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Cogeneration Observatory and Cogeneration Observatory and Dissemination Europe - CODE2 Dissemination Europe - CODE2

ROADMAP FOR COGENERATIONROADMAP FOR COGENERATION OF HEAT & POWER FOR CYPRUS OF HEAT & POWER FOR CYPRUS

Costas G. TheofylaktosBoD of HACHP-Team Leader

33οο ενεργειακό συμπόσιο ενεργειακό συμπόσιο: : Η συμβολή της Κύπρου Η συμβολή της Κύπρου στη νέα Ευρωπαϊκή ενεργειακή στρατηγικήστη νέα Ευρωπαϊκή ενεργειακή στρατηγική

Nicosia, March 28Nicosia, March 28thth, 2014, 2014

Introduction to CODE2

CODE2 project is jointly funded by the IEE and industry, as it:

• develops the first clear plan of action for CHP in each EU M-S.

• gathers all the interested experts and forms information networks around cogeneration.

• reviews existing published data and presents conclusions.

• introduces in details the new EED and assesses with national stakeholders what the impact will be.

• does the first specifically micro-CHP and bio-energy CHP analysis.

CODE2 mobilises effort in each of the 27 EU M-S for the promotion of Cogeneration of Heat and Power.

Expected results• A further strengthening of the previous CODE Regional Network.• 27 National Cogeneration Roadmaps and one European

Cogeneration Roadmap with concrete proposals for policy improvement, expansion in key industry sectors and awareness raising.

• Identification of micro-CHP and bio-energy CHP potentials• Workshops in pilot countries where draft Roadmaps are

discussed.• Establishment of CHP Coalitions in 27 EU Member States

involving industry, policy-makers and interest groups.• Practical “How-to” guides for key sectors (paper, food, hotels,

SMEs).• Best practice cases on cogeneration in target sectors.

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Project Coordinator: Fiona Riddoch, COGEN Europe, fiona.riddoch@cogeneurope.eu

• Partner responsible for Eastern Europe region: Stane Merše, Jožef Stefan Institute (JSI), stane.merse@ijs.siCountries: Czech, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, Slovenia • Partner responsible for Northern Europe region: Adi Golbach, KWK kommt, adi.golbach@kwkkommt.deCountries: Austria, Denmark, Finland, Germany and Sweden• Partner responsible for North Western region: Joni Rossi, COGEN Vlaanderen, joni.rossi@cogenvlaanderen.be Countries: Belgium, Ireland, Luxembourg, Netherlands and United Kingdom• Partner responsible for South-Eastern Europe region: Costas Theofylaktos, Hellenic Association for the Cogeneration of Heat & Power (HACHP) hachp@hachp.gr Countries: Bulgaria, Cyprus, Greece, Romania • Partner responsible for South-Western Europe region: Giorgio Tagliabue, Federation of the Scientific and Technical Association (FAST), giorgio.tagliabue@gmail.comCountries: France, Italy, Luxembourg, Malta, Portugal, Spain

Partners & contact details

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The Roadmap for CHP for theThe Roadmap for CHP for theRepublic of CyprusRepublic of Cyprus

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General Energy Data for CyprusGeneral Energy Data for Cyprus

Cyprus is characterized by the

lack of natural gas grid. The main

fuels used are oil, coal and biofuels.

Especially for CHP installations the

main fuel used is biogas. According to EUROSTAT, energy

dependence was 92,4% for 2011

much higher than the average of EU-

27 (53,8%). There are no district heating or

cooling installations in the island. The CHP share of total heat

generation reached in 2009 at

0,7%1.

1“Combined heat and power (CHP) (ENER 020) - Assessment published Apr 2012”, European Environment Agency

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2 Eurostat

CHP Share of gross electricity generation2

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3Assessment of national potential for cogeneration in Cyprus (2009)

Potential of CHP electricity capacity3

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4Assessment of national potential for cogeneration in Cyprus (2009)

Potential of CHP thermal capacity4

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Legal framework for CHP in CyprusLegal framework for CHP in Cyprus

• Law on the Promotion of Cogeneration and Heat (2006)

• Modification law of the Promotion of Cogeneration and Heat Law (2012)

• Assessment of national potential for cogeneration in Cyprus (2009)

• Project grants to encourage the use of renewable energy and energy efficiency (2012 - No.2) (sets the amount of subsidies for energy projects)

• 2nd NATIONAL ENERGY EFFICIENCY ACTION PLAN OF CYPRUS (2nd NEEAP)

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Legal frameworkLegal frameworkImportant points in EED 2012/27/EU

• The obligation of a CBA for installations with total thermal input exceeding 20MW

• The development of network tariffs and regulations

• Priority or guaranteed access to the grid of electricity from high-efficiency CHP

• Capability of connection to the grid system of electricity produced from high-efficiency cogeneration from micro-cogeneration units

• Simplification and shortening of authorization procedures

• High-efficiency cogeneration will be encouraged to be sited close to areas of demand by reducing the connection and use-of- system charges

• Provision of incentives for auto-producers to connect to the grid and sell their surplus electricity production

• Specific target establishment

• Annual saving of energy consumed by 1.5% starting at 1/1/2014 till 31/12/2020

• Training and education, including energy advisory programs, that lead to the application of energy- efficient technology or techniques and have the effect of reducing end-use energy consumption

• Mandatory Energy audits

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Support available for CogenerationSupport available for CogenerationCurrent support schemes

• The Energy Authority of Cyprus defines the purchase tariffs for cogenerated electricity which are linked to the fuel price

• There are some subsidies for biomass installations and district heating and cooling using biomass as fuel that reach the 30% of the total investment

Future - proposed support mechanisms5

• Easier connection to the grid and with better economical terms

• Priority during load allocation (there is a 11MWe limit)

• Capital subsidies

• Financial support for HECHP up to 30 MWe

• Better Feed-in-Tariffs prices

• Tax exemption

• Favorable prices should be established for primary fuel used in HE-CHP systems

• VAT exemption for micro HE-CHP units (up to 50 kWe),

• Incentives for the installation of trigeneration in the household and tertiary sector

5Assessment of national potential for cogeneration in Cyprus (2009)

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Potential for CogenerationPotential for Cogeneration

6“EU energy trends to 2030 — UPDATE 2009”, EUROPEAN COMMISSION Directorate-General for Energy in collaboration with Climate Action DG and Mobility and Transport DG

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Potential for CogenerationPotential for Cogeneration

7“EU energy trends to 2030 — UPDATE 2009”, EUROPEAN COMMISSION Directorate-General for Energy in collaboration with Climate Action DG and Mobility and Transport DG

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• Climate conditions

• Complexity connecting to the electricity grid

• Priority to connection with load limits (7 or 11MWe) for CHP plants

• Fuel prices, cost of purchasing fuel, pricing of cogenerated electricity

• CHP System Licensing Procedure

• The Cypriot market’s lack of experienced energy service companies (ESCOs), which could more effectively promote certain CHP applications

• The immature market, given that there are very few installations, causing investors to mistrust CHP investments

• Technical experts’ ignorance of Central Heating and Cooling Plants (CHCP) and HE-CHP systems

Barriers for the promotion of CHP in CyprusBarriers for the promotion of CHP in Cyprus

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Market outlook

• There have been some major steps the past years concerning the clarification of legal framework. • National policy is moving towards the development of CHP• The sectors that will probably show a higher degree of development are biomass and biogas industry. • There are discussions on the development of a natural gas grid. When this becomes a reality then a rise in CHP installations is expected.

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For those interested to For those interested to comment comment on the on the “Roadmap for CHP in Bulgaria”“Roadmap for CHP in Bulgaria”

• Are you a policy-maker? • Are you working in industry? • Are you from a civil energy society?• Are you interested in CODE 2 project?

DON’T HESITATE & SEND US AN E- MAIL: hachp@hachp.gr AND

GET INVOLVED!