COGEN Europe Cogeneration in Europe
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1 COGEN Europe Cogeneration in Europe 6 October 2015, Madrid Arnaud Duvielguerbigny
2 Agenda Update on EU politics The European energy project Cogeneration and the Energy Union To watch out Final remarks 2
3 About COGEN Europe 3
4 Who we are Structure European trade association for the promotion of cogeneration COGEN Europe was established in 1993 and is headquartered in Brussels The secretariat employs currently 6 people We have a vision Through the promotion of cogeneration, to grow an industry which changes the way Europe provides heat and electricity for a sustainable future Our approach is On behalf of our members we promote the wider use of cogeneration as part of Europe s sustainable energy strategy For this purpose we participate in the EU legislative process and meet with key actors in the European Commission and European Parliament We work closely together with other stakeholders We further our visibility through good working relations with Brussels-based and sector media/press (EurActiv, European Voice, COSPP...) 4
5 European politics 5
6 Since the VIII ANNUAL COGEN SPAIN CONGRESS 6
7 New structure of the Commission 7
8 Climate action and energy Commissioner Miguel Arias Cañete (EPP, Sp) Climate action and energy directorate generals to be under the leadership of a single commissioner 8
9 Climate action and energy The work of Miguel Arias Cañete to be overseen by an Energy Union vice president, Maros Sefcovic (S&D Sk) Mr Sefcovic has no portofolio
10 Crisis management as the daily routine for the EU institutions 10
11 Crisis management as the daily routine for the EU institutions 11
12 Crisis management as the daily routine for the EU institutions 12
13 The European energy project 13
14 The European energy project As a follow up to Juncker s political guidelines Based on the outcomes of the 2030 climate and energy framework A European Energy Union will ensure that Europe has secure, affordable and climate-friendly energy. Wiser energy use while fighting climate change is both a spur for new jobs and growth and an investment in Europe's future. A Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy 14
15 The European energy project On : A Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy A European Energy Union will ensure that Europe has secure, affordable and climate-friendly energy. Wiser energy use while fighting climate change is both a spur for new jobs and growth and an investment in Europe's future. A project featuring 43 roadmaps for legislative initiatives over this Commission term (until 2019) 15
16 Energy Union Secure Supplies Consumer at the centre Internal Energy Market Research and innovation in energy Energy Union GHG Emissions reduction Energy efficiency 1 st annual address on the State of the Energy Union on 16 Nov. 16
17 Cogeneration and the Energy Union 17
18 GWe CHP principle delivering 11.7 % of Europe s electricity in 2013 Significant discrepancies between countries Diverse fuel mix at national level but natural gas is the first fuel High Efficiency CHP saves minimum 10% 20 Primary Energy 0 Relying on EU harmonised definitions/calculatio ns CHP installed electrical capacity in EU* ( ) Year * EU-27 between and EU- 28 as of 2012 ** Incomplete data, due to absence of German statistics for 2010 Of the 113 GWe of cumulative CHP electrical capacity in the European Union (EU), around half is embedded in industry 18
19 TWh TWh Cogeneration principle CHP generated electricity and share in total electricity production by country in 2013 CHP electricity generation (left axis) Share of CHP in total electricity generation (right axis) 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Country Generated electricity and heat in CHP plants ( ) % 12% 10% 8% 6% 4% 2% 0% Electricity production (left axis) Heat production (left axis) CHP share in electricity production (right axis) 19
20 Year Cogeneration plants getting green CHP fuel mix in EU-28 (2013) Oil and oil products 4% Other fuels 12% CHP fuel mix in the EU ( ) Renewable sources 18% Natural gas 45% Natural gas Solid fossil fuels and peat Renewable sources Oil and oil products Other fuels Solid fossil fuels and peat 21% 0% 20% 40% 60% 80% 100% 20
21 Energy Union initiatives EU Network Codes Implementation New Deal for energy consumers Renewable Energy Self- Consumption Communication Integrated Strategic Energy Technology (SET) Plan EU ETS reform New ESD 2030 Consumer at the centre Research and innovation in energy Secure Supplies Energy Union GHG Emissions reduction Internal Energy Market Energy efficiency Energy Labelling Review Electricity Market Design Initiative RES D Review EED Review Heating and Cooling Strategy EPBD Review 21
22 The summer package in short Released on 15 July, it is comprised of: comprising a Communication on a new energy market design a communication on a new deal for energy consumers, A staff working document best practices on renewable energy self-consumption Beside : Legislative proposal for the EU-ETS Legislative proposal reviewing the energy labelling framework 22
23 A European Heat strategy in the making Better understanding of relationship between sectors (electricity-gas-building-transport.) leading to more comprehensive & holistic policies targeting energy services (power, space heating, mobility, process heat, cooling ) Connection between Buildings, electricity supply, RES, GHG Cuts policies to be acknowledged and worked on 23
24 To watch out 24
25 Not just for pure energy policy matter Juncker investment plan EFSI (European Fund for Strategic Investments) is now up and running billion investment plan for Europe EIB already working on projects Energy (infrastructure, EE, RES ) is one of the priority area for funding but no earmarking By mid-2016: Commission will review progress of the Juncker Plan including at the level of Heads of State and Government
26 New state aid doctrine applies Many significant changes were made compared to the 2008 guidelines Many national CHP support schemes are still in the drafting or being studied and blocked at COM level To date, no example of a national CHP scheme being up and running against the EEAG provisions 26
27 CHP section of the EEAG guidelines into question Main aim of the EEAG were to clarify and streamline which and how state aid can be granted to CHP sector However, their starting point is the completion of the internal electricity market Heat is not adequately dealt with by the EEAG Heat is the driver for CHP plant operator, not the traded electricity good 27
28 Why EEAG on operating aid are not well suited for CHP? State aid rules for operating aid granted to CHP plants: very local issue, there is a need to find: a) the heat demand, b) a site technically suitable to the CHP system and c) private actors ready to engage Not at all the same approach as RES-E (PV, Wind, hydro ) 28
29 COGEN Europe recommendations on operating aid Clarification of the way operating aid to cogenerated heat is covered Clarification on the scope for small scale CHP plants Clarification on the bidding process rules for CHP 29
30 Final remarks 30
31 Energy system (s) at a glance Based on Eurostat 2012 data, losses in power stations in the EU 28 reached 56%, i.e. without even considering energy wastage 31 occuring in the transport and distribution networks
32 COGEN Europe The European Association for the Promotion of Cogeneration Avenue des Arts 3-4-5, 1210 Brussels, Belgium T +32 (0) F +32 (0) info@ www.
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