent.5. Reorienting Energy ResearchThe funds for research into networking and storage should be increased to 500 million € by 2020.6. Participation of Citizens

People should be fully involved to enable a broad dialogue on the necessity of restructuring the energy supply.


27

Perspective RE Development in Germany

Trends in electricity generation from renewable energies 1991-2030, based on the Lead Study prepared by the DLR Institute for Technical Thermodynamics

The energy future will be decentralised

Dublin 28

Tomorrow: distributed/ on-site generation with fully integrated network management (INTELLIGENT GRIDS)

Today

cleaner, cheaper and more reliable17th Mai 2011

The new role of CHP: flexible electricity production complementary to wind and

solar energy


Important but neglected: Information & PR

Industry District heating


Object CHP

Economics by efficiency

A lot of advantages but lack of awairness

Big potentials & chances for many

people

31Demo-Kongress 2009

WESHALB DIE FERNWÄRME EINE DACHMARKE BRAUCHT!

6.11.2009

Overview

• B.KWK – The German CHP Association• Facts & Figures• Policy & Perspectives• CHP examples in Germany


I II / B III / A III / B, neu

1986 1967 1975 2005

Hard coal Hard coal Natural gas Natural gas

2025 2012 2025 > 2030

102 MW 144 MW 41 MW 239 MW

139 MW 163 MW 88 MW 167 MW

630 GWh 811 GWh 10 1238 GWh

86 GWh 23 GWh 8 GWh 618 GWh

Plant

Operation since

fuel

Operation up to

elektr. capacity

Therm. capacity

Heat production 2006

Elect. production 2006

District heating CHP Stadtwerke Duisburg AG


Industrial CHP, 40 MW el.Chemical industry, Grenzach


Small scale CHP, 225 kW el.public swimming pool Schwäbisch Hall


Micro CHP, 5 kW el.„Dachs“ 12-appartment house


Summary and main results

• Energy efficiency is a core element of a sustainable energy strategy

• Conventional heat production in boilers is a big waste of exergy

• CHP is a core element of an energy efficiency strategy • CHP is being discovered more and more by policy makers• CHP has a large potential - in Germany and anywhere• The Target of doubling CHP in Germany is a big chance for

industry and investors• We have to make our choice on the future electricity

production path – in fact environment tells us that we don’t have a choice

• By using CHP potential and by overcoming barriers against CHP we may learn from each other


Thank you for your attention!

Consulting on CHP in [email protected]


Energy

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Documents

Energy Adi Golbach Managing Director B.KWK – The German CHP Association 17th Mai 2011, Dublin 1 Efficient Energy Production with Cogeneration – German