2017 cogen europe national snapshot survey · 2017 cogeneration national snapshot survey...
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2017 COGEN Europe National Snapshot Survey
Executive Summary
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Overview of CHP in Europe
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CHP in Europe - OverviewElectricity and Heat Generation (2007-2015)
3Data source: European Commission, Eurostat, 2017
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CHP Generated Electricity and Share in Total
Electricity Production by Country in 2015
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
10
20
30
40
50
60
70
80
90
Ger
man
y
Ital
y
Net
her
lan
ds
Po
lan
d
Fin
lan
d
Spai
n
Slo
vaki
a
Un
ited
Kin
gdo
m
Den
mar
k
Swed
en
Fran
ce
Be
lgiu
m
Cze
ch R
epu
blic
Au
stri
a
Po
rtu
gal
Ro
man
ia
Hu
nga
ry
Bu
lgar
ia
Latv
ia
Irel
and
Gre
ece
Cro
atia
Lith
uan
ia
Esto
nia
Slo
ven
ia
Luxe
mb
ou
rg
Cyp
rus
Mal
ta
TWh
CHP electricity generation (left axis)
Share of CHP in total electricity generation (right axis)
Data source: European Commission, Eurostat, 2017
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CHP Fuel Mix in the EU (2007-2015)
CHP fuel mix strongly influenced by fuel price dynamics & support schemes.
RES is increasing its share in the CHP fuel mix, reaching 20% in 2015.
18,0% 43,5% 20,6% 4,9% 13,1%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2007
2008
2009
2010
2011
2012
2013
2014
2015
Solid fossil fuels and peat
Natural gas
Renewable sources
Oil and oil products
Other fuels
Data source: European
Commission, Eurostat,
2017
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2017 Cogeneration National Snapshot Survey
…representing 95% of installed capacity in EU28 & Turkey
Expert contributions from 20 CHP national experts…
…capturing the European CHP industry sentiment
…expanding outside of Europe, with guest contribution from Japan
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CHP Market Developments in Europe
(2012-2016)
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CHP Installed Capacity CHP Generated Electricity
Growth
No change
Decline
No data
Generally stable installed
capacity but…
…more pronounced
standstill or decline in
generated electricity and
share in total electricity
production
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Main Factors Affecting CHP Markets at National Level
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Stable support schemes in some markets (especially for RES)
Positive on-site spark spreads in key markets (positive impact on small scale CHP)
Depressed wholesale spark spreads/low wholesale electricity prices
Unpredictable regulatory framework
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Policy Environment
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0%
10%
20%
30%
40%
50%
60%
70%
Positive
Negative
No change
Not clear
National Comprehensive Assessments of the
Potential for CHP/DHC (EED, Art 14.1)
Developing policy to promote CHP/DHC based
on indentified potential (EED, Art 14.2)
Eligibility of CHP under Energy Savings
Obligation (EED, Art 7)
Electricity system operators facilitating grid
access for CHP (EED, Art 15)
Percentages represent the share of CHP in
EU28 impacted by the implementation of
specific Energy Efficiency Directive (EED
provisions
Implementation of CHP provisions in Energy Efficiency
Directive – Experts’ Evaluation
10
Hardly any follow up in terms
of additional policy to realise
the identified potential
Member States
assessments of
CHP/DHC potentials
“nice-to-have”
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Available Support for CHP in EU28 & Turkey in 2016
11
0
1
2
3
4
5
6
7
8
9
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Feed-in Tariff Feed-in Premium Quota Obligation
& Certificates
scheme
Investment
aid/Capital grant
Tax incentives Other No
Share of CHP market (Left Axis) # of countries (Right Axis)
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CHP Markets Outlook
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5-year CHP Markets Outlook
In nearly 60% of the CHP markets in
Europe, experts expect steady and
moderate growth in the next 5 years.
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CHP in Europe OutlookPrerequisites for Growth
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Better prospects for the CHP sector are contingent on:
✓An ambitious implementation of the EED
✓A favourable and stable policy environment taking an integrated view on the energy
system & recognising the flexibility of CHP plants
✓(EU) state aid policy adapted to potential and needs of CHP sector
✓Applying fair/real-use grid tariffs charged on electricity self-produced & - consumed
✓Improvement of energy market conditions
✓Better awareness of CHP technologies
✓Improved investment/financing opportunities
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Getting the Clean Energy Package right for Cogeneration
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Energy Efficiency Directive – Key asks
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Apply energy efficiency across whole energy value chain
→ Account for both primary AND final energy
Set accurate EU PEF (Annex IV)
→ Proper methodology & value – current efficiency & 2.3 or higher
→ For EED only
→ For Ecodesign & Labelling of heaters account for seasonality and
electrification impact on increasing carbon intensity of heating sector
Strengthen Energy Savings Obligation (article 7)
→ Ensure cogeneration is the preferred alternative to final energy saving up to 25%, as part MS flexibility to deliver Art 7 obligation
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Renewable Energy Directive – Key asks
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Support Biomass use in high efficiency cogeneration for installations larger than 20 MWth (thermal input) and limit alternative support where cogeneration is not feasible (Article 26.8)
Consider high efficiency cogeneration to increase renewable heat share in energy consumption
→ Ensuring cost-effective, reliable and efficient heat supply to different types of energy consumers (Article 23)
Reward efficient and low carbon flexibility solutions that support the integration of electricity from intermittent renewable
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Governance – Key asks
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Cogeneration should be accounted in Member States Climate & Energy Plans (Art 19 & Art 4)
Member States should report on supply side efficiency as part of Annex II
References to limiting curtailment of cogeneration should be maintained as part Annex I
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Electricity Market Design – Key asks
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Maintain priority of dispatch for existing cogeneration projects & provide adequate definition for “significant modifications”, re-assuring market operators that the business case for their investment will not be lost (Electricity Regulation, Articles 11 and 12)
Maintain guaranteed access to the grid for high efficiency cogeneration, so limit curtailment as last resort solution especially for self-consumed electricity (ib.)
Include cogeneration in local economy as part of adequacy assessments(Electricity Regulation, Article 19).
Ensure transparent, cost-reflective and non-discriminatory network tariff structures based on the real use of the grid (Electricity Directive, Article 15.2).
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Cogeneration outside Europe - Japan
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Sneak Peak on Japan!
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Positive Market Trend
Political Backing
Optimistic Outlook
- CHP seen as key for security of supply
- Rapid growth in residential market
- Market entry of highly efficient CHP models
- CHP supported through tax incentives and subsidies (e.g. fuel cell micro-CHP) as part of energy & climate strategy
- New Feed-In Tariff for RES CHP
- Present growth expected to continue in the coming 5 years
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COGEN Europe • The European Association for the Promotion of Cogeneration
Avenue des Arts 3-4-5, 1210 Brussels, Belgium • T +32 (0)2 772 82 90 F +32 (0)2 772 50 44 [email protected] •
www.cogeneurope.eu
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