cogeneurope.eu

COGEN Europe

Refurbishment of existing CHPs improving industrial productivity The Spanish Case and EU Scaling Up

cogeneurope.eu

Spanish CHP: Key for Energy and Industry

2

2015: CHP accounts for 10% electricity generation and 25% of NG consumption in Spain. 600 industries that produce 20% of Industrial GDP and maintain 200,000 direct industrial jobs

COGENERATION Energy in Spanish

Industry 2015

INDUSTRY more Efficient with CHP

Production

• 10% of electricity generation (25 TWh). 25% of Spanish NG consumption (80 TWh) (40% of total NG consumed in industry)

• Energy saving >1.5% total Spain Primary Energy Consumption

• 600 industrial CHP food & beverage, chemistry, P&P, refinery, ceramic, automotive, textile …

• 20% industrial GDP (23,000M€) is produced using CHP

• 50% industrial manufactured products are exported

• 200.000 direct industrial employees

2

cogeneurope.eu

Cogeneration = Heat intensive industry

“DIRECTIVE 2004/8/EC ... on the promotion of cogeneration based on a useful heat demand in the internal energy market”

3

KEY TOOL for

HEAT INTENSIVE INDUSTRIES

+ Energy efficiency + Competitiveness

+ Export capability + Industrial Activity + Employment

+ Environment/Climate action + Knowledge & energy

“expertise”

cogeneurope.eu 4

RENEWAL & RETROFIT Targeting Industry Renaissance Activation

CHP Renewal & Retrofit Plan:

Nowadays 55% of installations > 15 Years Old

2020: 95% installations > 15 Years Old

Investment in Best Available Technologies: New production features more

efficient, flexible and dynamic.

Impulse energy efficiency, competitiveness and climate action in

industrial installations

Promote manufacturing investment cycle. Provide industries with

confidence and signals to re-invest re-industrialize and re-allocate

industrial production in Spain through EE HE CHP Action.

0

200

400

600

800

1,000

1,200

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1991 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Nº Instalaciones MW Evolución de potencia con > 15 años

Nº INSTALACIONES CON 15 AÑOS POTENCIA ACUMULADA CON 15 AÑOS

3037 MW

500 installations

56% of installations older than 15 years are not running 5434 MW

854 installations

In 2020, another 2,400 MW will

reach 15 years in operation

cogeneurope.eu

CHP installations will have to evolve towards a new kind of facility energy markets oriented: more efficient, more flexible and more

dynamic

5

HE CHP can achieve competitiveness for EEI

New energy markets represent new challenges and new opportunities

CHP right Strategic Partner for energy-Heat intensive industries that intend to improve their competitiveness through managing and

expertise in energy markets opportunities:

Wholesale Electricity Markets flexibility oriented, System balancing, RES integration friendly, Capacity MK, NG Spot MK, Heat MK, EE MK,

Proximity and local E MK, ESCOs…..

cogeneurope.eu 6

1,500 million € to be invested in 4 years

Targeting for R&R 2,500 MWe

Achieving 20% of National Effort to EE 2020 Target

RENEW& RETROFIT CHP facilities:

Invest in efficiency refurbishment of CHP installations

Improves hundreds of Spaniard industries

competitiveness, as well as national exports

Best Available Technologies

Employment

Industrial contribution to climate action

Gaining energy

savings for the country

cogeneurope.eu

EU CHP: Key Opportunity for Energy and Industrial

Reinnasance

7

CHP Energy and Industry 2013

INDUSTRY more Efficient with CHP

Production

• 12% electricity generation (382 TWh).

• 15% EU heat generation.

• 45%, based on NG consumption (295.7 TWh out of 382 TWh)

• Industrial CHP: food & beverage, chemistry, P&P, refinery, ceramic, automotive, textil …

• 20% industrial GDP is produced using CHP

• 35-45% of EU industrial GDP is CHP suitable

7

cogeneurope.eu

Opportunity both for EU and European industries

8

Every 1% of energy efficiency improvement implies a 2.7% improvement of European NG imports Security of Supply improvement

CAN EU HE INDUSTRIAL CHP INVEST in R&R >25.000 M€ in 4 years at existing manufacturing facilities?

Ignite Industrial Renaissance through Best HE CHP

HE CHP can achieve additional 1-2% required for 20% EE 2020 target (projections estimate to reach 18%), accelerating investments in Industrial EE in 2020 horizon.

European industries are ready to invest in refurbishment of installations and new capacity. There is room to increase CHP deployment and industrial competitiveness.

cogeneurope.eu 9

Reap the benefits that cogeneration offers to European energy system and EI Industry.

The main Energy and climate framework for coming years is currently under discussion: EED, RED, ETS, Market design, Heating and cooling strategy. All of them, key and suitable for HE CHP.

We have got the tools. Let’s use them

cogeneurope.eu

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

info@cogeneurope.eu • www.cogeneurope.eu