Combined Heat and Power Using energy twice

Combined Heat and Power Using energy twice

WELCOME NOTES Dear reader, The future design of energy supply and the careful use of the existing energy resources are key issues in the 21st century. Among other things, increasing demand for energy and ever scarcer feedstock contribute to a rise in the cost of energy. In connection with the consequences of climate change, this means new challenges for energy policy as well as climate and consumer protection both on a global and a local level. Therefore, Berlin has set its sights high and defined ambitious climate protection goals: In 2020, the city s CO 2 emissions shall be 40 per cent less of what they were in 1990. An economic and intelligent use of energy is one of the mainstays to make energy supply sustainable in the future. We actively support combined heat and power as this technology uses energy in an especially efficient manner. Although the share of CHP in Berlin is high already, it is to be increased further, and this is why the Senate Department for Health, the Environment and Consumer Protection is involved in the initiative KWK Modellstadt Berlin Energie effizient nutzen (CHP Model City Berlin making efficient use of energy) jointly with energy service companies in Berlin. Dear reader, Fossil fuel is a limited resource and global demand for energy is growing. This leads to higher prices a trend that will continue. Thus, energy costs are becoming an ever more important economic factor. Investments in efficient technologies will pay off, both in ecological and economic terms. Combined heat and power generation is an excellent solution as energy is used optimally and loss is reduced to a minimum. CHP is a very well tried and tested technology proven to be successful in practice. With the initiative KWK Modellstadt Berlin Energie effizient nutzen (CHP Model City Berlin making efficient use of energy), politicians and the industry support the further development and spreading of this innovative technology. This leaflet leads into the topic and presents a number of ideas for the application of combined heat and power in practice. Michael Geißler Managing director of Berliner Energieagentur GmbH Katrin Lompscher Senator for Health, the Environment and Consumer Protection

BERLIN A CITY FULL OF ENERGY BERLIN A CITY FULL OF ENERGY Energy consumption in Berlin Vibrant and full of energy, Berlin is Germany s biggest city with 3.4 million people living in 1.93 million households. Berlin s corporate landscape is characterised by highly competitive enterprises. In addition to the building and construction and other industries, a large number of service providers shape the city s economic structure. As a consequence, Germany s capital needs a lot of energy. In 2005, households, traffic, industry and commerce and the service sector have consumed a total of almost 72,000 gigawatt hours, which is approximately the amount of energy required by the entire air traffic in Germany. The largest energy consumer in Berlin is the service sector, followed by private households. The major part of final energy is used for heating rooms and water. On average, electricity accounts for 15 per cent of the total final energy consumption of households in Berlin and for each resident, 5.9 metric tons of CO 2 are released into the atmosphere each year. The goal: Energy efficiency As climate protection today is more important than ever, efficient use of energy is an essential goal for Berlin as well. Climate change has become a global challenge to everyone. Therefore, development and implementation of solutions for the efficient use of energy in the future are given priority in the capital. With its State Energy Programme 2006 2010, Berlin has given a clear signal for climate protection. The goal for 2010 reduction of CO 2 emissions by 25 per cent compared to 1990 has been reached already in 2005, and this gives Berlin a good starting point for complying with the nation-

Final energy consumption in Berlin by sectors (2005) 25% 27% 5% 43% Heat generated in a resource-saving manner is supplied to consumers through a 1,500 km long pipeline system. On top of that, more than 280 block heat and power plants in many places produce heat and power reliably and in an environmentally friendly manner. At the moment, the share of CHP in the local heat market is almost 30 per cent. It is planned to extent the use of CHP in the capital in the long run. BERLIN A CITY FULL OF ENERGY CHP power input per capita 2005 (in kwh) Mining, nonmetallic mineral processing, manufacturing industry Traffic Households Trade, commerce, services and other consumers 1,437 wide regulations regarding the prevention of greenhouse gases in the long run. Vigorous action at all levels is required to achieve additional CO 2 savings and at the same ensure the city s economic growth. 718 713 702 615 A technology contributing to the efficient use of energy already at this moment, and thus to saving considerable amounts of CO 2, is combined heat and power, or CHP for short. CHP technology combines the generation of power and heat and in this way makes optimal use of the existing energy feedstocks. For a city like Berlin, combined heat and power has an excellent potential with regard to energy supply and energy efficiency. CHP is already very important to Berlin as the capital has become a research and production location for innovative CHP technology. With regard to CHP installations, Berlin is top in Germany and has Western Europe s largest district heating network. Berlin Hamburg Brandenburg Saxony Thuringia 489 422 394 381 328 281 270 247 205 194 Mecklenburg-West Pomerania Bremen Saxony-Anhalt Schleswig-Holstein Bavaria Lower Saxony North Rhine-Westphalia Baden-Württemberg Saarland Hesse 71 Rhineland-Palatinate 5

CHP AN EFFICIENT TECHNOLOGY CHP AN EFFICIENT TECHNOLOGY Modern societies cannot exist without energy and the demand for energy is rapidly growing all over the world. Most of the energy is provided by fossil energy sources such as coal, oil and natural gas but the fact is that these resources are limited and energy feedstock prices are constantly rising on the world markets. Another drawback is that the combustion of fossil energy sources produces carbon dioxide which accumulates in the atmosphere and considerably drives the greenhouse effect and climate warming. Therefore, it is all the more important to use existing energy sources as cleverly and economically as possible. Making efficient use of energy In a conventional power station, coal, natural gas, oil and other energy sources are used to drive a generator. This process produces a lot of heat which is emitted to the environment and lost. The fact is that just about 40 per cent of the energy input are converted to electricity in conventional power plants. In contrast to this, combined heat and power plants combine the production of power with the generation of heat. The heat produced in the generation of electricity is also used. In this way, combined heat and power technology makes optimal use of existing energy sources. Up to 90 per cent of the energy input are used. In other words: Compared to the conventional production of heat and power, CHP can save up to 40 per cent of the primary energy. Therefore, combined heat and power makes a considerable contribution to the reduction of CO 2 emissions.

Separate generation of heat and power Loss CHP AN EFFICIENT TECHNOLOGY Fuel Power station Electricity Loss Consumer Fuel Boiler Heat Combined generation of heat and power Loss Fuel CHP plant Electricity Consumer Heat 7

CHP EVERYTHING SPEAKS FOR IT CHP EVERYTHING SPEAKS FOR IT High efficiency Whether coal, natural gas, fuel oil or biomass, the simultaneous generation of power and heat in combined heat and power plants guarantees a maximum of energy efficiency. This excellent technology makes it possible to use up to 90 per cent of the energy input. Resource conservation and climate protection Combined heat and power makes optimal use of the energy put in, so that compared to conventional generation the amount of fuel that has to be used to produce the same amount of electricity and heat is lower. This is why CHP plants not only save up to 40 per cent of primary energy but also the corresponding amount of carbon dioxide emissions. Thus, CHP is an important element of climate protection and contributes to resource conservation. Economic and reliable energy supply A reliable and at the same time economic supply of energy is of central importance to Berlin as a business location. This is ensured in a sustainable and effective manner by promoting and extending the installation of CHP plants. In this way, Berlin not only profits by having a reliable and need-based energy supply but also from an efficient technology that minimises the dependence on energy imports. Safeguarding of jobs and strengthening of the business location Increased use of the CHP technology stimulates business in Berlin. For example, production close to consumption safeguards qualified jobs in the energy and ancillary industries. CHP technology uses know-how in the fields of plant engineering and construction, energy consulting, planning, installation and maintenance. These industries which are important to Berlin s future are sustainably strengthened by the increased use of CHP.

CHP A VERSATILE TECHNOLOGY Combined heat and power is very flexible as the size of CHP plants ranges from small installations for single-family houses to large plants that can supply heat and power to whole districts. CHP A VERSATILE TECHNOLOGY Apart from that, CHP plants can also produce cold to condition the air in buildings. Block heat and power plants can also be used to supply emergency power. This is interesting for hospitals and other consumers that need uninterrupted power supply. Therefore, major conurbations such as Berlin with their multitude of different consumers have a very good starting point for using CHP in many ways. CHP with district heating Large CHP plants can use the combined heat and power principle without a problem and supply power and heat to a large number of households. In Berlin-Mitte, for example, one single CHP plant provides heat and power to most of the district. The core of the plant consists of several large gas and steam turbines. Heat is transported to the consumers via a district heating grid to which other CHP plants are connected as well. The output of the Berlin-Mitte CHP plant is enormous as it supplies heat to more than 60,000 flats and 500 large-scale consumers such as the Museumsinsel, the buildings at Potsdamer Platz and the KaDeWe. Moreover, some 600,000 households in Berlin are provided with eco-friendly power. Combined heat and power plant Mitte in Berlin 9

CHP A VERSATILE TECHNOLOGY CHP in block heat and power plants However, combined heat and power technology can also be implemented in smaller plants. These plants in the output range of between 50 kw and 2 MW supply heat and power to coherent residential areas, blocks of flats, large public service buildings and industrial plants and parks. The compact plants are called block heat and power plants or BHPP for short. Very different technologies can be used for energy production in BHPPs, from combustion engines to gas turbines. Moreover, innovative CHP plants with fuel cells or Stirling engines are being developed or about to be introduced on the market. Natural gas, fuel oil, biogas, vegetable oil and other energy sources can be used in BHPPs. The heat generated in block heat and power plants is transported directly to the consumer via a short-distance heating grid. The electricity produced in the BHPP may be consumed directly on site or fed into the general power grid. Connection to the local grid guarantees reliable power supply also in the case of increased demand. Block heat and power plant in a modern district heat station

CHP A VERSATILE TECHNOLOGY Micro-CHP plant CHP in your home Combined heat and power can be used also in single buildings and even in single-family houses. The smallest so-called micro-chp plants are not larger than a fridge and fit into any boiler room without a problem. They also generate heat and power directly on site. At times when a lot of heat is required, e.g. on cold winter days, an additional burner supports the miniature block heat and power plant. The electricity produced in the BHPP is primarily consumed in the building. Excess power is fed into the local grid. In that case, the block heat and power plant operator receives an amount of money for each kilowatt hour which is fixed by law. Micro-CHP plants produce heat and power in an environmentally friendly manner. Production directly at the consumer minimises losses due to transport. With small CHP plants, the advantages of this technology optimal use of fuel and CO2 emission reduction can be exploited even in comparably small buildings that have no access to the district heating grid. 11

CHP IN ACTION CHP IN ACTION Consumers in Berlin have various options if they wish to profit from the efficient production of energy in CHP plants. On the one hand, they may obtain heat from large CHP stations via the district heating grid and, on the other, heat and power may be supplied to a building by its own CHP plant. Connection to the district heating grid Old buildings that have central heating can easily be connected to the district heating grid of a CHP plant. A small district heating substation is installed in the basement which is not larger than a washing machine. In most cases, the existing heating installation will be used whereas boilers, oil tanks, coal cellars and chimneys are no longer needed. Individual heating systems in multi-family houses have to be converted to central heating. Further information If you are interested in district heating, you should check the following beforehand: Your own CHP plant The use of your own combined heat and power plant is profitable if you require heat all the year round. This is the case, e.g. in buildings with central water heating or in industrial plants that need heat continuously for production. Therefore, block heat and power plants are especially suitable for use in industrial and commercial buildings and in hospitals, swimming pools etc. A BHPP may also be installed in residential buildings with central hot water supply. If the owner of the building does not have the necessary means to install and operate a block heat and power station, he may employ the services of an energy service company. Depending on the contract, the service provider will not only assume the risk during planning, construction and operation of the power plant but also make the investment and handle the administrative duties towards the authorities and network operators. Moreover, the service provider will be responsible for plant maintenance and repair. Is the building located in a district or short-distance heating development area? How is heat provided to the building at the moment? What is district heating to be used for (space heating, hot water, air-conditioning)? For more information on the subject of district heating and its promotion see www.kwk-modellstadt-berlin.de at KWK im Einsatz (CHP in action) and consult with the customer service of energy service companies in Berlin

CHP IN ACTION Further information If you are interested in installing your own CHP plant, you should check the following beforehand: How is the building used (residential, office, other)? What is the annual heat demand (in winter / in summer)? Does the building have central water heating (drinking water)? How is heat supplied to the building and how is the heat distributed inside? For more information on the subject of local combined heat and power generation and its promotion see www.kwk-modellstadt-berlin.de at KWK im Einsatz (CHP in action) and consult with the customer service of energy service companies in Berlin. Available subsidies Heating your home with CHP generated heat avoids CO 2 emissions and saves a lot of energy. There is a range of incentive measures to promote the use of this ultra-modern technology in large, medium-sized and small plants. Government subsidies The Act on Combined Heat and Power Generation amended in June 2008 provides for the promotion of the new construction and modernisation of combined heat and power plants. The focus is on large, medium-sized and small plants. The act defines amounts of subsidies for CHP electricity fed into the grid in the form of extra fees for CHP generated power. Small plants up to 2 MW and mini-plants up to 50 kw receive higher additional fees. The new erection of mini-chp plants in the power range of up to 50 kw is also subsidised. The amounts granted depend on the maximal electric output of the plant and the number of planned annual full usage hours. KfW subsidies KfW Förderbank promotes the CO 2 reduction and moder nisation measures in existing residential buildings. Both first-time connection to a short-distance or district heating grid and the erection of a block heat and power plant may be subsidised. See www.kwk-modellstadt-berlin.de for an overview of the current requirements regarding CHP subsidies. 13

CHP A TECHNOLOGY WITH A FUTURE CHP A TECHNOLOGY WITH A FUTURE Energy supply in Berlin is already to a large extent based on combined heat and power. About ten large power plants in the capital operate on the CHP principle. In addition to that, numerous block heat and power plants provide power and heat, so that CHP already makes a substantial contribution to the efficient use of energy in Berlin. The Federal Republic of Germany has set itself ambitious goals for climate protection. By 2020, CO 2 emissions are planned to be reduced by 36 per cent compared to 1990. To achieve this, the government relies on combined heat and power. The share of CHP in electricity production is to be doubled to 25 per cent within the next twelve years. The associated CO 2 saving potential is 20 million tonnes. There is a large nation-wide potential for the use of combined heat and power generation whose share is to be increased by the extended use of district heating and CHP plants in industry, housing and the service sector. Small CHP plants also make an important contribution to improving the climate balance. The systematic use of the entire CHP technology could save 170 terawatt hours of primary energy in Germany alone. A reduction of that size would mean 50 million tonnes of carbon dioxide less.

In order to achieve this goal, Berlin will continue to force the development of combined heat and power. With regard to CHP application, the capital takes the first place among German cities. The medium-term goal is to establish Berlin as a CHP model city for the whole nation to promote resource-saving energy supply and an innovative climate protection policy. CHP A TECHNOLOGY WITH A FUTURE CO 2 emissions from final energy consumption in Berlin 1990 2005 (1,000 t) 35,000 30,000 25,000 CO2 emissions in 1,000 t 20,000 15,000 10,000 Goal for 2020: 40% 5,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2020 15

CHP MODEL CITY BERLIN CHP MODEL CITY BERLIN KWK Modellstadt Berlin Energie effizient nutzen (CHP Model City Berlin making efficient use of energy) is an initiative of Berliner Energieagentur in cooperation with GASAG, Vattenfall and the Senate Department for Health, the Environment and Consumer Protection. The initiative KWK Modellstadt Berlin Energie effizient nutzen (CHP Model City Berlin making efficient use of energy) defines combined heat and power as a key technology for a climate-conscious future. The initiative aims to inform people living in Berlin about the technology and its advantages and make a substantial contribution to extending the share of CHP. Berlin is systematically positioned as a CHP model city for other regions as well, not only in Germany. Berliner Energieagentur GmbH (BEA) is a modern energy service company located in Berlin aiming to promote the efficient use of energy with innovative projects to reduce energy costs and carbon dioxide emissions. In more than 60 locations in and around Berlin, BEA is managing state-of-the-art power stations in residential and commercial as well as public buildings in which a total of 40 BHPPs produce heat and power locally. Moreover, BEA is involved in the development and practical application of advanced technologies in the field of micro-chp.

CHP MODEL CITY BERLIN Berlin Senate Department for Health, the Environment and Consumer Protection GASAG Berliner Gaswerke AG stands for reliable supply with natural gas and the use of energy-saving, environmentally compatible and innovative technologies. GASAG is supplying energy to more than 600,000 customers and more than 700,000 flats are heated with eco-friendly and inexpensive natural gas. GASAG supports the market launch of micro-chp plants in Berlin. Moreover GASAG Wärmeservice GmbH is operating a large number of block heat and power plants in Berlin and offers comprehensive heat services all over Germany. The Senate Department for Health, the Environment and Consumer Protection is responsible for Berlin s environmental policy. With an active climate protection policy, the federal state of Berlin promotes the further development of CHP. The aim is to consolidate Berlin s leading position in the use of combined heat and power technology. Vattenfall Europe Berlin is an important member of the European Vattenfall group whose core activities are focused on the electricity, heat and refrigeration business. On the German market, Vattenfall sets standards for a reliable environmentally friendly and customer-oriented energy supply. In Berlin, the company is operating ten highly efficient combined heat and power plants that are a mainstay of Berlin s CHP generation. Furthermore, Vattenfall erects and operates local block heat and power plants for clients. 17

TECHNICAL TERMS IN BRIEF TECHNICAL TERMS IN BRIEF Energy consumption Primary energy and final energy The term energy consumption means the use of fuels and electricity. From the point of view of physics, energy cannot be consumed in a closed system but only converted. However, the term is commonly used to describe the process of using energy. Kilowatt hour (kwh) One watt hour (Wh) is the energy which a machine with a power of one watt consumes or delivers in one hour. Energy consumption is mostly stated in kilowatt hours (kwh). A kwh is 1,000 Wh. The average annual consumption of a two-person household is about 2,200 kwh electricity and 10,000 kwh heat. Carbon dioxide (CO 2 ) Carbon dioxide is a gaseous chemical compound consisting of carbon and oxygen. CO 2 is, for example, created when fossil fuels are burnt. The gas accumulates in the atmosphere. A high concentration of CO 2 results in a general temperature increase on earth. Utilisation ratio The utilisation ratio is the ratio between the amount of energy input and utilised in a plant within a certain interval. The higher the utilisation ratio, the more efficient use is made of the energy. Primary energy is the energy occurring in nature which has not yet been converted. A distinction is made between fossil fuels such as brown coal, hard coal, natural gas and crude oil; and renewable energies such as biomass, water power, solar energy, geothermal energy and wind energy. Primary energy is converted into secondary energy in processes such as combustion or refining. Losses occur during conversion and transport. The energy arriving at the consumer is called final energy. Greenhouse effect The increasing use of fossil energy resources releases greenhouse gases such as CO2 which in high concentration create the greenhouse effect. Solar radiation reaching the earth heats up the surface. Greenhouse gases in the atmosphere prevent the heat from being discharged into space completely. The temperature on earth increases continuously and this changes our climate.

Imprint Publisher: Berliner Energieagentur GmbH Editorial staff: Min-ku Chung, Jörg Schaarschmidt, Alena Müller Layout: Dorland Werbeagentur GmbH Picture credits and sources: P. 4, photograph: Bernd Kröger Fotolia.com P. 5, diagram on left: Data basis: Amt für Statistik Berlin-Brandenburg / Statistisches Landesamt Berlin P. 5, diagram on right: Data basis: Arbeitsgemeinschaft für Wärme und Heizkraftwirtschaft P. 6, photograph: Ralph Lösche istockphoto.com P. 8, photograph: Makuba Fotolia.com P. 9, photograph: Vattenfall Europe Berlin P. 10, photograph: Claus-Christian Schaar P. 11, photograph: Senertec / ASUE P. 14, photograph: Sergey Galushko Fotolia.com P. 15, diagram: Data basis: Amt für Statistik Berlin-Brandenburg P. 16, diagram: Dorland Werbeagentur GmbH Edition: August 2008 No part of this publication may be reproduced without the prior permission of the publishers. Environmentally friendly printed on FSC-certified paper. Berliner Energieagentur GmbH Französische Straße 23 10117 Berlin E-Mail: office@berliner-e-agentur.de www.berliner-e-agentur.de Phone: (030) 29 33 30-0 Fax: (030) 29 33 30-99

KWK Modellstadt Berlin (CHP Model City Berlin) An initiative of Berliner Energieagentur in cooperation with GASAG, Vattenfall and the Senate Department for Health, the Environment and Consumer Protection. www.kwk-modellstadt-berlin.de