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EU Energy Efficiency Legislation Falls Short of Proper National Implementation New Cogeneration Study Reveals



New COGEN Europe National Snapshot Survey shows that the identified potential for additional cost-effective energy savings and CO2 emission reductions from cogeneration remains untapped due to weak national implementation of EU energy efficiency legislation. National experts surveyed warn that existing cogeneration capacity may also be at stake, if the Clean Energy Package fails to effectively deliver the “energy efficiency first” principle at national level.

The 2017 Snapshot Survey, published by COGEN Europe today, covers 21 countries from the European Union and Turkey, capturing trends in 94% of installed cogeneration capacity across Europe. According to the Survey, the fastest growing segments across Europe are small-scale cogeneration installed on site and renewable cogeneration. Meanwhile, cogeneration in key sectors like district heating and industry has experienced sluggish growth. Cogeneration today generates 11% of EU’s electricity and 15% of its heat, delivering close to 15% of EU’s 2020 energy efficiency target and more than 20% of the EU CO2 target [1]. According to the EU project CODE2, cogeneration could double by 2030 [2]. Yet, the sector warns that even the existing cogeneration capacity may decline, if the policy framework at national level fails to recognise the benefits it brings to European consumers and industry.

The Survey reveals that policy plays an important role for cogeneration at national level, comprehensive and predictable policy frameworks being associated with growth. However, most cogeneration markets in Europe are negatively impacted by unpredictable and fragmented policy environments. In most countries, the implementation of cogeneration provisions in EU legislation (e.g. Energy Efficiency Directive 2012/27/EU) was rated as patchy and lacking ambition in EU countries representing more than 70% of the installed cogeneration. These factors are eroding investor confidence in the context of already unfavourable energy markets in some countries.
Hans Korteweg, COGEN Europe’s Managing Director, commented on the Survey findings: “The Snapshot Survey provides timely insights for the ongoing Clean Energy Package discussions. Given its strategic role for the energy sector and European economy, cogeneration should be high on policymakers’ agendas when discussing energy efficiency, renewable energy and electricity market design. Moreover, cogeneration should be accounted for as part of the climate and energy plans in the context of energy governance and support scheme stability principles in the Renewable Energy Directive revision should be extended to cogeneration schemes. This will ensure that existing cogeneration investments are secured and that cogeneration growth can further contribute to energy and climate objectives post-2020
An Executive Summary of the Snapshot Survey is available here. The publication is free of charge for COGEN Europe members and policymakers. If you are interested in purchasing the publication, please contact Tanya Carre.
[1] COGEN Europe calculations based on CODE2 Project and Eurostat

[2] CODE2 Project, 2014

Check out the full 2017 COGEN Europe Snapshot Survey! 



About the COGEN Europe National Cogeneration Snapshot Survey:

Each year, COGEN Europe takes a snapshot of business confidence in the cogeneration (combined heat and power, or CHP) sector by gathering the expertise of national cogeneration representatives from across Europe. The 2017 Snapshot Survey covers 21 countries from the European Union and Turkey, capturing trends in 94% of installed cogeneration capacity across Europe. For the first time, the Survey covers cogeneration outside Europe, providing insights on Japan. The Survey assesses the latest market trends, evaluates new policy developments, provides an outlook for the next five years and makes policy recommendations.



COGEN Europe, the European Association for the Promotion of Cogeneration, is the cross-sectoral voice of the cogeneration industry. Its mission is to work with EU institutions and stakeholders to shape better policies and eliminate administrative, regulatory and market barriers to the wider use of cogeneration in Europe. It aims to build a robust evidence-base to show the benefits of cogeneration, using the expertise of its membership, and establishing strong coalitions and partnerships.



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