| 1 Guido de Wilt DG TREN D4 EUROPEAN POLICY REGARDING MICRO-CHP EUROPEAN COMMISSION

| 2 The Directive for the promotion of high efficiency cogeneration Adoption of Directive 2004/8/EC on 11 February 2004, originally complete transposition in Member States by 21 February 2006 (but delayed because of comitology) It includes harmonised definitions, guarantee of origin, access to the electricity grid, identification and elimination of administrative barriers, possibility of support systems for high efficiency CHP, analysis of the national potential in Member States and statistical requirements.

| 3 Members States obligations Member States provide: national potentials (instead of targets) statistical data progress reports reports on Guarantee of Origin schemes reports on administrative procedures and measures to eliminate barriers notifications on state aid (available for high efficiency CHP only)

| 4 Commission obligations The Commission: does analysis, evaluates reports and notifications reports to Institutions (EP, Council) investigates complaints (important role for industry, consumers, stakeholders) controls if support schemes comply with the criteria for high efficiency cogeneration; only such schemes will be entitled for state aid (in cooperation with DG Competition) develops new initiatives

| 5 Comitology process A study has been launched to help the implementation process (committee procedure) of: Annexes II and III on reference values for energy savings and calculation methodology Annex IV for guidelines for the analysis of the national potential of Member States Time line : November 2004 Kick-off meeting for study First committee meeting Second committee meeting Third committee meeting Fourth committee meeting CHP expert meeting Fifth committee meeting Sixth committee meeting Seventh committee meeting

| 6 Work for the CHP Directive Realised: Official adoption of the harmonised efficiency reference values by the Commission on Publication in the OJ on Development of a common CHP Guarantee of Origin in cooperation with the AIB In progress: Preparations for a seventh committee meeting in June Discussions with Member States and Stakeholders on guidance for decision on reference values detailed guidelines transposition issues reports

| 7 Detailed Guidelines l Need to have guidelines for full implementation of the CHP Directive: u States and explains the main definitions of the directive u Defines the boundaries of CHP units u Tells how to implement annexes II and III u Provides details for the determination of electricity from cogeneration (Annex II) u Provides details for the determination of efficiency of the cogeneration process (Annex III) The “reference values” and the “Guidelines” are fundamental elements for Members States to complete the transposition of the Directive; their adoption is therefore important

| 8 Time line Original indicative time line : CHP statistics to be submitted by MS before 31 December on the year before 21 February The Commission to establish harmonised reference values and detailed guidelines; MS have to apply these 21 August 2006 The Commission requests MS progress reports for August 2006 MS to apply a system of Guarantees of Origin (originally) 21 February 2007 MS report progress of implementation to the Commission 6 August 2007 MS to put in place a system for Guarantees of Origin (real) 21 February 2008 The Commission reviews the application of the Directive 21 August 2010 the Commission requests MS progress reports 1 January 2011 MS apply standard methodology annex II & III 21 February 2011 MS report progress of implementation to the Commission 21 February 2011 The Commission reviews harmonised reference values 21 February 2012 The Commission reviews the application of the Directive 21 February 2015 The Commission reviews harmonised reference values

| 9 CHP in Energy Efficiency Action Plan CHP is included in the EU EEAP: - improved definitions - requirements (micro-CHP, DHC) - standards (micro-CHP, DHC, engineers) - harmonisation of Guarantees of Origin - heat demand suitable for CHP Also attention for the use of waste heat and for quality district heating

| 10 Studies to be launched in 2008 l Harmonised Electronic Guarantees of Origin system for CHP electricity ( ) l Proposal of minimum efficiency requirements for DHC based upon a new EN ( ) l Proposal for minimum efficiency requirements for micro-CHP l CEN mandates for European Standards ( )

| 11 Guarantees of Origin Article 5 of the CHP Directive requires Member States to put in place a scheme for Guarantees of Origin of electricity from high-efficiency CHP (CHP-GO) The CHP-GO will be based on the reference values, officially adopted by the Commission on Schemes for CHP-GO are not necessarily linked to national support schemes for CHP, but this is allowed.

| 12 Micro-CHP: perspective and future (1) CEN Workshop Agreement on grid connection CEN European Norm for micro-CHP appliances Minimum Efficiency Requirement -> CHP-GOs (Eco-design measure? Separate Directive?) Review of Grid access Regulation 1228 (ELEP, DG–GRID studies) Role for Member States, European Heating Industry, Notified Bodies, installers, Energy Agencies, ESCOs, gas industry, regulators, grid operators, consumers, …

| 13 Micro-CHP: perspective and future (2) CHP initiative for Call for proposals in IEE relevant for micro-CHP: practical transposition of the CHP Directive (training, best practice, barriers and procedures, …) grid connection and minimum efficiency support schemes and CHP-GOs training for installers of micro-CHP

| 14 Preparatory Study Tasks for micro-CHP 1. PRODUCT DEFINITION, STANDARDS & LEGISLATION 2. ECONOMICS & MARKET 3. CONSUMER ANALYSIS & LOCAL INFRASTRUCTURE 4. TECHNICAL ANALYSIS EXISTING PRODUCTS & BEST AVAILABLE TECHNOLOGY (previously tasks 4 and 6) 5. DEFINITION OF BASECASE 6. IMPROVEMENT POTENTIAL (prev. task 7) 7. POLICY, IMPACT AND SENSITIVITY ANALYSES (prev. task 8)

| 15 Micro-CHP: perspective and future (4) Now: Study: size and scope (production numbers) for EuP ? Small CHP replacing large heating installations as well? Near future: Voluntary efficiency targets for manufacturers: - CHP Directive (>70%, linked to GOs) - EuP boiler study (76%), EPBD (system/appliance) Voluntary interim measurement methodology (in anticipation of CEN): links with EPBD CEN standard, factor 2.5 for produced electricity, part load or “daily life”…

| 16 Micro-CHP: perspective and future (5) Future (about 3-4 years ?): EuP implementing Measure (stand-alone or adapted boiler IM) or Directive Minimum Efficiency Requirement throughout EU Labelling of micro-CHP as a heating appliance as soon as a harmonised CEN standard is ready Definition of appliance/ “package” as in EuP ? Differentiation between micro and small CHP (as EuP) ?

| 17 Micro-CHP: perspective and future (6) Some principles: Primary Energy Savings compared to current state of the heating market, condensing boilers as the reference Harmonised approach in EU to create a single market for new technologies Building regulations (including insulation) can be used for regional differences Role for notified bodies (consumer protection) Coherence between legislation (labelling, Eco-design, EPBD), action plans (NEEAPs) and support Push for qualified installers to protect the new market

| 18 Staying informed… DG TREN Website