Cogeneration Observatory and Dissemination Europe - CODE2 ROADMAP FOR COGENERATION OF HEAT

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Cogeneration Observatory and Dissemination
Europe - CODE2 ROADMAP FOR COGENERATION
OF HEAT POWER FOR CYPRUS
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• Costas G. Theofylaktos
• BoD of HACHP-Team Leader

Nicosia, March 28th, 2014
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Introduction to CODE2

• CODE2 project is jointly funded by the IEE and
  industry, as it
• develops the first clear plan of action for CHP
  in each EU M-S.
• gathers all the interested experts and forms
  information networks around cogeneration.
• reviews existing published data and presents
  conclusions.
• introduces in details the new EED and assesses
  with national stakeholders what the impact will
  be.
• does the first specifically micro-CHP and
  bio-energy CHP analysis.
• CODE2 mobilises effort in each of the 27 EU M-S
  for the promotion of Cogeneration of Heat and
  Power.

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Expected results

• A further strengthening of the previous CODE
  Regional Network.
• 27 National Cogeneration Roadmaps and one
  European Cogeneration Roadmap with concrete
  proposals for policy improvement, expansion in
  key industry sectors and awareness raising.
• Identification of micro-CHP and bio-energy CHP
  potentials
• Workshops in pilot countries where draft Roadmaps
  are discussed.
• Establishment of CHP Coalitions in 27 EU Member
  States involving industry, policy-makers and
  interest groups.
• Practical How-to guides for key sectors (paper,
  food, hotels, SMEs).
• Best practice cases on cogeneration in target
  sectors.

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Partners contact details

• Project Coordinator Fiona Riddoch, COGEN Europe,
  fiona.riddoch_at_cogeneurope.eu
• Partner responsible for Eastern Europe region
  Stane Merše, Jožef Stefan Institute (JSI),
  stane.merse_at_ijs.si
• Countries Czech, Estonia, Hungary, Latvia,
  Lithuania, Poland, Slovakia, Slovenia
• Partner responsible for Northern Europe region
  Adi Golbach, KWK kommt, adi.golbach_at_kwkkommt.d
  e
• Countries Austria, Denmark, Finland, Germany and
  Sweden
• Partner responsible for North Western region
  Joni Rossi, COGEN Vlaanderen,
  joni.rossi_at_cogenvlaanderen.be
• Countries Belgium, Ireland, Luxembourg,
  Netherlands and United Kingdom
• Partner responsible for South-Eastern Europe
  region Costas Theofylaktos,
• Hellenic Association for the Cogeneration of
  Heat Power (HACHP) hachp_at_hachp.gr
• Countries Bulgaria, Cyprus, Greece, Romania
• Partner responsible for South-Western Europe
  region Giorgio Tagliabue, Federation of the
  Scientific and Technical Association (FAST),
  giorgio.tagliabue_at_gmail.com
• Countries France, Italy, Luxembourg, Malta,
  Portugal, Spain

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The Roadmap for CHP for theRepublic of Cyprus
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General Energy Data for Cyprus

• Cyprus is characterized by the lack of natural
  gas grid. The main fuels used are oil, coal and
  biofuels. Especially for CHP installations the
  main fuel used is biogas.
• According to EUROSTAT, energy dependence was
  92,4 for 2011 much higher than the average of
  EU-27 (53,8).
• There are no district heating or cooling
  installations in the island.
• The CHP share of total heat generation reached
  in 2009 at 0,71.

1Combined heat and power (CHP) (ENER 020) -
Assessment published Apr 2012, European
Environment Agency
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CHP Share of gross electricity generation2
2 Eurostat
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Potential of CHP electricity capacity3
3Assessment of national potential for
cogeneration in Cyprus (2009)
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Potential of CHP thermal capacity4
4Assessment of national potential for
cogeneration in Cyprus (2009)
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Legal framework for CHP in Cyprus

• Law on the Promotion of Cogeneration and Heat
  (2006)
• Modification law of the Promotion of Cogeneration
  and Heat Law (2012)
• Assessment of national potential for cogeneration
  in Cyprus (2009)
• Project grants to encourage the use of renewable
  energy and energy efficiency (2012 - No.2) (sets
  the amount of subsidies for energy projects)
• 2nd NATIONAL ENERGY EFFICIENCY ACTION PLAN OF
  CYPRUS (2nd NEEAP)

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Legal frameworkImportant points in EED
2012/27/EU

• The obligation of a CBA for installations with
  total thermal input exceeding 20MW
• The development of network tariffs and
  regulations
• Priority or guaranteed access to the grid of
  electricity from high-efficiency CHP
• Capability of connection to the grid system of
  electricity produced from high-efficiency
  cogeneration from micro-cogeneration units
• Simplification and shortening of authorization
  procedures
• High-efficiency cogeneration will be encouraged
  to be sited close to areas of demand by reducing
  the connection and use-of- system charges
• Provision of incentives for auto-producers to
  connect to the grid and sell their surplus
  electricity production
• Specific target establishment
• Annual saving of energy consumed by 1.5 starting
  at 1/1/2014 till 31/12/2020
• Training and education, including energy advisory
  programs, that lead to the application of energy-
  efficient technology or techniques and have the
  effect of reducing end-use energy consumption
• Mandatory Energy audits

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Support available for Cogeneration

• Current support schemes
• The Energy Authority of Cyprus defines the
  purchase tariffs for cogenerated electricity
  which are linked to the fuel price
• There are some subsidies for biomass
  installations and district heating and cooling
  using biomass as fuel that reach the 30 of the
  total investment
• Future - proposed support mechanisms5
• Easier connection to the grid and with better
  economical terms
• Priority during load allocation (there is a
  11MWe limit)
• Capital subsidies
• Financial support for HECHP up to 30 MWe
• Better Feed-in-Tariffs prices
• Tax exemption
• Favorable prices should be established for
  primary fuel used in HE-CHP systems
• VAT exemption for micro HE-CHP units (up to 50
  kWe),
• Incentives for the installation of trigeneration
  in the household and tertiary sector

5Assessment of national potential for
cogeneration in Cyprus (2009)
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Potential for Cogeneration
6EU energy trends to 2030 UPDATE 2009,
EUROPEAN COMMISSION Directorate-General for
Energy in collaboration with Climate Action DG
and Mobility and Transport DG
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Potential for Cogeneration
7EU energy trends to 2030 UPDATE 2009,
EUROPEAN COMMISSION Directorate-General for
Energy in collaboration with Climate Action DG
and Mobility and Transport DG
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Barriers for the promotion of CHP in Cyprus

• Climate conditions
• Complexity connecting to the electricity grid
• Priority to connection with load limits (7 or
  11MWe) for CHP plants
• Fuel prices, cost of purchasing fuel, pricing of
  cogenerated electricity
• CHP System Licensing Procedure
• The Cypriot markets lack of experienced energy
  service companies (ESCOs), which could more
  effectively promote certain CHP applications
• The immature market, given that there are very
  few installations, causing investors to
  mistrust CHP investments
• Technical experts ignorance of Central Heating
  and Cooling Plants (CHCP) and HE-CHP systems

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Market outlook

• There have been some major steps the past years
  concerning the clarification of legal
  framework.
• National policy is moving towards the
  development of CHP
• The sectors that will probably show a higher
  degree of development are biomass and biogas
  industry.
• There are discussions on the development of a
  natural gas grid. When this becomes a reality
  then a rise in CHP installations is expected.

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For those interested to comment on the Roadmap
for CHP in Bulgaria

• Are you a policy-maker?
• Are you working in industry?
• Are you from a civil energy society?
• Are you interested in CODE 2 project?
• DONT HESITATE SEND US AN E- MAIL
  hachp_at_hachp.gr AND
• GET INVOLVED!