PowerPoint-presentatie

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The Dutch CHP/DH sector in the battle between
Economy, Environment and Security of Supply in
the liberalized market
drs. ing. Teus van Eck Helsinki, 17 june
2003, EHP Annual Conference
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Contents

• Market situation
• Economy
• Environment
• Security of supply
• Regulation
• Recommendations

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Market situation
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The actual situation
DGOs
Producers
Grid Operators
Traders
Government
Consumers
Regulators
CHP / DH
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The Balance
Environment Security of supply
Economy
The long en short term values???
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Reality T.V.
Low prices High earnings Low risks Market power
The future of our children
Politicians
Free market
Environment
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Dream vs. Reality

• Dream No coal, no nuclear and efficient gas CHP
  in the transition period to 100 sustainability.
• Reality Growing demand, gas CHP nearly in
  bankruptcy and only 2 of total production is
  renewables.
• Prosperity-welfare?

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Economy
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(No Transcript)
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Fuel Costs for different Power Units
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Consequences

• Gas CHP too expensive in night and weekend.
• Environment is not an item.
• Bad investment climate for CHP.

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Environment
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Priorities?

• Only promoting Renewables vs. the lowest level of
  fossil fuel consumption and emissions for the
  total energy demand?
• Energy savings vs. the fossil fuel use/emission
  level per unit electricity/heat?
• Clear physical CHP electricity definition vs.
  lowest level of fossil fuel consumption

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The environmental ranking
Renewables Good gas CHP Stegs Bad gas CHP Good
coal CHP Modern coal units Bad coal CHP
Quality
Ranking on base of operational results and not
on design efficiency
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Heat Distribution
E
E
E
E
F
CHP
Storage
H
Alternative Consumer
F
Grid
Consumer
H
F
Back-up/peak
E Electricity F Fuel H Heat
H
Energy savings for the total chain between 90
and 40
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Some figures

• 100 km by car 15 kg CO2
• 1 Dutch family with DH saves 1500 kg CO2/yr
• 1 Windmill of 1 MW saves 700 ton CO2/yr
• 1 MWth CHP saves 700 ton CO2/yr

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Security of supply

• Technical, availability fuels, the environment
• Separate electricity production results in
• 45-75 waste heat
• Political risks
• Distributed vs. centralized generation

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Regulation
Traders/producers
E.U. directive CO2 trading
Regulator
E.U. directive CHP
Consumer Organisations
CHP / DH
Fuel markets
Local Governments
DGOs
National support
Convenants between government/market parties
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Opportunities-Risks

• Opportunities Energy/emissions savings, security
  of supply, proven technology
• Risks Continuity of heat demand and or heat
  source, economy of scale, weak and uncertain
  position in electricity and fuel market, level
  playing field? no structural financial valuation
  of environmental aspects

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Recommendation
CHP smile for the environment
Power of the market

• Translate our smile in market power.
• Result a structural, payable big smile.