The Quality of CHP

Speaker : Mr Johann J. Hof, Energiened (NL), Chairman of the Study Committee for Ecology, Euroheat & Power.

To introduce the debate Hans Hof, chairman of EHP’s ecology working group, presented the results of an extensive study which underpins the significant contribution the CHP/DHC sector can make to achieve the European Union’s climate change objectives. The detailed calculations show that if the EU’s target of an 18% CHP share of electricity generation (548 TWh of 3,047 TWhe) is met by 2010, the European Union can save up to 194.3 Mt CO2 per year in addition to the savings delivered by CHP plants which were already existing in 1997. This corresponds to about 57.8 % of the EU Kyoto target.

The study provides a consistent methodology based on a coherent set of data for calculating the amount of CO2 emissions that can be avoided if the formulated EU target of a 18% CHP share in electricity generation is met. The computer model developed for calculation makes it possible to take into account new developments and data, aiming to contribute to a widely agreed quantification of the CO2 savings achievable by expanding CHP in the EU.

During the debate it was largely admitted that only “real” CHP brings about “real” CO2 savings. A special chapter of the CO2 report is therefore dedicated to the definition of CHP and highlights the need for the introduction of a technically correct European standard. Several participants underlined that under current market conditions the 18% EU target as such is ambitious and cannot be reached without an active CHP policy. It was underlined that in order to take advantage of the potential benefits of the technology in order to implement climate policy objectives, a reliable framework is needed which makes sure that fuel and CO2 savings will be rewarded.

The Commission is considering the possibilities of a CHP Directive, covering issues such as the definition of quality CHP, rules on grid connection, the definition of national targets and defining the role of local agencies in increasing the CHP potential. The Belgian Presidency recalled that one of the main priorities of the EU is the implementation of the Kyoto Protocol by achieving progress in energy efficiency. This political momentum should be used for encouraging CHP in the accession candidate countries as well. Measures such as energy taxation and emission trading should have a favourable impact on the development of the technology.