UK policy environment becoming more favourable for cogeneration

Date

23 Nov 2012

Sections

Energy
UK in Europe

Press release

COGEN Europe today publishes the first of a new series of European policy reports with the ‘European Cogeneration Review – United Kingdom’. The report offers a comprehensive UK policy and market overview aimed at business and other interested stakeholders. The Review covers the latest developments in the cogeneration sector, looking at market potentials and policy implications in the medium term.

Despite the UK government’s continuous high level commitment to support cogeneration, the level of installed CHP capacity has stayed flat over the past five years. The combined impacts of a liberalised energy market, over-capacity in generation and an unfavourable spark spread have contributed to a sluggish CHP market over the past few years. Government action in the wider energy and climate arena has contributed significant policy uncertainty to the mix. Nevertheless, several policy developments, such as the Renewable Heat Incentive and the greater focus on the decarbonisation of heat, now show real promise to drive further growth in the sector.

The UK report is the first in a series of country reports that COGEN Europe will issue over the coming 12 months on cogeneration in Europe. The report is available to order from 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

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