Changing the way Europe provides heat and electricity for a sustainable future COGEN EuropeDate: 27/03/2006 Event: HLG on EnergyPage: 1 Why is there not.

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Changing the way Europe provides heat and electricity for a sustainable future COGEN EuropeDate: 27/03/2006 Event: HLG on EnergyPage: 1 Why is there not more Cogeneration? ad hoc group 4 on Energy Efficiency High Level Group on Competitiveness, Energy and the Environment Cogeneration Clean – Clever – Competitive – Compelling Dr Simon Minett, Managing Director, COGEN Europe

Changing the way Europe provides heat and electricity for a sustainable future COGEN EuropeDate: 27/03/2006 Event: HLG on EnergyPage: 2 Source: OECD 1999 Conversion losses from thermal production: Transport losses and energy sector consumption: Own use Power plant: Coal: Oil: Gas: Nuclear: Hydro: Net imports: 23.6 Renewable fuels & waste: Gross Electricity Production: Total primary energy input for electricity production: Net Electricity Production: 2963 Electricity delivered to customers: Industry: Residential: Commerce, Public Services: Other: % total efficiency of the electricity supply system Electricity Generation in European OECD countries (in TWh) Electricity Supply in Europe: Is this sustainable? No longer acceptable! CHP Saves 416 TWh

Changing the way Europe provides heat and electricity for a sustainable future COGEN EuropeDate: 27/03/2006 Event: HLG on EnergyPage: 3 Denmarks Electricity System – 72% Efficient

Changing the way Europe provides heat and electricity for a sustainable future COGEN EuropeDate: 27/03/2006 Event: HLG on EnergyPage: 4 SOLUTIONS Cogeneration is the most efficient energy conversion technique Saves around 280 million tonnes CO 2 EU25 Reduces energy dependence by 1500 PJ/a Modernising existing stock and achieving modest growth will yield the same again

Changing the way Europe provides heat and electricity for a sustainable future COGEN EuropeDate: 27/03/2006 Event: HLG on EnergyPage: 5 Why is there not more Cogeneration? History, Planning, Government Desire, Opposition No restriction on building condensing power Easier not to think about heat Supply – Demand dilemma

Changing the way Europe provides heat and electricity for a sustainable future COGEN EuropeDate: 27/03/2006 Event: HLG on EnergyPage: 6 Investing in the Future

Changing the way Europe provides heat and electricity for a sustainable future COGEN EuropeDate: 27/03/2006 Event: HLG on EnergyPage: 7 What should be done? Rigorous implementation of existing measures, including CHP Directive Make all new investments in the power sector dependent on heat recovery Realise that without cogeneration the task of reducing CO2 is very much harder Integrate Government action/support on bridging the macro-economic gap Incentivise the utilities

Changing the way Europe provides heat and electricity for a sustainable future COGEN EuropeDate: 27/03/2006 Event: HLG on EnergyPage: 8 Power Plant labelling based on marginal electrical efficiencies >80% 70-80% 60-70% 50-60% 40-50% 30-40% <30% E F G B C D A