Country report Belgium (Flanders) 05/2004 ( )

Transcription

1 Country report Belgium (Flanders) 05/2004 ( ) European Commission (Directorate-General for Energy and Transport) Contract no. NNE5/2002/52: OPET CHP/DH Cluster

2 TITLE Author(s): Guy Vekemans and Johan Liekens Organisation: VTC Address: Boeretang 200 B-2400 Mol Tel.: +32/ Fax: +32/ Web: The project "OPET CHP/DH Cluster" has obtained financial support from the European Commission (Directorate-General for Energy and Transport) under the contract no. NNE5/2002/52 for Community Activities in the Field of the specific programme for RTD and demonstration on "Energy, Environment and Sustainable Development - Part B: Energy programme" The responsibility for the content on this publication lies solely with the authors. The content does not necessarily represent the opinion of the European Community and the Community is not responsible for any use that might be made of data appearing herein. European Commission (Directorate-General for Energy and Transport) Contract no. NNE5/2002/52: OPET CHP/DH Cluster

3 Contents 0 Summary 1 1 Surveys Review of Small and Micro CHP Related Policies and Measures Installed capacity Potential Technology 5 2 Developing Tools and Measures Evaluation of Policy Measures Evaluation of tools 8 I

4 Country report 0 Summary The total installed qualitative CHP power in the Flanders region of Belgian amounts to 1121 MW e in Well over 850 MW of this CHP is of high quality according to the Flemish quality definition for CHP. About 15% of this capacity is produced by engines in lower capacity ranges. In the range of micro cogeneration almost no installations have been realized (about 10 installations with an average power of 5 kwe each are known). The residential heating market in Flanders is quite conservative, installers are not familiar with the cogeneration techniques. In connection with this there are no fixed feed in tariffs to guarantee the revenues. In the nineties cogeneration was economically beneficial in the industry. But recently a stagnation is noticed in the installed cogeneration power, due to unfavorable energy prices and a waiting attitude towards the system of cogeneration certificates that was introduced in March The two main financial measures on tax deduction and ecology support on cogeneration investments do not seem to be sufficient at this moment to trigger new investments in cogeneration. In addition for the future some new perspectives can be seen in the biogas valorization (food industry, wast water treatment, manure processing) by small scale cogeneration, where due to green certificates some minor investments may be beneficial. Large investments in green cogeneration however were still not likely since there was a lack on a long term guarantee for the revenues of green certificates. However new proposals are recently adopted which guarantee the investor for a period of 10 years of a minimum revenue for green certificates. 1

5 1 Surveys 1.1 Review of Small and Micro CHP Related Policies and Measures In the Energy Policy Letter 2003 of the Flemish government the installation of an additional cogeneration capacity of 600 MWe between 1998 and 2005 is mentioned as one of the objectives on the level of energy production. This means an installed power of qualitative cogeneration of 1278 MWe in 2005 and 1832 MW in This objective has been integrated in the Flemish Climate Policy Plan which was approved by the Flemish government on 28 June As mentioned the definition of qualitative cogeneration is important in Flanders. This means that the relative primary energy saving is the main point of focus. The main policy tool to achieve the objectives as mentioned above is the introduction of a system of cogeneration certificates. This system will impose the energy suppliers to deliver each year a minimum amount of cogeneration certificates. If the required amount is not achieved a fixed penalty for each missing certificate will have to be paid by the energy supplier. With this system a market of certificate trading (comparable to green certificates but based on the realised primairy energy saving rather than on the electricity production) will be created, where cogeneration owners can sell their certificates on the market. Cogeneration owners therefore not only benefit from the energy savings obtained by the cogeneration but also by the value of the certificate. For this each CHP-unit has to be registered, approved (if > 1 MWe) and also monitored (if > 200 kwe). Only qualitative cogeneration systems get certificates (a minimum level of 5% relative primary energy saving, compared with 50%/55% electrical efficiency and 85%/90% thermal efficiency is currently set as quality level). The value of the certificates also decreases with the lifetime of the CHP-unit. The Decree on cogeneration certificates dates from 5 March The first certificates can be applied for on the first of january Apart from the system of cogeneration certificates, two financial support mechanisms exist for cogeneration: investment deduction and ecology support. This means that for energy saving measures an additional fiscal deduction on the investment is possible of 13,5% and the ecology support consists of a subsidy on the investment of 10 to 20% depending on the type of company (SME, larger industry). The latter subsidy will be augmented in the course of 2004 to 20 35%. To obtain both measures the sum of electric efficiency and 2/3 of thermal efficiency should be higher than 55%. 2

6 1.2 Installed capacity The figures and tables below give some idea of the installed capacity in Flanders (Belgium). It can be noticed that since 2001 there is a stagnation of the installed power. This is mainly due to the unfavourable electricity and gas prices, the uncertainties linked to the first phase of market liberalisation and the waiting attitude toward the system of cogeneration certificates. The main installed capacity are the larger gas turbines in the industry (about 600 MWe). For engines the installed capacity is about 150 MWe and is situated primarily in the horticulture and industry. Natural gas is the most used energy source, although both in horticulture and industry fuel oil is not neglible (between 15-20%). Most of the landfills have been equipped with CHP but the potential is limited and the heat is not always used. In the residential sector (micro CHP) there is no significant amount of installed cogeneration. There has been a limited growth of installed engine capacity after 2000, also partly supported by the introduction of green certificates. Since 2000 there were however no new turbine based CHP-units build in Flanders. Two major projects in the industry are waiting. Number of projects with engines Figure 1: Cogeneration with engines, number of projects 3

7 Installed electrical capacity of engine based CHP 160 MWe 140 MWe 120 MWe 100 MWe 80 MWe 60 MWe 40 MWe 20 MWe 0 MWe ,9 MWe ,3 MWe 2003 Figure 2: Cogeneration with engines, installed capacity Installed electrical capacity of engine based CHP 80 MWe 70 MWe 60 MWe 50 MWe 40 MWe 30 MWe 20 MWe 10 MWe 0,6 MWe 2,2 MWe 5,4 MWe 7,2 MWe 0,2 MWe 6,7 MWe 45,3 MWe 55,8 MWe 0 MWe Waste processing Industry 0,0 MWe 0,3 MWe 2,1 MWe 3,2 MWe Offices/ Residential 0,3 MWe 2,7 MWe 3,2 MWe 3,1 MWe Sport/ recreation/ culture 6,6 MWe 13,2 MWe 52,8 MWe 71,7 MWe Horticulture 0,1 MWe 1,9 MWe 7,6 MWe 10,3 MWe Hospitals and rest homes Figure 3: Cogeneration with engines, application fields 4

8 1.3 Potential In 1997 the Energetic potential for cogeneration in Belgium was estimated to be 3200 MWe. Electrabel, the main electricity supplier and producer in Belgium and also the main owner of CHP-units in Blegium estimated the economic potential to be about 50% of the energetic potential. 75 à 80% of this potential would be situated in the Flanders region of Belgium. Based on these figures the Policy Letter on Energy 2003 of the Flemish Government proposed following economic potential for cogeneration in Flanders: Table 1: Estimated economic potential for cogeneration in Flanders) Sector Economic potential Flanders (MWe) Large industry 1320 Small/medium sized industry 120 Horticulture 80 Tertiary sector 200 Residential Direct propulsion 100 Total 1820 The figures as mentioned above are of course closely linked to energy price evolutions, but with the current stagnation of installed capacity the objectives are still a major challenge. 1.4 Technology Engine technology Engine technology is applied in the power range from 15 kw to 2,8 MW. A list of common trade marks in given below: MAN Dorman Waukesha Valmet Perkins Caterpillar Jenbacher MWN GM Fiat Cummins Volvo Smaller engines in the range of 5 kwe (type Senertec) are available on the Belgian market but application has been very limited (some demonstration projects amounting about 10 engines). Generally the unit capacity of the engines is increasing. In % of the installed engines has a capacity over 1000 kw. 5

9 Gas Turbine technology Turbines are applied in the range from 25 to 51 MW e. 14 projects, with a total installed capacity of over 600 MW e were counted in 2002 including 4 STEGs. Most of this technology is installed in the chemical industry. Typical trade marks are the General Electric LM-6000 (9 projects). All of these projects are a collaboration of the industrial partner and the electricity supplier Electrabel. Steam engine technology Not employed in Belgium Steam Turbines In the Flemish industry about 330 MWe of steam-turbine based CHP is identified. About half of this figure concerns quality-chp according to the Flemish quality definition for CHP. Most of these turbines are rather old; about 60 MWe of new turbines are reported in the priode A minority of the Belgian electricity stations provide heat to neighbouring companies or sites. However most of the heat is dissipated in the condensors which makes that those installations can hardly be termed to be CHP. Therefore no electricity stations are included in the above mentioned figure. New technologies The application of microturbines ( kw e ) has recently been evaluated for the Flanders region of Belgium. In the Walloon region of Belgium a microturbine project on waste disposal is about to start. Several suppliers are slowly coming on the market, and at this moment some projects are in a preliminary phase. Especially the sectors of biogas (landfill, food industry) and horticulture seem to be interested. For microturbines Capstone is one of the most important trade marks. Turbec has recently stopped its production activities. Capstone offers a specific low Btu version for biogas, but the supply of adapted gas pre-treatment units is still a point of improvement. There is a clear need for low cost and compatible gas cleaning and gas compression technology. In addition the market would be interested in microturbines with a higher capacity (e.g. 200 kw e ) and a higher electrical efficiency (> 35%). This market segment is especially supported by the trade in green certificates. Fuel cells are not yet sold and applied in Belgium for stationary appliances. Research is going on in several Belgian research groups in order to support the technological development of fuel cells and hydrogen society in Belgium, but direct introduction in not expected for the coming years. 6

10 2 Developing Tools and Measures 2.1 Evaluation of Policy Measures Demonstration support Demonstration support (up to 35%) has helped in the nineties to launch some successful cogeneration projects in several sectors: horticulture, milk industry, hospitals, land fill, But only a limited number in the housing sector (especially social housing). The support was only limited to the first application of a specific technology in a specific sector. Brochures were written for each project and communicated on workshops. The response in the nineties to these examples was estimated to be fair. Demonstration support for common CHP is not applicable nowadays, however new CHP technologies as microturbines are however likely to be integrated. Fiscal support for investments and ecology support Both instruments are being revised at the moment and support is likely to be increased in the new version (up to +20%). This can be an important driver for investors, but apparently these measures alone are not enough to convince investors. The other elements, cogeneration certificates and long term guarantees, need to be addressed as well. Special attention goes to the interference of the revenue from certificates (both green and CHP) and the amount of ecology support. The European Commission has recently obliged the Flemish governement to reduce the ecology support (in the new form) with the expected actualised revenues from the certificate systems in the first 5 years of operation. It is still a question whether the new ecology support will be absolutely higher then the existing support. Green certificates Green certificates are now being applied and have a moderate success (targets are not met completely at this moment). Nevertheless they seem to offer a fair support for cogeneration with green energy sources. Some projects have started in the valorization of land fill gas, manure and biogas in the food industry. Examples show indeed that green certificates will determine the financial viability of a cogeneration project more than can be expected from the cogeneration certificates. Cogeneration certificates Cogeneration certificates have just been introduced. It is too early to make an evaluation. 7

11 2.2 Evaluation of tools Information dissemination At this moment 2 promotion organisms are active in the field of cogeneration: Cogen Flanders and Belcogen. Both have developed some information tools, e.g. handbook on cogeneration, newsletter on cogeneration, website with available support, list with available suppliers. Also discussion forums are organised by these parties. Although the market is waiting, information dissemination on cogeneration is still quite active in Flanders, also on the level of the new technologies. Calculation tools for feasibility studies There is no common evaluation tool for CHP feasibility in Belgium. 8