CODE2 Cogeneration Observatory and Dissemination Europe

IEE/11/910/S12.615940

Final Dissemination Seminar

11 December 2014

IEE/11/910/SI2.615940 01/07/2012 to 31/12/2014

CODE 2 Project

Duration :2012-2014 Partners :9

Regional Leaders : Italy, Flanders Slovenia, Germany, Greece

Primary Deliverable :2030 CHP Roadmap for each

Member State

CODE2 project partners

– HACHP, the Hellenic Association for Cogeneration of Heat & Power (Greece)

– Jožef Stefan Institute (Slovenia)

– FAST, Federazione delle Associazioni Scientifiche e Techniche (Italy)

– COGEN Vlaanderen (Belgium)

– Energy Matters (Netherlands)

– Berlin Energy Agency (Germany)

– KWK kommt (Germany)

– COGEN Europe (Belgium) :Project leader

Major outputs and expected results

• Develop the first clear plan of action for cogeneration in each EU Member State

• Gather experts and establish information networks around cogeneration

• Review published data and present conclusions

• Introduce in detail the new EED

• Assess the EED’s impact with national stakeholders

• Do the first specifically micro-CHP and bio-energy CHP analysis

Structure of the project work

Pilots: Flanders, Italy, Greece, Germany Poland

, Slovenia, Ireland

How-to Guides for : Hospitals, hotels, food and commercial

sectors

Site visits and workshops in Pilot

countries

European CHP Roadmap and Policy Roadmap for CHP

20 non-Pilot roadmaps

Main deliverables in the CODE2 project

July 2012

Mar.2014

July 2013

June2013

Nov.2014

April2014

June2014

Sept2014

Dec.2014

2014 2013 2012

COGENERATION ROADMAPS WP2,WP5

Cogeneration: Roadmaps for Europe

Best practise exchanges

Develop solutions to meet emerging challenges

Complete barrier removal Provide effective Member State support

Strengthen industry communication

Increase awareness in all target sectors

Industry

Policy

Awareness

122

GWe

Cogeneration: Roadmaps for Europe

Best practise exchanges

Develop solutions to meet emerging challenges

Complete barrier removal Provide effective Member State support

Strengthen industry communication

Increase awareness in all target sectors

Industry

Policy

Awareness

122

GWe

Technology and micro /bio assessments Site visits

Barrier identification EED policy linkages National Assessments of barriers

Seven national workshops , 27 expert groups Direct contact to policy makers , outreach and dissemination

WP2 – National Cogeneration Roadmaps for Member States

Tasks 1. Develop the basic structure of the Nat Cogeneration Roadmap and dialogue with national

experts List of national experts built Creation of the Roadmap outline Develop roadmap outlines for all MS

2. Analysis of the level of awareness in best practise examples of CHP growth Develop for each region a case study on awareness of CHP Additionally the CODE2 team compared the 5 approaches and developed a

European overview of awareness comparison with conclusions and recommendations.

3. Complete the potentials for Bio-energy CHP and micro CHP in the existing 27 national potential assessments

4. Develop the proposals for each of the 7 pilot MS according to the basic structure.

5. Develop National Cogeneration Roadmaps for all 27 MS Detailed for the 7 pilot MS Outline for the 20 other MS

WP2 – National Cogeneration Roadmaps for Member States

Developed final (2012-2030) roadmaps period 2013-2014 for: 7 pilot MS (Germany, Italy, Greece, Ireland, Poland, Belgium and Slovenia)

20 non-pilot MS

Dates (2013) Pilot country Regional Leader Participants CHP Site visit Event report

1 6 June Ireland CVL 41 Yes available

2 9 September Germany KK 30 Yes available

3 10 October Greece HACHP 45 Yes available

4 22 October Italy FAST 26 Yes available

5 26 November Slovenia JSI 30 Yes available

6 4 December Poland JSI 21 No available

7 12 December Belgium CVL 40 Yes available

CHP Roadmaps

• Chapter 1 :Where are we now?

– Overview of CHP

• Energy /Climate/ policy

• Economics

• Awareness

• Barriers

• Chapter 2 : What is possible?

– Potentials and market opportunities

– Policy framework and EED impact

• Chapter 3 : How do we arrive there?

– Overcoming the Barriers

– Which markets and what changes

13

• Awareness

Italy

Slovenia Netherlands

Greece

Customers

Industry Commercial Households

Utilities

Market

InstallersManu-facturers

Gridoperators

Consultants BanksArchitects

ESCOs

Influencers

NGOs

Generalpublic

SpecialistMedia

Academia Research

Sectororganisation

Policy

Energyagencies

LocalPlanners

Federal Regional Local

Engineeringcompanies

3

Customers

Industry Commercial Households

Utilities

Market

InstallersManu-facturers

Gridoperators

Consultants BanksArchitects

ESCOs

Influencers

NGOs

Generalpublic

SpecialistMedia

Academia Research

Sectororganisation

Policy

Energyagencies

RegionalPlanners

Federal Regional Local

Engineeringcompanies

Poland

CHP Awareness assessment

Belgium

Germany

CHP Awareness in different socioeconomic groups

Complete barrier removal Provide effective Member State support

Policy

Barriers • Lack of policy that enables the economic case for

CHP

• Current high regulatory and policy risks( especially in electricity sector)

• Non Economic Barriers (continue!)

– Distributed generation

– Bureaucracy

• Heat demand and how it will change is poorly understood.

• Secure role of renewable fuels

Germany economics of CHP

The market economic case for CHP varies considerably across size of plant, member states and application. Fixing the economic case through a combination of policy and market

actions is vital. The EED has a front line enabling role.

Germany

www.cogeneurope.eu

Ireland

Considerably different economics in different member states

.

CODE 2 European Roadmap

How to approach sectors for growth?

• SMEs and CHP : Stand alone CHP around 1MW or less.

• Stand Alone CHP : universities, hospitals , government buildings encouraged under EPBD and EED

• Micro CHP : Important for existing built environment. Reaching maturity, product cost is high need help to get to volume cost base.

• District Heating : refurbish and upgrade (minimise regulatory risk and stabilise policy to lower cost of investment)

• Large Industrial : link industrial and energy policy around EE in industry and wider use of CHP.Encourage refurbishment and upgrade. Encourage participation in electricity markets .

Main Messages CODE 2

24

Considerable energy savings potential of around 800 Twh and 300 Mton of CO2 savings from CHP in 2030.

Regulatory and electricity market uncertainties pose the greatest near term obstacle to growing CHP in the

period to 2020.

The market economic case for CHP varies considerably across size of plant, member states and application. Fixing the economic case through a combination of policy

and market actions is vital. The EED has a front line enabling role.

The market entry barriers which have been highlighted for 10 years and more have not been overcome despite the

relevant EU legislation.

< 5% 5-10% 10-20% 20-30% >30%

2008 2008 plus 1000 TWh heat with 122 GWe

Delivered Electircity 2008 and MS projections to 2020

< 5% 5-10% 10-20% 20-30% >30%

2013 2020 plus 1000 TWh heat with 122 GWe

CODE 2 projections( 2030) and MS projections (2020)

Considerable energy savings potential of around 800 Twh and 300 Mton of CO2 savings from CHP in 2030.

CHP Support schemes (IA) of EED

The market economic case for CHP varies considerably across size of plant, member states and application. Fixing the economic case through a combination of policy

and market actions is vital. The EED has a front line enabling role.

The market entry barriers

which have been

highlighted for 10 years and more have not

been overcome

despite the relevant EU legislation.

Regulatory and electricity market

uncertainties pose the greatest

near term obstacle to

growing CHP in the period to

2020.

To move CHP forward

• Policy must address the need for CHP to be economic in target sectors it wishes to address ( market or support..serious application of heating assessment EED)

• EU and member states must reduce regulatory and policy risk (electricity market?)

• Non Economic Barriers to DG and CHP must be removed – Distributed generation (DG) :network codes and Balancing. – Bureaucracy around connection and operation (Regulators?)

• Continue to improve policy makers understanding of heat demand and how it will change to 2030.

• Encourage the shift to renewable, and diversified fuels in modern flexible CHP.

Outreach

Cogeneration: Roadmaps for Europe

Best practise exchanges

Develop solutions to meet emerging challenges

Complete barrier removal Provide effective Member State support

Strengthen industry communication

Increase awareness in all target sectors

Industry

Policy

Awareness

122

GWe

Technology and micro /bio assessments Site visits

Barrier identification EED policy linkages National Assessments of barriers

Seven national workshops , 27 expert groups Direct contact to policy makers , outreach and dissemination

Best practise exchanges

Develop solutions to meet emerging challenges

Industry

Strengthen industry communication

Increase awareness in all target sectors

Awareness

WP3 – How to guides

• Objectives: To expand the penetration of cogeneration in Europe Focused on food, paper, hospitals and commercial premises

• Tasks: 1. Checklist for the how-to guides 2. Develop the how to guides

Additionally a Smart CHP tool produced to make a fast prefeasibility check for small scale CHP units applications in industry, services and households

Distribution to the industry associations in question

3. A reference source of best practice cases 33 cases available on the project website

4. Translation and adaptation Guides have been translated to 12 languages (2 other languages pending but

ready on coming 2 weeks)

How-to Guides • To be used by business, local

authorities and other professional groups interested in expanding CHP penetration

• Developed together with 30 best practice cases on target groups: hospitals, food, paper and commercial premises.

• Translated and adapted to 13 other MS national languages

• Disseminated among national CHP associations, UAPME and other Brussels based European Industry associations from the targeted sectors

SmartCHP tool

• Enables fast prefeasibility check for small scale CHP units (CHP-range: 1kWe – 5MWe) applications in industry, services and households.

• Economic evaluation on the CHP project level enables fast analysis of the key project variables on the profitability of the CHP application.

• Available in English, Dutch, Slovenian and Spanish

37

Case Studies: Success factors, main barriers and recommendations….

30 case studies across the regions applications and focused on the target markets

Context for EED comprehensive assessment.

Energy Efficiency Directive Annexe VIII e) :Identification of the potential for additional high efficiency co-generation

• Website with all information form the project: – How to guides & SmartCHP tool

– National Roadmaps

– Cases Studies

– Awareness reports

– Micro CHP & Bio-energy Roadmaps

• Press Releases highlighting the major outcomes from the project like workshops, issue of how-to guides, etc.

• Combined action to launch the 27 National Cogeneration Roadmaps on the MS

Communication

• Collaboration with Cogeneration Channel: The CODE2 project and the German Roadmap

• Articles about the project issued in the press of different MS

• Very good feedback from several MS:

Workshops in Pilot Member States

• National policy makers interested to take part and to know more on position in other member states.

• EED 2013-2014 – CODE 2 made links with CHP to all of Articles

3,7,14,15, 19 ( more?) – Emphasis in all member states feedback on the

challenge to get the economics right. – CODE 2 emphasis on the need to maintain PES as the

leading measure – Member states challenged by the comprehensive

assessment and the CBAs

• ENDS