Prof. dr. Marija Todorovic Prof. dr. Marija Todorovic

DERES - DIVISION FOR ENERGY EFFICIENCY AND RENEWABLE ENERGY SOURCES

Faculty of Agriculture, University of Belgrade, Serbia

deresmt@EUnet.yu, deres@agrifaculty.bg.ac.yuderesmt@EUnet.yu, deres@agrifaculty.bg.ac.yuwww.rcub.bg.ac.yu/dereswww.rcub.bg.ac.yu/deres

2006 62006 6thth November November

E N E R G Y S U P P L Y

MICRO AND DISTRIBUTED GENERATIONMICRO AND DISTRIBUTED GENERATIONAND TRIGENERATION IIAND TRIGENERATION II

LONG HISTORY OF COGENERATION IN THE WORLD PAYS OFFLONG HISTORY OF COGENERATION IN THE WORLD PAYS OFF

AIM OF THIS LECTURE

Its aim is to provide an understanding of how

social, political, economical, geographycal and climatic conditions as well as regional resources,

living style, science and awarness on environmental issues influence CHP,

micro and distributed generation and trigeneration

technologies development

PRESENTATION OUTLINE

History

Eastern and Western Europe

Pay-off and Near Future Prospects

Monetary and EcologicallySecurity of energy supply and general socialResources conservation by the energy efficiency improvement and RES utilisation People health and living Contributes to approach sustainability

Ethics of Sustainability

COGENERATION ASPECTS OFCOGENERATION ASPECTS OFPolicy

Local heating/cooling supply policy

Benefits for the consumers

Use of local fuels

Economical benefits

Labor cost

Productivity International energy and environmental policy

National energy

Working hours

High technology – Development of new products

100 YEARS HYSTORY OF COGENERATION AND 100 YEARS HYSTORY OF COGENERATION AND DISTRICT HEATING IN EUROPEDISTRICT HEATING IN EUROPE

The year 1903 is the birth of DH and CHP year in Russia, when based on prof. Dimitriev and engineer Ginter design constructed Heating System for the Prince Oldenbourg’s children hospital had been connected to the two steam turbines at the local Electricity Station.

The other - after revolution place “birth” of CHP /District Heating is Saint Peterbourg 1924 when the first vapour pipeline was opened of the state electrical power plant towards Building 95 near river Fontanka.

STAGES OF ENERGY/URBAN DEVELOPMENT STAGES OF ENERGY/URBAN DEVELOPMENT WERE CHARACTERIZED AS FOLLOWSWERE CHARACTERIZED AS FOLLOWS:

• 1903-1917 Study and development of different schemes of DH heating systems

• 1924-1931 Construction of larger DH systems for heating buildings and industrial

facilities/plants • 1931-1950 Construction of CHP plants in big

industrial centers• 1950-1975 Very intensive development of

construction industry and spreading of DH systems in cities and industrial centers

• 1975-1990 Decreasing construction of CHP systems

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80

120

160

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360

1930 1940 1950 1960 1970 1980 1990

10 9 kWh/year

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2

1 - TOTAL; 2 - ELECTRICAL MAIN UTILITIES

PRODUCED ELECTRICAL ENERGY PER YEAR PRODUCED ELECTRICAL ENERGY PER YEAR BY THE CHP SYSTEMS IN FSUBY THE CHP SYSTEMS IN FSU

2000 2000 Forming a new conception of DH Forming a new conception of DH and CHP developmentand CHP development changing orientation from the dominant role of central DH/CHPcentral DH/CHP systems to the systems to the combination of central powerful and small combination of central powerful and small systemssystems..Study on the CHP based on Nuclear energy had been stopped after Chernobyl accident.Recently has been initiated continuation on the study of the “inherently safe” nuclear CHP systems for the DH of power 300 MW.

THE WORLD ENERGY CRISIS 1973 ROLETHE WORLD ENERGY CRISIS 1973 ROLE

The world energy crisis 1973 stopped many western countries in their “chaotic” development of energetique, which lead them to numerous homes with autonomous boilers fueled with oil to supply heat or heated using electrical energy.

Based on mainly the Eastern European experience they began conversion to wider utilization of DH and central CHP systems – using locally available energy resources proceeding with adequate state regulative and laws.

LARGEST DH/CHP SYSTEMS IN THE WORLDLARGEST DH/CHP SYSTEMS IN THE WORLD City PJ GWh Heat/Year St.Petersburg 237 66,000 Moscow 150 42,000Prague 54 15,000 Warsaw 38.2 10,600 Bucharest 36.7 10,197 Seoul 36 10,000 Berlin 33 9,247Copenhagen 30 8,000 New York City, Stockholm, Helsinki, Hamburg, Paris, Göteborg, Reykjavík, Krakow, Katowice, Gdansk, Tampere, Finland, Indianapolis, Gdynia, Philadelphia, Detroit

New Development - Business center of 105.000 m2.CHP - 4 engines of 1,4 MW = 5,6 MW Electrical power

and total 6,8 MW Thermal power 3 Gas boilers of 9 MW - total 27 MW3 Absorption cooling units of 0,67 MW = 2,0 MW

Mostransgaz Mostransgaz Business Business Center Center MoscowMoscow

Godišnji toplotni konzum

MOSTRANSGAZ BCenter HEATING ENERGY USEMOSTRANSGAZ BCenter HEATING ENERGY USE

MOSTRANSGAZ BCenter GAS USEMOSTRANSGAZ BCenter GAS USE

ELECTRICAL ENERGY PRICES AND RATIO BETWEEN GRID AND CHP ELECTRICITY

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odno

s ce

na e

l. en

rgije

iz d

istr

ubut

ivne

mre

že i

iz g

asno

g m

otor

-gen

erat

ora

Cene struje iz distributivne mreže

Cena struje iz gasnog motor-generatora

Cena gasa svedenog ma kWh

Odnos cena

[¢/kWh]

1903

Frederiksbourg

SUPPLY SUBSIDY AND DEVELOPMENT OF SUPPLY SUBSIDY AND DEVELOPMENT OF ENVIRONMENTALLY FRIENDLY FUELSENVIRONMENTALLY FRIENDLY FUELS

1950 and 1960 DH supply extended to most of the country's large cities. Oil crises in 1973-74 formulation of the energy policy to reduce the approx. 100% dependency on oil. Energy Research Programme (ERP) in 1976 support energy R&D in EnEff. and decrease the environmental impact of energy production.The law on heat supply took effect in 1979 - 50% of about 700,000 existing DH systems targeted use CHP heat, biomass and DE systems, developing North Sea gas distribution system and preaparing for the CHP.In 1981, the Development Programme for Renewable Energy (DPRE) supplemented RES.

CONVERSION TOWARDS CHP - POLITICAL WILL CONVERSION TOWARDS CHP - POLITICAL WILL & ETICS& ETICS

• The 1986 Agreement on CHP became a major energy policy priority based on the technology of matured small CHP installations driven by natural gas, the political focus on the economic consequences of high energy prices, there was a need for new power capacity.

• The amendment to the law on heat supply in 1990, a new planning system – “project system” was developed - promoting expansion of decentralized CHP through:

- conversion of existing installations to CHP - conversion from coal and oil to natural gas- increased use of environmentally friendly RES.

After more than 20 years of such support, many environmentally friendly technologies and fuel installations became so technologically and commercially mature that they no longer required subsidizing and in 2002 the Finance Act discontinued the DPRE's subsidy system.

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1980 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02

PJ

Large-Scale CHP Units Small-Scale CHP Units

Autoproducers, Heat only Autoproducers, CHP

District Heating Units

DISTRICT HEATING PRODUCTION BY TYPE OF DISTRICT HEATING PRODUCTION BY TYPE OF PRODUCER (DK)PRODUCER (DK)

FINLANDFINLAND

Though over 30% of the electricity generated is CHP-based, it is not the consequence of specific political action, exept governmental support for CHP within well-funded research programme. The reason is more due to an absence of barriers; the fact that CHP is recognised as being the most economic means of generating electricity; that there is a greater acceptance of longer payback periods and; finally, that heating demand is high. One has to keep in mind that almost all CHP is in industry or District Heating.Plentiful availability of wood biomass and extensive use of peat as energy sources.

Wood fuel consumption in production of district heat and combined production of district heat and electricity in Finland

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1982 1984 1986 1988 1990 1992 1994 1996 1998

GWh

FINLANDFINLAND

EU & GLOBAL BENEFITS OF COGENERATIONEU & GLOBAL BENEFITS OF COGENERATIONIncreased efficiency of energy conversion and useMore decentralised form of electricity generationImproved local and general security of supplyMore employment - EU formulated in 1997 a strategy to promote CHP with a target of doubling the use of co-generation to 18% of EU electricity production by 2010, avoiding CO2 emissions of more than 65 Mt CO2 per year.Kyoto single biggest challengeCogeneration is one of the most cost effective solutions in DE generation and one of the major solutions to the undeveloped countries electrification Short term, medium and long term vision

and interests affecting the market

0 10 20 30 40 50 60

Belgium

Denmark

Germany

Greece

Spain

France

Ireland

Italy

Luxembourg

Netherlands

Austria

Portugal

Finland

Sweden

UK

EU-15

Sources: Eurostat, COGEN Europe, Cogena

Current EU CHP SituationCurrent EU CHP Situation Percentage of total electricity generation in 1999

7893

12170

28152

2251

10600

4476

Austria

Finland

Germany

Italy

Netherlands

Sweden

CHP electricity production 1999

CHP electricity production CHP electricity production variationvariation

1994-1997 1997-1999Austria 43,6 -15,8Finland 16,4 6,7Germany 23,9 6,6Italy -2,42 24,0Netherlands -34,9 2,9Sweden -1,74 0,5 Total 5,5 2,8

Climate Climate changechange

…cause weather extremes and damages worth billions of Euros.

Source: Münchener Rückversicherungsgesellschaft

CLIMATE CHANGE AFFECTING CLIMATE CHANGE AFFECTING SOUTHERN EUROPESOUTHERN EUROPE

The balance of impacts of climate change will be more negative in southern than in northern Europe - warming of climate is greatest over southern Europe (Spain, Italy, Greece,...)Severe implications for forest fire occurrence and for human health…, risk of water shortage is projected to increase…In coastal areas the risk of flooding, erosion and wetland loss will increase substantially with implications for human settlement, industry, tourism, agriculture and coastal natural habitats,...

Also the German, Finnish, Danish, Irish and Dutch parliaments

Trigeneration at the heart of Europe – Berlaymont

EU SEARCHING INSTRUMENTSEU SEARCHING INSTRUMENTS

• Deregulation, Re-regulation, Liberalisation and Privatisation

• Deregulation leads to chaos!• All markets need regulation so re-regulation

is necessary, from state owned to new structures

• Privatisation is the ultimate result of liberalisation as state owned companies will struggle in a truly open market

• Liberalisation is just a process and needs to be framed correctly

Liberalisation

Allows new entrants, greater transparency, less discrimination on top-up and emergency supplies

Uncertainties remain

Must be correctly regulated and framed

Directive on CHP = progress but compromises...

Globally positive, in particular for DH and CHP

Needed coordinated policies at the EU and Member State level. Action Plan is essential and urgent at the EU level and National Plans and Strategies need to be developed.

8%10%12%14%16%18%20%22%24%26%28%30%

1995 2000 2005 2010 2015 2020

CHP, share underongoing EU policyTarget according toCHP strategyCOGEN Europe'sAimWorst Case Scenario

Source: Primes, (Autumn 1999): CHP electricity production, share of total generation

CHP - Energy Outlook to 2020

GENERAL INFORMATION

Directive draft proposal by the Commission to the Council of EU and to the European Parliament (29th of July 2002)Draft proposal consists of:Explanatory Memorandum (30 pages)Main body of the Directive (18 article and four Annexes)

PURPOSEPURPOSE

The purpose of this Directive is to increase

energy efficiency and improve security of supply

by creating a framework for promotionpromotion and

developmentdevelopment of high efficiency cogeneration of

heat and power based on useful heat demand

and primary energy savings in the internal energy

market, taking into account the specific national

circumstances especially concerning climatic and

economic conditions.

ANNEXES

Electricity grid system and tariff issues

Guarantee of origin of electricity from high efficiency cogeneration

Cogeneration technologies covered by the Directive Definition of electricity

from cogeneration Criteria for analysis of national potentials for high-efficiency cogeneration

RECENT DEVELOPMENTThe Directive published in the OJ of EU in 11/2/04The MS have two years to implement the Directive into

their legal framework

A ‘Comitology’, under the supervision of Commission, is working to propose ‘reference values for separate heat and power production’. End of the work: February 2006

The Greek Ministry for Development set up a committee to implement the Directive in the Greek energy legal system. End of the Committee: March 2006

EU Cogen Conclusions

CHP is the perfect tool for clean decentralised energy servicesSingle largest contributor to cutting CO2

Costs are neutral as wellUncertainties in EU remain but, if set in the right framework, liberalisation will have a positive impactMarket potential is huge>30% of electricity supply is ecomonic today

HYATT REGENCY AND INTERCONTINETAL HOTELBELGRADE

A guarantee of electricity from high efficiency cogeneration origin shall:

specify the lower calorific value of the fuel source from which the electricity was produced, specify the use of the heat generated together with the electricity and finally specify the dates and places of production.specify the quantity of electricity from high efficiency cogeneration that the guarantee represents.specify the primary energy savings calculated based on harmonised reference values established by the Commission.

Ann. I: Cogeneration technologies covered by the Directive

A. Combined cycle gas turbine with heat recovery B. Steam backpressure turbine C. Steam condensing extraction turbine D. Gas turbine with heat recovery E. Internal combustion engine F. Micro turbines G. Stirling engines H. Fuel cells I. Steam engines J. Organic Ranking cycles • Any other type of technology or combination

thereof falling under the def. in Article 3 a.

ANNEX IV: CRTERIA FOR ANALYSIS OF NATIONAL POTENTIALS FOR HIGH-EFFICIENCY COGENERATION

The analysis of national potentials shall consider

The type of fuels

The type of cogeneration technologies

The type of separate production of heat and

electricity

A division of the potential into modernisation

of existing capacity and construction of new

capacity.

Cogeneration Project Development GuideDeveloping and Implementing Biomass, Clean Coal and Natural Gas Cogeneration Projects in

ASEAN

GEOTHERMAL ENERGY

BIOMASS ENERGY

LANDFIELD GAS ANDLANDFIELD GAS ANDWASTES UTILIZATIONWASTES UTILIZATION

Miniaturization - Micro Miniaturization - Micro CAT systemsCAT systems

Distributed energy systemsDistributed energy systems for intelligent buildingsfor intelligent buildings

SOLAR ENERGY

INEXTRICABLE LINKAGEINEXTRICABLE LINKAGE

1. RES, REM, EnEfficiency and Sustainable Development

2. All level regular and vacational Education, Engineering Experience (Designing, Construction, LCCommisioning and Operation)

3. Most current knowledge and technologies and Mental awarness/Ethics of Sustainability

4. Cost effectiveness/harmonization of

- Dynamics of final energy user’s loads

- Dynamics of Co/Trigeneration efficiency

- Dynamics of technically available RES fluxes

5. Small specific energy fluxes and Distributed character of RES versus Distributed Co/Trigeneration

INSTEAD OF CONCLUSIONSINSTEAD OF CONCLUSIONS

• Internalisation of a Environmental and Sustainability Costs and benefit values.

• Taking the environmental benefits into consideration and linking the environmental goals to those of implementing a competitive and efficient market would guide decision making towards sustainability.

• Fundamental difference between decisions and approaches grounded in discretionary pursuit of self-interest, and those based on commitment to sustainability intrinsic standards.

• Sustainability ethically sanctioned approaches, at each level and in each domain, can help to properly govern the complex nature content of the challenges sustainability is faced with.