changing the way europe provides heat and electricity for a substainable future

Transcription

1 Cogenerazione 2012 :L Italia e l Europa a confronto Milano 14/02/2012 changing the way europe provides heat and electricity for a substainable future

2 Content The current position of cogeneration in Europe s heat and electricity supply The view from Brussels The Energy Efficiency Directive 2012 Opportunities and threats

3 Cogeneration in Europe s heat and electricity supply 3

4 The draft EE Directive Illustration of the CHP growth rate increase required up to 2020 in order to achieve the potential identified by the MS: Roughly 11% of the CHPs are fuelled by bioenergy

5 Share (%) of CHP in total generation Plus 1000 TWh heat with 122 GWe < 5% 5-10% 10-20% 20-30% >30%

6 European economic potential for cogeneration in 2020

7 Installed CHP power [MWe] Flanders CHP Certificates Effects Installed electrical power of CHP [MWe] Big increase in industry and green houses Start support CHPC Industry Green houses Waste incineration Buildings 7

8 CHP projects under the new German CHP law 4546 projects over period 01/01/09 01/05/10 alone under the new law. Total Support to CHP 525 MEUR (in 2008); 634 m EUR (2009) CHP charge to end user cents per kwh Capacity Contracts Total support >2MWe MEUR 50kWe to 2MWe MEUR Up to 50kWe MEUR

9 Main issues for the sector The industry has said for some time now That at the market level there are still considerable barriers to operating CHP ( economic and non-economic) which remain to be addressed and present high barriers to entry for new cogeneration. For individual new cogenerators the business model must work..there must be a reasonable return on investment. 9

10 The view from Brussels 10

11 Primary energy consumption*, Mtoe % Energy efficiency target for 2020 Historical consumption (Eurostat) Baseline projections for 2020 (Primes 2007) 20% Energy saving objective 1842 Mtoe Mtoe Expected achievements** Mtoe Mtoe 20% objective Mtoe

12 The draft CHP/Energy Efficiency Directive Aiming at achieving the 20% EE target Reminder of what the IAS tells us:

13 Prospects: possible issues Help and speed up realisation of national CHP potentials Better integration with heat & electricity markets Better integration with energy efficiency market Integrated planning & authorisation Network access and infrastructure issues District heating & cooling Alignment with long-term strategy: 2050 roadmap

14 Prospects: facts & context CHP share overall grew 0.5% p.a. between with important differences between MS Heat & cooling consumption will continue to grow: 0,19% p.a. & 3.14% p.a., respectively until % p.a. growth in heat demand Most promising sectors households & services: 33+20% - growing Industry: 44% - declining Av. growth rate needed to realise this potential till 2020: 5.9% p.a. from 10.9% in 2007 to 20.3% in 2020 otechnical potential is approx. 2x economic potential

15 Prospects: facts & context Current primary energy consumption and CO 2 emissions reduction: approx. 35 Mtoe p.a. & 100 Mt of CO 2 p.a. Most national potential reports indicated large unexploited potentials osignificant saving potential in primary energy (e.g. coal, other fossil fuels) osignificant cost savings and import reduction at national level osignificant CO 2 and other pollutant reductions Additional savings Mtoe p.a. & Mt CO 2 p.a.

16 The Energy Efficiency Directive

17 Energy Efficiency Directive Directive Main Points Effecting CHP Current Status Comments Combined review of the Energy Services Directive and the CHP Directive Carries forward methodology from the Directive 2004/08/EC All new utilities over 20MW will be default CHP or have to apply for exemption All new industrial plant over 20MW will be default CHP or have to apply for exemption Priority of access and priority of dispatch for CHP is fully reinstated Heat and cooling plans for member states with considerable additional data collection from the energy sector. European Commission published their proposal in June 2011 The ITRE committee is review the over 1800 ammendments Vote on consolidated ammendments 28 th February DG Energy is strongly supportive of CHP Member states do not support the utility authorisation or grid access for CHP The Parliament are proposing a cost benefit hurdle for new plant and prioritise only renewable CHP for dispatch and access.

18 Energy Efficiency Directive June 2011 Article 3:Member states set own Energy savings target Articles 4,6 : introduce efficiency targets for public buildings and energy distributors Article 10: requires new and refurbished utilities, and new industry over 20MW to be CHP or be covered by exemption Article 10: heat planning, guarantees of origin, local planning structure to support new authorisation requirements Article 12: priority of dispatch and transparency of tariffs Article 19: supervision by Commission

19 Priorities for cogeneration in the EED 1)Continuity of methodology and reference values ( MS legislation)...vital for investors..build on success. 2)Priority dispatch and access for electricity...part of that continuity...from the original directive has been reinforced. 3)COGEN welcomes the Heat planning elements of the Directive putting focus on heat in the European Economy. 4) New authorisation proposals for utilities and industry...bold move by the Commission but after the first shock we re right to look at the merits of the proposal. 5)Links to the overall member states savings plans and targets...the current measures on cogeneration are a little too much adrift in the overall context of the Directive for clear accountability in implementation of the Directive. 6)Micro CHP provisions...pioneering technology. It chimes with the smart gids, load management scenarios of 2020 and links to citizen...it empowers citizens. This should be the directive which reinforces that sector.

20 Current understanding of the CA on art 10 from ITRE: Below is the logic of the paragraphs contained in art 10 and its associated annex VII, planning for efficiency in heating and cooling, and the new annex VIII bis introducing the Cost-Benefit Analysis. Clearly, linkages between all those elements are missing + the legal basis for most of paragraphs is not ensured (Commission cannot therefore take actions) Legal existence of par.1 in front of the European Commission Par 1 Par 2 Par 3 Par 6 Par 8 Par 5 National heating plan containing at least the info from annex VII National policies to ensure the development of HE CHP and DHC Provisions for power plants and industrial facilities request to adopt favorable planning rules To be rendered public. Mainly data and «static» info Request to do it at MS level, but no EC scrutiny possibility Based on CBA, on a case by case basis Wish but no EC intervention New CBA annex VIII bis No concrete linkage from those paragraphs to par 1. and its reporting obligations

21 COGEN Europe suggestions: Art 10 «promotion of efficiency in heating and cooling» must be tighten up, otherwise the improper carrying out of the CBA at site level will hamper the aim of the whole art 10 We suggest to amend the language around the implementation of the heating plan in par.1 We recommend to link par. 2 to par. 1 so that legal existence is brought about in what regards the adoption at national level of measures Art 19 review and monitoring of implementation must clearly call for an assessment of supply side energy efficiency actions and possible corrective actions Repair of an omission in par. 2 Possibility for the Commission to require MS to do more on the legislative side for installations > 50MW Art 12 : Maintain the status of CHP as in original Directive

22 8 Amalia Sartori EPP, Italy Member ITRE Chairmen ITRE 5 Patrizia Toia S&D, Italy Member ITRE & Vice-Chair ITRE 8/9: Attended the lunch debate Gabrielle Albertini EPP, Italy Member ITRE vittorio prodi S&D, Italy Member ITRE Aldo PATRICIELLO EPP, Italy aldo.patriciello@eur E217 1 Fiorello Provera EFD, Italy Substitute ITRE Shadow EFD

23 SMART GRIDS

24 24 How intelligent is smart grid?

25 Smart Grid Drivers Energy consumption forecasted to double by 2050* Higher annual cost to the economy due to power outages and interruptions Intelligent energy appliances will help industry and consumers save 7% on their energy consumptions* Clean Energy Generation Efficient Energy Delivery Empowered Energy Consumers - Long-term energy demand increasing - High penetration of Renewables - Aging infrastructure and restricted asset investment - Importance of reliability & quality - * Deciding the Future: Energy Policy Scenarios to World Energy Council and A Guide to Smart Metering - ESMIG

26 Energy Roadmap 2050

27 Cogeneration in Europe to 2050

28 Cogeneration Directive requirements Cogeneration Directive 2004/08/EC completed in Brussels end of 2008 European Directive developed under the energy strategy to promote cogeneration for its contribution to security of supply and energy efficiency Sets up a policy framework for the promotion of cogeneration The Directive requires Member States to report on several aspects their cogeneration use and promotion Report on Progress Put Guarantee of origin and statistical reporting in place Estimate Cogeneration potential Review support mechanisms Identify Barriers

29 CODEII Project Implementation Analyse Member State CHP potentials Bio and micro CHP Use member states reports to propose way forward Progress? Propose CHP roadmap for Europe Use Pilot countries (Italy +6) to develop effective roadmap process What next? Present Pilots and workshops across all member states

30 European Union Energy and Climate Sustainable growth and jobs are the focus of current thinking Europe s Energy and Climate 20/20/20 targets are being supported The energy efficiency target will not be met and the new Energy Efficiency Directive tries to correct this Can energy savings and cogeneration become part of the engine of recovery?

31 ENDS