Cogeneration

The energy-saving potential of cogeneration is currently under-utilised in the European Union (EU). The purpose of this Directive is to facilitate the installation and operation of electrical cogeneration plants (a technology allowing the production in one process of heat and electricity) in order to save energy and combat climate change.

ACT
Directive 2004/8/EC of the European Parliament and of the Council of 11 February 2004 on the promotion of cogeneration based on a useful heat demand in the internal energy market and amending Directive 92/42/EEC.

SUMMARY
The principle of cogeneration Cogeneration is a technique allowing the production of both heat and electricity. The heat is in the form of high pressure water vapour or hot water. An electricity/heat cogeneration plant operates by means of gas turbines or engines. Natural gas is the form of primary energy most commonly used to fuel cogeneration plants. However, renewable energy sources and waste can also be used. Unlike traditional power stations where exhaust gases are directly evacuated by the chimney, the gases produced by cogeneration are first cooled before being evacuated by the chimney, releasing their energy into a hot water/steam circuit. Electricity/heat cogeneration installations can achieve energy efficiency levels of around 90%. The development of cogeneration could avoid the emission of some 250 million tonnes in 2020. Promotion of cogeneration The objective of this Directive is to establish a transparent common framework to promote and facilitate the installation of cogeneration plants. This overall objective comprises two specific aims: in the short term, the Directive should make it possible to consolidate existing cogeneration installations and promote new plants; in the medium to long term, the Directive should create the necessary framework for high efficiency cogeneration to reduce emissions of CO2 and other substances and to contribute to sustainable development. There are already examples of regulatory developments in some Member States, such as Belgium (green certificates and cogeneration quotas), Spain (a decree on the sale of cogeneration electricity) or Germany (a law on cogeneration).

The Commission has established harmonised efficiency reference values for separate production of electricity and heat (see under Related Acts) and will review these harmonised values for the first time on 21 February 2011, and every four years thereafter, to take account of technological developments and changes in the distribution of energy sources. Member States must ensure, on the basis of the harmonised efficiency reference values and within six months of their adoption, that the origin of electricity produced from highefficiency cogeneration can be guaranteed according to objective, transparent and nondiscriminatory criteria laid down by each Member State. Member States must ensure that the guarantee of origin of the electricity enables producers to demonstrate that the electricity they sell is produced from high-efficiency cogeneration. A guarantee of origin must: specify the lower calorific value of the fuel source from which the electricity was produced, specify the use of the heat generated together with the electricity and the dates and places of production; specify the quantity of electricity from high-efficiency cogeneration that the guarantee represents (this quantity being calculated in accordance with Annex II); specify the primary energy savings calculated in accordance with Annex III based on harmonised efficiency reference values established by the Commission. Member States must analyse the national potential for the application of high-efficiency cogeneration. Following a request by the Commission at least six months before the due date, Member States must evaluate progress towards increasing the share of highefficiency cogeneration every four years, as from 21 February 2007. Member States or the competent bodies designated by the Member States must evaluate the existing legislative and regulatory framework with regard to authorisation procedures. Such evaluation is carried out with a view to: encouraging the design of cogeneration units to match economically justifiable demands for useful heat output and avoiding production of more heat than is useful; reducing the regulatory and non-regulatory barriers to an increase in cogeneration; streamlining and expediting procedures at the appropriate administrative level and ensuring that the rules are objective, transparent and non-discriminatory. The Commission shall be assisted by a committee. Background Cogeneration saves energy and improves security of supply. However, there is still considerable unexploited potential for cogeneration in the Member States. Moreover cogeneration would make it possible to:

reduces losses on the electrical grid because cogeneration installations are usually closer to the consumption point; increase competition among electricity producers; set up new enterprises; save energy in isolated or extremely remote areas.

REFERENCES

Act Directive 2004/8/EC Amending act Regulation (EC) No 219/2009

Entry into force 21.2.2004 Entry into force 20.4.2009

Deadline for transpo Member St

21.2.200

Deadline for transpo Member St -

Successive amendments and corrections to Directive 2004/8/EC have been incorporated into the basic text. This consolidated version is for information only.

RELATED ACTS
Communication Communication from the Commission to the European Parliament and the Council Europe can save more energy by combined heat and power generation [COM(2008) 771 final Not published in the Official Journal officiel]. The European Commission reports on the application of Directive 2004/8/EC in the Member States. 22 Member States have partially transposed the Directive and published reports on their cogeneration potential, and on the administrative changes that have been implemented. 11 Member States have communicated an analysis of their national potential. The Commission underlines the obstacles impeding the development of cogeneration and states that further efforts are still required. It therefore invites Member States to apply the Directive as a matter of urgency. Infringement procedures could be implemented if this is not the case. Decisions Commission Decision 2007/74/EC of 21 December 2006 establishing harmonised efficiency reference values for separate production of electricity and heat in application of Directive 2004/8/EC of the European Parliament and of the Council [Official Journal L 32, 6 February 2007]. Commission Decision 2008/952/EC of 19 November 2008, establishing detailed guidelines for the implementation and application of Annexe II to Directive

2004/8/EC of the European Parliament and of the Council [Official Journal L 338 of 17 December 2008]. Directives Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings [Official Journal L 153 of 18.6.2010]. Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market [Official Journal L 283 of 27.10.2001]. See consolidated version Council Directive 92/42/EEC of 21 May 1992 on efficiency requirements for new hot-water boilers fired with liquid or gaseous fuels [Official Journal L 167 of 22.6.1992]. See consolidated version

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Co-generation in India. A misnomer

Cogeneration in India, being a tropical country with power shortfall, means often something else than in Germany. Here cogeneration in particular in the context of sugar mills means the generation of excess power to be sold to an external customer and wheeled through the public grid. All what you have to do, is to junk the old boiler and low pressure steam turbine and replace it by a high temperature and pressure system. I call this a simple energy efficiency measure and not introducing cogeneration. Cogeneration as understood elsewhere means Combined Heat and Power generation. In other words it generates with one integrated system both, power and process heat. Such plants achieve system efficiencies of 80% - 85%. This means at least 80% of fuel energy supplied to the plant is utilized (i.e. useful energy output). Compare this with conventional power plant efficiencies of at most 40%. Presently the MoP has issued guidelines for the States concerning cogeneration. Some States give preferential tariffs for such cogeneration = combined heat and power plants. As always investors find loopholes in such rules and regulations, meaning they gladly take the special tariffs, but may not really operate a combined heat and power plant. We have picked the directives of a State Electricity Regulatory Commission (SERC) for our 2,700 odd subscribers and like to discuss on this example, the difficulties to define and monitor cogeneration. All readers are encouraged to read, understand and analyse this directive, and appreciate the complexity or simplicity. It is not an easy task. We are looking for comments about the best way to define a cogeneration system, not only for sugar mills, and suggest ways to verify in the field its operational efficiency. Remember the bottom line useful energy output = energy input (kWh) System efficiency is

electrical energy (kWh) + 1/2 process heat (kWh) = energy input (kWh) For those, who protest the notion of kWh for process heat, remember 3.6 MJ = 1 kWh. The energy content of a fuel or steam may therefore be as well expressed in kWh based on the international SI system. If uncomfortable, you may also express all energy input and output in MJ or kcal. But mixing of units should be avoided in this equation. The objective is to make the system efficiency as large as possible for a given fuel energy input. One may of course as well further utilize some remaining heat in the stack gas of the boiler to improve on the system efficiency even more. Be aware that useful energy should apply to what the system delivers. It would be unfair to penalize a cogeneration plant for wasteful transport and utilization of the process heat it provides. As an example take a district heating cum power plant in Mongolia, where the steam is transported above ground in uninsulated pipes at -20 0 C in the winter! There may be not too much useful heat arriving at a dwelling for space heating, but anyway it is called a cogeneration plant

Co-generation
Co-generation is the concept of producing two forms of energy
from one fuel. One of the forms of energy must always be heat and the other may be electricity or mechanical energy. In a conventional power plant, fuel is burnt in a boiler to generate high-pressure steam. This steam is used to drive a turbine, which in turn drives an alternator through a steam turbine to produce

electric power. The exhaust steam is generally condensed to water which goes back to the boiler. As the low-pressure steam has a large quantum of heat which is lost in the process of condensing, the efficiency of conventional power plants is only around 35%. In a cogeneration plant, very high efficiency levels, in the range of 75%90%, can be reached. This is so, because the low-pressure exhaust steam coming out of the turbine is not condensed, but used for heating purposes in factories or houses. Since co-generation can meet both power and heat needs, it has other advantages as well in the form of significant cost savings for the plant and reduction in emissions of pollutants due to reduced fuel consumption. Even at conservative estimates, the potential of power generation from co-generation in India is more than 20,000 MW. Since India is the largest producer of sugar in the world, bagasse-based cogeneration is being promoted. The potential for cogeneration thus lies in facilities with joint requirement of heat and electricity, primarily sugar and rice mills, distilleries, petrochemical sector and industries such as fertilizers, steel, chemical, cement, pulp and paper, and aluminum.