cogeneurope.eu

State of the Art of the Energy Efficiency

Directive and of CHP policy across Europe

Roberto Francia

2 Március, Hajdúszoboszló

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Agenda

2

• Introduction

• CHP market update

• EU policy overview

• Conclusions

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About COGEN Europe

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Who we are

4

Structure

• European trade association for the promotion of cogeneration

• Established in 1993 and is headquartered in Brussels

• Secretariat of 7 people

We have a vision

• Through the promotion of cogeneration, to grow an industry which changes the

way Europe provides heat and electricity for a sustainable future

Our approach is

• We promote the wider use of cogeneration as part of Europe‘s sustainable

energy strategy

• We participate in the EU legislative process and liaise with key actors in the

European Commission and European Parliament

• We work closely together with other stakeholders

• Relations with Brussels-based and sector media/press (EurActiv, ENDS Europe,

Decentralised Energy, Cogeneration Channel)

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What we do

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• Regular liaison and bilateral discussions with the relevant Commission Directorates-

General and staff, including DG Energy, DG Climate Action, DG Environment, DG

Research and DG Enterprise;

• A network of links with key Members of European Parliament (MEPs) and by following

the work of relevant EP Committees, such as ITRE and ENVI;

• Cooperation and close liaison with other key industry associations (CEPI, CEFIC,

FoodDrinkEurope, CEWEP, FuelsEurope, Cerame-Unie, EuroHeat & Power, EHI),

renewable associations (EREC, AEBIOM, EREF, EUBIA, EGEC) and city representations

(Energy Cities, Covenant of Mayors);

• A set of active internal working groups which formulate and propose COGEN

Europe’s policy on key topics (e.g. on Energy Efficiency Directive, electricity Network

Codes, micro-CHP, bio-energy CHP and on Industrial Emissions Directive);

• European co-funded projects (CODE2, ene.field, PACE);

• Regular events such as our Annual Conference, EP dinner debates and others.

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• Around 50 corporate members, including:

• 14 National COGEN Associations

Kogen

Polska

Our Members

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NEW! Fuel cell mCHP WG (April/May 2016)

NEW! Circular Economy WG (April/May 2016)

COGEN Europe’s Advocacy Work

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CHP market updates

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Installed electrical CHP capacity in EU &

individual country - trends

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Source: COGEN Europe based on available Eurostat data

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Installed CHP capacity by EU country - 2013

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Source: COGEN Europe based on available Eurostat data

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Generated electricity and heat in EU-28

CHP plants (2005-2013)

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Economic potential identified by Member States is 20% share in

total electricity production by 2030 (CODE2, 2015)

Source: COGEN Europe based on available Eurostat data

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CHP generated electricity and share in total

electricity production by country in 2013

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CHP fuel mix in the EU (2005-2013)

CHP fuel mix strongly influenced by fuel price dynamics & support schemes

RES is increasing its share in the CHP fuel mix, reaching 18% in 2013

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CHP fuel mix by country in 2013

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2015 Cogeneration National

Snapshot Survey

…representing 86% of installed capacity in EU28 & Turkey

Expert contributions from 17 National Associations…

…capturing the European CHP industry sentiment

Launched every year during COGEN Europe Annual Conference

(this year on 22-23 March, in Brussels)!

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Available support for CHP in EU28 & Turkey in 2015

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0%

10%

20%

30%

40%

50%

60%

70%

80%

0

1

2

3

4

5

6

7

8

9

10

Tax incentives Feed-in

Premium

Certificates

Scheme

CAPEX

support

Feed-in Tariff Other No support

No. of countries (left axis) % of installed capacity in EU28 & Turkey (right axis)

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Available support for CHP in EU28 & Turkey in 2015

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The policy framework for

CHP is considered by

most of the experts

surveyed either

insufficient, unfavourable

or not stable enough!

Feed-in

Tariff

Feed-in

Premium

Certificates

Scheme

CAPEX

support

Tax

incentives

Other No

support

Czech

Republic

Denmark

Finland

Flanders

(Belgium)

France

Germany

Greece

Hungary

Italy

Netherlands

Poland

Portugal

Romania

Slovenia

Spain

United

Kingdom

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Policy priorities in 2016

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Energy Union & Juncker’s Commission

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1/11/2014

• Juncker’s Commission takes office

Q1 2015

• Energy Union strategic framework Listing 43 “roadmaps”

Q3 2015

• Summer package:

• 2 legislative proposals on Energy Labelling and

• Consultation on electricity market design

Feb. 2016

• Winter package

• Publication of Heating and Cooling Strategy

• Legislative proposals on gas security and infrastructure

2016 • Formal legislative proposals on: ESD, RES, EED, EPBD & Market design

2017-2018

• Negotiation between Council and Parliament on the new or revised legislations

31/01/2019

• End of Juncker Commission

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Energy Efficiency Directive

Implementation

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• Deadline for implementation at national level was 31.12.2015

• A number of comprehensive assessments are available on DG

Energy website

• COGEN Europe ready to support members with the

implementation of the EED

• European Commission recently closed the consultation on the

“partial” review of the EED (Art. 1, 7, 9, 20, 24)

• No further information on the assessment of Articles 14 and

15 for to feed into the EED review

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EED implementation at national level

is insufficient

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Adequate implementation of CHP provisions

Insufficient/sluggish implementation of CHP

provisions

CHP provisions not yet or poorly implemented

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Other priority files for COGEN Europe

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Heating and Cooling Strategy

Strategy released

on 16 Feb

- Puts for the very first time the heat sector on the map of EU policymaking

- Links Heat and Power sectors

- COGEN Europe is advocating for a comprehensive follow-up to the Strategy

EU ETS (2021-2030)

Legislative Proposal issued on 15 July

- Linear reduction factor increase to 2.2%

- 57% of allowances to be auctioned

- Flexibility elements: New Entrants Reserve, New modernisation Fund (low-income countries), Carbon leakage list

Electricity Market Design

Proposals expected

in Q4 of 2016

- Facilitate integration of renewables

- Ensuring security of electricity supply

- Boosting cross-border trade

- Possible harmonisation of distribution tariffs

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• Cogeneration’s role in supporting Europe’s growth, competitiveness and supply security;

• Opportunities to expand the market for cogeneration in Europe;

• CHP’s role in delivering EU climate and energy policy objectives;

• case Studies putting spotlight on how CHP helps different European industries;

• Upcoming EU legislation affecting the cogeneration sector; national market updates.

cogeneurope.eu

COGEN Europe • The European Association for the Promotion of Cogeneration

Avenue des Arts 3-4-5, 1210 Brussels, Belgium • T +32 (0)2 772 82 90 F +32 (0)2 772 50 44

info@cogeneurope.eu • www.cogeneurope.eu

Köszönöm!