OPET CHP/ DH Cluster WP 2: Small and Micro-Scale CHP

Micro and Small Scale CHP Uptake of an innovative technology? OPET CHP/ DH WP 2 Project Results

Introduction Within in the OPET CHP/DH project, Workpackage 2 has focussed on encouraging the adoptation of micro- and small-scale CHP (M/SSCHP) technologies. In most of the countries represented in this work package - Austria, Belgium (Flanders region), Bulgaria, Estonia, Germany, Greece, Latvia, Lithuania, Poland, Slovakia, Slovenia and Spain - large-scale CHP for district heating has a long – often more than 50 year old – tradition. Small-scale cogeneration units have, however, not been used in most of these countries before the early 1990s. In Bulgaria, Estonia, Greece, Latvia, Lithuania, Poland, Slovakia and Slovenia the total capacity of plants of 1 MWe or less, does presently not succeed 11 MW. In order to promote M/SSCHP, the fourteen partners of this OPET CHP/DH cluster workpackage have focussed above all on two objectives: 1) The compilation and exchange of information on the status quo of and the framework conditions for the use of M/SSCHP 2) The support of the development of M/SSCHP projects by disseminating information on M/SSCHP

Table 1: Partners of OPET CHP/ DH Cluster, WP 2: Micro- and Small-Scale CHP

Opet Partner No. 2 3 4 5 6 7 10 12 14 17 19 20 21 22 23 26

Short Name

Name Berliner Energieagentur Technical Research Centre of Finland Estonian Energy Research Institute at Tallinn Technical University Ekodoma Lithuanian Energy Institute Krajowa Agencja Poszanowania Energii Energy Centre Bratislava Sofia Energy Centre Energieverwertungsagentur Ente Vasco de la Energía The European Association for the Promotion of Cogeneration - COGEN Europe Institut "Jozef Stefan" LDK Consultants Engineers and Planners Vlaamse Thermie Coordinatie Baltycka Agencja Poszanowania Energii Österreichischer Energiekonsumenten Verband

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Country

BE VTT

Germany Finland

EERI-TUT Ekodoma LEI KAPE ECB SEC E.V.A. EVE

Estonia Latvia Lithuania Poland Slovakia Bulgaria Austria Spain

COGEN IJS LDK VTC BAPE

Slovenia Greece Belgium Poland

ÖEKV

Austria

1) Compilation and Exchange of Information The partners BE, EERI-TUT, Ekodoma, LEI, KAPE, ECB, SEC, E.V.A., EVE, IJS, LDK, VTC, BAPE and ÖEKV have reviewed the M/SSCHP environment in their respective countries. In order to collect information in addition to their current knowlege on M/SSCHP, the partners have screened existing relevant documents and contacted different sources of information such as research institutes, associations, energy regulatory authorities, equipment suppliers, ministries and financing institutions. Issues addressed include M/SSCHP related policies, the availability of M/SSCHP technology, promising application fields and existing best practice examples. The partners have gathered the relevant information in country reports and in best practice descriptions which show examples of successful existing applications. An overview of these information has been provided in form of a cross national report . The compiled information shows that in most countries there are only very few smallscale and hardly any micro-scale CHP plants. The review of the CHP-related policies shows that in some countries political targets concerning CHP in general are formulated, but M/SSCHP in particular is hardly ever mentioned. In most countries the grid operator is obliged to purchase and pay a feed-in bonus for cogenerated electricity. In some countries additional supporting schemes such as tax exemptions on fuels for CHP plants and certificate trading schemes exist. Furthermore, most countries also have financial support schemes – in form of grants or soft loans – to alleviate the investment cost burden for CHP installations. Nevertheless, only very few of the policy and financial supporting mechanisms target M/SSCHP in particular and thus consider the higher investment costs for M/SSCHP units. One of the few exceptions are differentiated feed-in tariff systems that provide producers with smaller plants a higher remuneration per kWh. Conventional technology equipment for small- and mostly also micro-scale CHP is available in the countries represented in the project, but other barriers hinder wider deployment of M/SSCHP. Long-and cost-intensive authorisation procedures, for example, a lack of knowledge on the side of possible investors about technology options, promotional legislation and financial support schemes, often hinder M/SSCHP applicatinos. Overcapacity, low electricy production prices by amortized conventional big power plants and a decreasing heat demand due to better insulation of buildings create a challenging environment for M/SSCHP. Liberalisation has led to increasing gas prices and decreasing electricity prices. The unfavourable fuel/ electricity price ratio with further price developments remaining uncertain hinders investment in M/SSCHP plants. Furthermore, the availability of natural gas – the most common fuel - is not guranteed in some of the regions.

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With the best practice descriptions, the partners have provided examples of typical application fields for M/SSCHP, such as: • • • • • • • • •

Hotels Hospitals Commercial and office buildings Residential buildings Industry Landfill Sites Agriculture Greenhouses District Heating

Table 2: Best Practice Descriptions provided by the Partners of WP 2

OPET Partner

Best Practice

Fuel cells in family houses in Brake and Oldenburg - virtual power plant Stirling motor at utilities of the City of Kiel SSCHP in service complex “Königstadt-Terrassen” - Contracting Model for Commercial and Office Buildings in Berlin EERI-TUT, Estonia SSCHP at Landfill Site in Pääsküla

BE, Germany

Ekodoma, Latvia

LEI, Lithuania KAPE and BAPE, Poland

ECB, Slovakia

SEC, Bulgaria

EVA and ÖEKV, Austria EVE, Spain

IJS Slovenia

LDK, Greece VTC, Belgium

SSCHP in DH system in Adazi SSCHP in DH system in Lielvarde SSCHP in greenhouses in Carnikava SSCHP in DH system in Ozolnieki SSCHP demonstration biogas plant in Rokai pig farm SSCHP in Palanga rehabilitation hospital SSCHP in residential sector in Hel SSCHP in DH in Gdansk-Matarnia MSCHP in a hospital in Kartuzy Biomass-fired SSCHP in DH in Ilawa SSCHP in Hotel Európa in Komárno SSCHP in DH in Dolný Kubín SSCHP/ trigeneration reference project in headquarters of Slovak Gas industry SSCHP unit in DH Company of Pravets SSCHP in Textile/ Knitware Industry in Vratsa SSCHP in Hotel Bankya in Bankya SSCHP in Hotel Almesberger in Aigen SSCHP in Hotel Matschner in Ramsau SSCHP in the Zumaia Sports Centre SSCHP in a furniture factory in Azpeitia SSCHP in San Eloy Hospital in Barakaldo MSCHP biogas plant in Letuš SSCHP purifying plant in Nemščak SSCHP in sport equipment manufactory in Begunje SSCHP/ trigeneration TUŠ Celje SSCHP in food-processing industry in Ljubljana SSCHP in health resort in Laško SSCHP Plant in N. Liosia Lanfill Site of Athens SSCHP Plant in Tagarades Lanfill Site SSCHP in tomato production MSCHP in social housing sector in Herenthout

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2) Support of the Development of M/SSCHP Projects Apart from the often not very favorable frame conditions for M/SSCHP, the lack of information and lobbying presents a barrier to M/SSCHP uptake. With over twenty events organised in the respective countries, the partners have reached more than 1000 participants. The events have addressed a wide range of target groups such as: equipment suppliers researchers utilities SMEs industry building owner associations energy specialists of companies municipal governments project developers students political decision makers consultants bankers Political framework conditions in liberalised markets have been presented and discussed at some of the events with political decision-makers and different market actors. Other seminars focussed on practical experiences including presentations of best practice projects design, operation and project financing. In some countries, especially in those where the market for conventional M/SSCHP technology is quite developed, the events where dedicated to microturbines and fuel cells. The discussions at the events have shown the need for the information provided through this project, and the potential for further activities and exchange between market actors. Some partners have also been contacted and provided practical assistance to potential clients such as hospitals and district heating companies. Having provided more than fifty publications - articles in newspapers, professional magazines and on websites as well as papers and presentations to regional, national and international events - the partners reached both, professional experts as well as the general public. The events and publications evoked increased interest for conventional and innovative M/SSCHP solutions and provided practical information for project development. The discussion of the political frame conditions showed a need for a coherent policy frame work, targeting M/SSCHP in particular as an essential step towards further M/SSCHP deployment.

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Table 3: Events organised by the Partners of WP 2

OPET Partner

Title of the Event

September 9, 2003

Berlin

Number of Participants 30

May 19, 2004

Berlin

31

June 18, 2003

Talinn

25

October 22, 2003 November 12, 2003

Paide Paide

13 14

November 19, 2003

Paide

15

February 12, 2004

Tallinn

23

March 9, 2004

Tallinn

May 22, 2003

Riga

12

March 24, 2004

Riga

38

March 16, 2004

Warsaw

Date

“Chances for Small and Micro Scale Cogeneration in liberalised European Energy Markets” „Fuel cells and mico-turbines – innovative technologies for CHP use in future” EERI-TUT, “National Strategy for Promoting of CHP in Estonia” Estonia “Energy policy and legislation” “Planning and Management in DH/CHP Systems” “Technical Management of DH/CHP Systems” ”CHP Technologies – Current Situation and Future Perspectives” “DH and CHP. Technologies, project management, financing.” Ekodoma, “Small and Micro Scale CHP and Energy Efficiency” Latvia ”Cogeneration day: SSCHP in liberalised market and new technologies” KAPE ”CHP market with the prospect of implementation EU CHP Directive ” “Seminar on successful implemented ECB, project of SSCHP, Bánovce nad Slovakia Bebravou” “Possibilities of small CHP units in municipalities, practical training & study tour” “Fuel cells utilisation in combination with biogas” ”Implementation of Energy directives EC to Slovak legislation “ EVA and “Cogeneration Symposium – Micro and ÖEKV, Mini CHP units in a liberalized market” Austria EVE, Spain “New legal framework for the Special Regime (RD 436/2004)” IJS “Small and Micro Scale CHP” Slovenia LDK, “Cogeneration in Greece: barriers and Greece prospects in view of the new EU directive” “Fuel Cells” VTC, Belgium "Infosession on microturbines in the food processing sector” “Microturbines in Flanders” BAPE “New Investment for Cogeneration in Pomeranian Region” BE, Germany

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Location

October 15, 2003

Bánovce nad Bebravou November 10-11, 2003 Prague

110 106

60

March 1, 2004

Bratislava

19

May 4, 2004

Bratislava

63

October 6-7, 2003

Vienna

27

June 9, 2004

180

April 22, 2004

Zamudio/ Bilbao Lubljana

November 20, 2003

Piraeus

103

April 29, 2003 June 30, 2003

Mol Gent

100 25

October 1, 2003 December 15, 2003

Mol Gdansk

26

68 42

Conclusion The fact that M/SSCHP is not even mentioned in the many of the countries’ energy policies and that only few M/SSCHP installations have been implemented so far in most countries shows the urgent necessity of further information dissemination on the political level as well as among the market actors involved in project implementation. The activities perfomed within the OPET CHP/DH WP 2 have been a valuable contribution to this task.

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