Example of EU co-funded project CODE: Cogeneration Observatory and

Dissemination Europe

SEMINAR: FUNDING FOR COGENERATION PROJECTS

December 2009, Sofia C. Theofylaktos, HACHP

www.cogeneurope.eu

Cogeneration Directive 2004/08/EC requirements

Estimate Cogeneration

potential

Identify Barriers

Review support mechanisms

Put Guarantee of origin and statistical

reporting in place

Report on Progress

• Cogeneration Directive 2004/08/EC completed in Brussels end of 2008• European Directive developed under the energy strategy to promote cogeneration for its contribution to security of supply and energy efficiency.• Sets up a policy framework for the promotion of HE cogeneration• The Directive requires member states to report on several aspects their cogeneration use and promotion – Art.6 & ANNEX IV

www.cogeneurope.eu

• 30 month project funded by IEE and COGEN Europeand 3 national CHP associations

• Independent view of the progress of member statesunder the Directive

• Regional structure across Europe gathers input fromstakeholders on impact of the Directive implementationas it develops

What is the CODE Project

About CODE

• Established in October 2008 to independently monitor member state progress under the COGEN Directive 2004/08/EC

• Initiated by COGEN Europe and COGEN National Associations. Supported by the European Commission under the IEE project.

• Project leader is COGEN Europe and structure of work is through 4 European regions.

4

About CODE

• Activity of the Project is in 3 Phases following the structure of the CHP Directive – Potentials Study analysis in 2009

– Barriers and Support mechanisms analysis in 2010

– Best Practice and Progress reporting in 2010/2011

– CHP Roadmap for Europe

• Work structure in each Phase– Project team perform analysis and draft report

– Regional meetings review and feedback on report

– Final Report Produced.

5

CODE structure

Four Regional Groupings :• HACHP: Greece, Cyprus, Bulgaria, Romania• UK CHPA: United Kingdom, Ireland, Netherlands,

Belgium, Germany, Austria, Denmark, Sweden, Finland

• COGEN Slovenia: Slovenia, Hungary, Poland, Czech Republic, Slovakia, Estonia, Latvia, Lithuania

• COGEN ITALY: Italy, Spain, Portugal, Malta, France, Luxembourg.

6

CODE Phase 1 :CHP National Potentials Studies

• Analysis of member states national potentials studies by CODE project team

• Regional meetings to gain feedback and additional input– Regional Meetings: May (Milan), September (London,

Warsaw), October (Athens)

• European Parliamentary Launch of Phase 1 findings– October 08 European Parliamentary Launch of CODE

analysis of national potentials studies.

7

CHP DATA COLLECTED FOR SE EUROPE M-S

• Bulgaria

•Cyprus

• Greece

• Romania

www.cogeneurope.eu

National Potentials Reporting by member state

www.cogeneurope.eu

National Potentials Reporting by member state.

CHP in SE Europe

• In countries with planned economy, CHP systems were developed in accordance with DH systems and for industrial purposes.

• After political changes in 90s, industrial production was severely reduced and DH systems were ruined.

• In some countries (i.e Turkey), the increase of CHP installations was remarkable (4 MWe in 1994, 4500 MWe in 2007; an increase of 1125%)

• In other countries (i.e. Greece) the penetration of CHP was limited, due to the monopoly of the electricity company and other barriers.

• In some countries (i.e Romania) CHP was strong few years ago, but now is struggling to start again

• Little penetration of CHP in tertiary sector and in m-CHP.

CHP in SE Europe

In general

• Existing ‘know-how’ in CHP installations

• CHP is used mainly for industrial purposes

• The majority of CHP systems are steam/gas turbines

• In many countries of the region CHP systems are strongly connected with District Heating, but many of them need rehabilitation and therefore financial assistance.

• Operation of newly DH systems in Greece creates a remarkable expertise (technical, maintenance)

• No tri-generation applications.

Percentage of cogenerated electricity

2004 2005 2006 2007

BUL 7.3 6.1 6.0 9.4

CY 0 0.3 0.3 0.3

GR (*) 1.5 1.7 1.4 1.6

ROM 26.4 26.2 18.0 10.7

EU-27 10.5 11.1 10.9 10.9

(*) 1997: 2.2% Source: Eurostat

Legal framework on CHP in SE Europe

• Many of SE European countries are complying with EU Directive 2004/8/EC

- Bulgaria: Energy Act – No 74/8/9/2006

- Cyprus: L. 174(I)

- Greece: L. 3468/06 & L. 3734/09 –MD 1420/15/7/09

- Romania: GD 219/07 – ANRE Order 13/07GD 1461/07

www.cogeneurope.eu

There is significant industrial potential for CHP in Europe. In the larger economies this makes up around 50% of the potential.

In southern parts of Europe, the industrial potential and tertiary sector potential have been stressed over the district heating potential.

Significant potential exists in new Member States particularly for refurbishment of district heating schemes and their upgrade to include modern cogeneration where previously only heat was distributed. This is universally the case where a large district heating infrastructure already exists.

In many new Member States the highest share of economic potential in the evaluated technical potential is linked to the modernisation and upgrade of cogeneration units in district heating systems, with the replacement of existing steam turbines by combined cycle units running on natural gas.

Regional observations

www.cogeneurope.eu

• There is a low level of reporting of technical potential among the Member States.

• Where technical potential has been identified separately, a wide range of sectors have been highlighted.

• Potential is seen across the full capacity size ranges of CHP installations from micro to very large scale.

• In general, little focus has been put on the potential associated with micro CHP, cooling or bio-energy, and these remain a potential upside to the published figures.

Conclusions

Proposals

• In the 21st century cooperation in Energy between SE European countries should become more real.

• Distribution networks, N.G. and oil pipelines -planned and/or under construction - show the way.

• Promotion of Decentralised Tri-generation Units Used for the Operation of DHC Systems in the Region.

• Cogeneration of Heat/Cool and Power is a field where cooperation and common actions should take place, benefiting the Environment, the Economy of the region and improving the living standards of the inhabitants with continuous energy supply, better quality, primary energy sources conservation.

• Crucial the role of CODE for the Roadmap to 2020.

COGEN EuropeEuropean Trade Association for thePromotion of Cogeneration• Representing the interests of the supply chain in the

cogeneration heat and electricity market• Aiding the promotion and expansion of cogeneration in the

European market.• Providing timely and appropriate information for policy

makers on issues affecting cogeneration.• An advocacy organisation participating in the European

Union’s legislative process Structure• National Members

– National Promotional Organisations - 21• Company Members – 72

– Pan European Companies– Associate members

Activity• EU Parliament lobby&EU Commission lobby• IEE projects and COGEN working groups• CENELEC working groups• Outreach and member supportSecretariat : 4 people

www.cogeneurope.eu

Good news: cogeneration inside!

Chemical industry NetherlandsBerlaymont

BundestagDistrict heating Ljubljana

www.cogeneurope.eu

Examples of CHP in real life

Akzo Nobel Delesto industrial CHP plant. It provides steam and

power to facilities in Delfzijl where Akzo Nobel produces salt,

chlorine and Derivatives. It produces 520 MW of power, partly

consumed by the Chemical Park Delfzijl (including Akzo Nobel),

partly supplied to the Dutch high voltage grid. It is the biggest

cogeneration site in the Netherlands.

Dachs G 5,5 micro CHP on natural gas,

Electrical output: 5,5kW

Thermal output: 12,5 kW

District heating CHP plant in Ljubljana is producing

electricity and supplying the city with hot water. It has 124

MW of installed electrical capacity and 350 MW of installed

heat capacity. It could produce 550 GWh of electricity and

1650 GWh of heat per year. It is the biggest cogeneration

site in Slovenia.

Greenhouse: possibility to use medium size CHP

(150kW).

www.cogeneurope.eu

Web site of CODE:

www.code-project.eu

changing the way

europe provides heat and electricity

for a substainable future

WWW.COGENEUROPE.EU