COGEN Europe warns that current problems facing the CHP sector demand firm implementation of the Energy Efficiency Directive by Member States

Date

03 Apr 2013

Sections

Energy
EU Priorities 2020

Press release

A new snapshot survey of cogeneration shows a growth in the smaller CHP installations in many EU Member States but also reveals the degree to which the sector is under pressure from the combined effect of the economic crisis, electricity market issues, and on-going fuel price fluctuations. Dr Fiona Riddoch, Managing Director of COGEN Europe, commented ahead of publication that “the outlook for CHP is very Member State specific. There has been a growth in the number of small installations over the past 5 years but the current combination of market conditions is hitting CHP particularly hard across all sectors”.
 
Today 12% of Europe’s electricity and 15% of its heat are supplied in cogeneration mode, providing a minimum of 35 Mtoe of energy savings to Europe annually[1].The current economic slowdown reducing electricity demand, combined with global fuel price fluctuations and the ongoing lack of consideration for the heat output of cogenerators in their electricity market participation, have drawn highly efficient gas-fired CHP plants to experience serious cuts in profitability at many periods of the day. The cogenerator has to follow both the heat customer and the electricity customer, giving them a different business model to traditional electricity only suppliers.
 
The survey also sheds light on some positive market developments in countries where decentralised production of energy, local use of bio-energy and self-consumption of electricity are promoted.
 
Member States are currently implementing the new Energy Efficiency Directive (EED), which requires more openness and an improved status for cogenerators in the electricity sector. It also makes provisions for new service markets within the electricity market where CHP can compete well. Dr. Csaba Kiss, Head of COGEN Hungary, who will present findings of the survey, commented that “post-crisis Europe will need the cogeneration’s energy efficiency contributions for productivity, energy savings and growth. Member States must implement the EED ambitiously. Post economic downturn, the predictability, reliability and efficiency of CHP make it an important part of the new energy networks”.
 
The 2013 Snapshot Survey of the Cogeneration sector in Europe[2] will be presented at the 20th COGEN Europe Annual Conference & Dinner, the largest CHP conference in Europe to take place in Brussels on 18 and 19 April.
 
[1] Compared to the alternative separate production of heat and electricity.
[2] The 2013 snapshot surveyed CHP experts from 15 countries covering 70 % of the CHP market. In addition to the 2013 survey snapshot, COGEN Europe regularly publishes CHP policy and market country reports known as the ‘European Cogeneration Review’. The latest reports on the UK, the Netherlands and Germany are available for sale on www.cogeneurope.eu
 
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For more information please contact:
Dr Fiona Riddoch, Managing Director
Tel: +32 2 772 8290
Fax: + 32 2 772 5044
Email: fiona.riddoch@cogeneurope.eu

Stefan Craenen, Communications Manager
Tel: +32 2 772 8290
Fax: + 32 2 772 5044
Email: stefan.craenen@cogeneurope.eu
 

About cogeneration:
Cogeneration (also known as CHP or Combined Heat and Power) is the simultaneous production of heat and electricity. 11% of Europe’s electricity and associated heat requirements today are produced using this proven energy efficiency principle. The estimated growth potential for cogeneration is a further 110-120 GWe which will lead to an improved environment and greater economic competitiveness in Europe. Cogeneration units can be found in different sizes and applications: industry, households and tertiary sector and spans applications with capacities ranging from below 1kw to hundreds of Megawatts. It is a highly efficient energy solution that delivers energy savings and substantial reductions in CO2 emissions. When seriously supported, as in Denmark, CHP has the potential to increase the energy production and transformation system overall efficiency from a bare 33% (EU average) up to 65%. Realising the potential of cogeneration in Europe will contribute significantly to reaching the strategic climate and energy goals, such as security of supply, energy efficiency and reduction of emissions.
 
About COGEN Europe:
COGEN Europe is the European association for the promotion of cogeneration. We represent 70 organisations which are National COGEN Associations, manufacturers, users, utilities and service companies. Currently around 100,000 Europeans are employed in the cogeneration sector. More info on www.cogeneurope.eu