National Allocation Plans and Cogeneration Dr Simon Minett, Managing Director, COGEN Europe Emissions Trading and Cogeneration, Milanoenergia 2005, 5 October.

Slides:



Advertisements
Similar presentations
DG Energy and Transport, European Commission Fabrizio Barbaso 17/04/2008 EU RENEWABLE ENERGY PROPOSALS ARF Energy Security Seminar EUROPEAN COMMISSION.
Advertisements

WTO Compatibility of «Green Border Taxes» Dr. Joëlle de Sépibus World Trade Institute, Bern.
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.
European Commission: 1 Air emissions from ships – and overview of European policy Progress amending EC sulphur in fuel directive to include MARPOL Annex.
EU efforts towards Kyoto Marianne Wenning DG ENV, Climate Change unit 28 November 2002.
A 2030 framework for climate and energy policies Energy.
Changing the way Europe provides heat and electricity for a sustainable future COGEN Europe Date: 30 May Page: 1 Gas Industry Micro.
Olje- og energidepartementetwww.oed.dep.no The energy sector and policy challanges in Europe. Viewpoints from Norway Johan Vetlesen Deputy Director General.
The EU Emissions Trading System (ETS) Rationale and Lessons learnt Artur Runge-Metzger Head of International Climate Negotiations, European Commission.
Sustainable Energy Roundtable Series January, 2005 Pfizer Greenhouse Gas Management Program Experience.
1 Justin Wilkes Public Affairs Advisor European Wind Energy Association RESTMAC workshop Warsaw 11 October 2007 Achieving the 180 GW of wind power in Europe.
1 Decarbonsing the European Power Sector: is there a role for the EU ETS? Brussels, 31 May 2011 Jos Delbeke DG Climate Action European Commission.
The 2030 Framework for Climate and Energy Sustainable Development or Expensive Dreams? PRESENTATION by Michael STEURER Warsaw, 15 October 2014.
EU Energy Strategy
Ad Hoc Working Group on Article 3.9 of the Kyoto Protocol Battling global climate change - the EU’s perspective (Part II) Artur Runge-Metzger European.
Interrelations between Environmental Fiscal Reform and Emissions Trading schemes : Lessons from Hungary* Pendo Maro European Environmental Bureau (EEB)
EREF - European Renewable Energy Federation Sustainable Energy for Europe - INFORSE-Europe Seminar, Brussels - André Vieira Pinheiro – Brüssel November.
Introduction to Climate Change: - global warming - basis steps in a clean development project - connection of CDM with European Trading Scheme Wim Maaskant.
Climate Change Related Activities in Romania Dumitra MEREUTA Ministry of Environment and Sustainable Development - June 2007, Bucharest -
Market Mechanisms to Curb Greenhouse Gases: Challenges and Future Directions Joe Kruger February 20, 2007 Joe Kruger February 20, 2007.
1 5.2 Low-energy strategies for the European Union Katharina Koch Manuela Steiner Barbara Unterrainer.
The Design and Philosophy of the RES Directive Hans van Steen - Head of Unit European Commission, DG TREN D1 European Forum For Renewable Energy Sources.
The implementation status of specific mechanisms under Kyoto Protocol EU-ETS 13 May 2013 Geta Diaconu.
EU Legislation for Geothermal Energy Luca Angelino European Geothermal Energy Council 8 TH LGA CONFERENCE, V ILNIUS, 23 M ARCH 2012.
1 1 CURRENT ENERGY POLICY CHALLENGES. THE 2030 ENERGY AND CLIMATE FRAMEWORK DG Energy, European Commission.
© OECD/IEA 2010 Energy Policies of the Czech Republic 2010 In-depth Review Energy Policies of the Czech Republic 2010 In-depth Review Prague, 7 October.
1 ELECTRICITY PRICES AND RENEWABLE ENERGY Lucia Passamonti Strategy, Research and Documentation Dept. Italian Regulatory Authority for Electricity and.
EU Climate Action EU – Central Asia Working Group on
1 Flooding in Europe Reference : PESETA. 2 Impacts in European coastal areas Impacts in European coastal areas Impact of adaptation Impact of adaptation.
Latest on Bioenergy in the EU Emissions Trading System and in the CDM Latest on Bioenergy in the EU Emissions Trading System and in the CDM B. Schlamadinger.
1 EU Emissions Trading Scheme – New System to allocate free Allowances from 2013 onwards IFIEC Energy Forum Brussels, 9 June 2011 Hans Bergman DG Climate.
Directorate General for Energy and Transport Euroforenet Conference 20/11/2007 Brussels European Commission Kyriakos MANIATIS Biofuels & Industry DG TREN.
European Commission Next Steps Post-Kyoto: U.S. Options The EU Experience Sustainable Energy Institute Washington D.C, March 30, 2005 Robert Donkers, Environment.
A worked example for Denmark using the proposed EU Directive rules Senior Adviser Peter Bach Danish Energy Authority EU and eceee expert seminar on measurement.
Biofuels – EU policy context Funding and Legislation Workshops Glasgow, 26 May 2011 Francesca Giannini Scotland Europa.
UK experience of and plans for reducing emissions of greenhouse gases
Key drivers for industrial performance Herbert Aichinger European Commission DG Environment Directorate G Sustainable development and Integration Unit.
EU 2030 climate and energy update. Climate Action Network Europe over 120 member organisations in more than 25 European countries.
Energy Agency of the Republic of Serbia
Anni Podimata MEP Member, Committee on Industry, Research and Energy 8th Inter-Parliamentary Meeting on Renewable Energy and Energy Efficiency Budapest,
European Commission DG TREN / C: Conventional Energy Greenhouse gas mitigation and energy policy, a European perspective Presentation by Cristóbal.
Directorate General for Energy and Transport European Commission Directorate General for Energy and Transport Regulation of electricity markets in the.
Legal developments in the Polish Power Sector Arkadiusz Krasnodębski.
EU Climate Change Policy Necessary Review of EU ETS Annette Loske IFIEC Energy Forum 23 February 2006 IFIEC EUROPE – International Federation of Industrial.
Climate and Energy Package Open Days 2008 Workshop “ Climate change and the role of regions“ 7 October 2008 Martin Weiss European Commission DG ENV, unit.
European Commission: Environment Directorate General Slide: 1 The EU perspective on Climate Change BIICL October 2008 Dr. Nicola Notaro, Team Leader International.
Promotion of an ICT dialogue between Europe and Latin America Horizon 2020 Dr. Margaretha Mazura, EMF Project Angels Webinar, 13 December 2012.
IFIEC Europe International Federation of Industrial Energy Consumers 1 Promotion of Renewable Energies in the EU Member States Consequences on the Price.
Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE ANRE ROMANIAN ENERGY REGULATORY AUTHORITY.
Limiting Global Climate Change to 2 °Celsius The way ahead for 2020 and beyond Jos Delbeke DG ENV Director Climate Change & Air Energy for a changing world.
January 20, 2006Rod Janssen EC Green Paper on Energy Efficiency Rod Janssen Energy Consultant.
Climate Action Meeting the EU’s Kyoto commitments & Avoiding a gap after 2012 Doha, 27 November 2012 Paolo CARIDI Policy Coordinator DG Climate Action.
The European Union Climate Policy and Related Data Needs Velina Pendolovska European Commission, DG Climate Action Meeting on Climate Change Related Statistics.
Energy Management and Planning MSJ0210 Energy planning Eduard Latõšov.
Climate Change October Main concepts Climate change – lasting change of some or all characteristics, describing the average weather condition Greenhouse.
European Environment Agency ‘Trends and projections in Europe’ – Tracking progress towards Europe’s climate and energy targets for 2020 François Dejean.
Implementation of the CHP Directive - overview and outlook Talking competitiveness! New perspectives for CHP/DHC EHP Annual Conference Brussels
Land Use, Land Use Change and Forestry (LULUCF) European Commission expert group on forest fires Antalya, 26 April 2012 Ernst Schulte, DG ENV on behalf.
The EU ETS and the Modernisation Fund: European Power sector’s perspective Krzysztof Laskowski Climate Policy Advisor, EURELECTRIC Brussels, 4 May 2016.
Heat Plan Denmark Low Carbon Urban Heating Anders Dyrelund, market manager Rambøll Denmark.
Budapest, September 28-29, 2004 RES – E market developement in Poland.
Climate Action Climate and Energy: EU perspective Madrid, Universidad Pontificia Comillas 18 May 2015 Jos DELBEKE Director General for Climate Action European.
ALBANIAN CHAIRMANSHIP
Karl Vella - EURELECTRIC
EU’s CO2 Emissions Trading Scheme – Benchmarks for Free Allocation from 2013 Onwards 9 September 2010 Hans Bergman DG Climate Action European Commission.
The European Climate Change Programme
STATE ENERGY AND WATER REGULATORY COMMISSION
Ефикасно коришћење енергије у металургији-IPPC
Determined to reach the target: the EC’s progress
EU plan: Supporting directives • The EU Renewable Energy Directive was adopted at the end of 2008 • EU Renewable Energy Directive.
Presentation transcript:

National Allocation Plans and Cogeneration Dr Simon Minett, Managing Director, COGEN Europe Emissions Trading and Cogeneration, Milanoenergia 2005, 5 October 2005 Cogeneration Clean, Clever, Competitive

About COGEN Europe Principles of the emissions trading scheme NAP 1 (2005 – 2007) NAP 2 (2008 – 2012) NAP 3 (2012 – 2016) The treatment of cogeneration in NAPs CHP Directive Final remarks

COGEN Europe European Trade Association for the Promotion of Cogeneration Representing the cogeneration sector Setting the agenda Resource and information source for policy makers Vision COGEN Europe working towards the wider use of cogeneration in Europe for a sustainable energy future Structure National Members –National Promotional Organisations - 21 Company Members –Gas and Electricity Utilities –Equipment Manufacturers and Suppliers –Consultancies –Banks, Insurance and End Users

About COGEN Europe Secretariat with seven staff members based in Brussels One focus on studies and information campaigns Advocates the interests of the CHP sector Working group on emissions trading looks at NAPs and cogeneration Key to cogeneration’s success is the CHP Directive (will set the references and thus the allocation too)

Four Important Directives PreparationTranspositionIn force in MS Cogeneration Directive Energy Services Directive Energy performance of buildings Directive Emissions Trading Directive

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

About COGEN Europe Principles of the emissions trading scheme NAP 1 (2005 – 2007) NAP 2 (2008 – 2012) NAP 3 (2012 – 2016) The treatment of cogeneration in NAPs CHP Directive Final remarks

Principles of the ETS Covering 12,000 installations, the European emissions trading scheme (ETS) is the largest of its kind in the world The ETS gives emissions reductions a value and extra emissions a cost The ETS is the main European policy instrument for fulfilling its Kyoto obligations The ETS is designed to promote low-carbon technologies such as cogeneration (IN PRINCIPLE!)

About COGEN Europe Principles of the emissions trading scheme NAP 1 (2005 – 2007) NAP 2 (2008 – 2012) NAP 3 (2012 – 2016) The treatment of cogeneration in NAPs CHP Directive Final remarks

NAP 1 (2005 – 2007) The first trading period is in effect since 1 January 2005 All 25 national allocation plans (NAP) are accepted by the European Commission No harmonisation across EU25 Due to the Commission scrutiny the amount of total emissions allowances has been cut by 290 million For the NAP 1 period, there are 2.2 billion allowances issued per year

NAP 1 (2005 – 2007) DISTRIBUTION OF ALLOWANCES ACROSS EU-25

The “Electricity Price Effect” Effect of CO2 cost on marginal electricity production cost Based on efficiency ratings of 36% and 50% net HHV efficiency respectively. Source: ICF Consulting cogen

Carbon Price Effect

NAP 1 (2005 – 2007) ELECTRICITY PRICE AND THE MERIT ORDER PRINCIPLE

About COGEN Europe Principles of the emissions trading scheme NAP 1 (2005 – 2007) NAP 2 (2008 – 2012) NAP 3 (2012 – 2016) The treatment of cogeneration in NAPs CHP Directive Final remarks

NAP 2 (2008 – 2012) Time frame synchronised with the first Kyoto commitment period European legal basis for NAP 2 equal to NAP 1, as quick amendment of the ETS Directive impossible Individual Member States are free to change national allocation methods European Commission discusses inclusion of aviation sector in the middle of NAP 2

NAP 2 (2008 – 2012) Accession of Bulgaria and Romania Bilateral discussions with Canada, Norway and others TIMING ENLARGEMENT By 01/07/06: Decision on total number of allowances by each Member State By 01/10/06: European Commission approves/rejects these numbers By 01/01/07: Members States publish allocation to individual installations

About COGEN Europe Principles of the emissions trading scheme NAP 1 (2005 – 2007) NAP 2 (2008 – 2012) NAP 3 (2012 – 2016) The treatment of cogeneration in NAPs CHP Directive Final remarks

NAP 3 (2012 – 2016) To run from January 2012 to December 2016 European Commission will “if appropriate” propose changes to the European legislation in summer 2006 Currently, the Commission carries out a review on the ETS Emphasis on: –Stable baseline years –Longer allocation periods –Deriving future allocation from past allocation –Expansion to further sectors and gases

NAP 3 (2012 – 2016) FOCUS OF COGEN Europe Level of harmonisation of allocation methods Level of harmonisation of CHP treatment Role and design of auctioning Favourable treatment for “new entrants” Definition of combustion installations Role of flexible mechanisms (JI/CDM) Role of other sectors and gases

About COGEN Europe Principles of the emissions trading scheme NAP 1 (2005 – 2007) NAP 2 (2008 – 2012) NAP 3 (2012 – 2016) The treatment of cogeneration in NAPs CHP Directive Final remarks

The treatment of cogeneration in NAPS COGEN Europe is the only organisation carrying out a European-wide best practice review Working Group on emission trading deals with this matter Today (5 October 2005), meeting with the European Commission Final results expected by the end of 2005 Focus on ten biggest EU countries, which represent more then 80% of allocated allowance

The treatment of cogeneration in NAPS Art. 11(2) or the Austrian emissions trading law foresees: “The allocation takes the climate-friendly effects of efficient cogeneration and efficient district heating into account, as well as the promotion of these technologies as foreseen in the framework of climate change policies” The so-called “CHP premium” halves the sector- specific CO 2 reduction requirements for cogeneration plants THE EXAMPLE OF AUSTRIA (1. part)

The treatment of cogeneration in NAPS Allocation basis x specific factor without CHP premium = number of allowances THE EXAMPLE OF AUSTRIA (2. part) 10,000 t CO 2 x 0.94* = 9,400 allowances Allocation basis x specific factor with CHP premium = number of allowances 10,000 t CO 2 x 0.97* = 9,700 allowances * equals 6% reduction obligation for the sector

About COGEN Europe Principles of the emissions trading scheme NAP 1 (2005 – 2007) NAP 2 (2008 – 2012) NAP 3 (2012 – 2016) The treatment of cogeneration in NAPs CHP Directive Final remarks

Cogeneration Directive Background Adopted in February 2004 Implementation deadline February 2006 Article 1: “Creating a framework for promotion and development of high efficiency cogeneration” Member States must report by February 2007 their progress towards increasing the share of high efficiency cogeneration European Commission can by February 2008 propose new measures, “if appropriate” Informal EU target of 18% of electricity from cogeneration by 2010 (currently 11%)

Cogeneration Directive Definition of high efficiency cogeneration All CHP plants up to 1MWe, which provide any primary energy savings (PES) Larger plants, which provide PES of at least 10% PES is normally calculated for each individual CHP plant with following formula Other PES calculation formula possible

Primary energy savings Ref.Boiler Y% Ref. Elect. X% cogen installation = Z 48 = Savings > 10% Comparison of energy consumption for cogeneration and for separate production of electricity and heat

Primary energy savings Ref.Boiler 85% Ref. Elect. 51% cogen installation = = Savings = = 25 = 20% Comparison of energy consumption for cogeneration and for separate production of electricity and heat 32 = 35 – 3 (including grid losses)

CHP Directive Conclusions Next months are very important References are too strict = No new CHP and at least 50% reduction of existing CHP Get references right = stimulation of CHP, quality assurance and new state aid possible COGEN Europe needs your help!

About COGEN Europe Principles of the emissions trading scheme NAP 1 (2005 – 2007) NAP 2 (2008 – 2012) NAP 3 (2012 – 2016) The treatment of cogeneration in NAPs CHP Directive Final remarks

The Working Group on emissions trading is open to all COGEN Europe members Permanent representation of an Italian member not secured yet Italy ranks second (number of installations) respectively fourth (number of allowances) in the ETS If you want to present your concerns to the Commission, please contact the Working Group co-ordinator:

Thank you for your attention!