History and Prospects of Cogeneration and Trigeneration in Energy Supply

1. E N E R G Y S U P P L Y MICRO AND DISTRIBUTED GENERATION AND TRIGENERATION II LONG HISTORY OF COGENERATION IN THE WORLD PAYS OFF Prof. dr. Marija Todorovic DERES - DIVISION FOR ENERGY EFFICIENCY AND RENEWABLE ENERGY SOURCES Faculty of Agriculture, University of Belgrade, Serbia deresmt@EUnet.yu, deres@agrifaculty.bg.ac.yu www.rcub.bg.ac.yu/deres 2006 6th November

2. Its aim is to provide an understanding of how social, political, economical, geographycal and climatic conditions as well as regional resources, living style, science and awarness on environmental issues influence CHP, micro and distributed generation and trigeneration technologies development AIM OF THIS LECTURE

3. PRESENTATION OUTLINE History Eastern and Western Europe Pay-off and Near Future Prospects Monetary and Ecologically Security of energy supply and general social Resources conservation by the energy efficiency improvement and RESutilisation People health and living Contributes to approach sustainability Ethics of Sustainability

4. Policy Local heating/cooling supply policy Benefits for the consumers Use of local fuels Economical benefits Labor cost Productivity International energy and environmental policy National energy Working hours High technology – Development of new products COGENERATION ASPECTS OF

5. 100 YEARS HYSTORY OF COGENERATION AND DISTRICT HEATING IN EUROPE The year 1903 is the birth of DH and CHP year in Russia, when based on prof. Dimitriev and engineer Ginter design constructed Heating System for the Prince Oldenbourg’s children hospital had been connected to the two steam turbines at the local Electricity Station. The other - after revolution place “birth” of CHP /District Heating is Saint Peterbourg 1924 when the first vapour pipeline was opened of the state electrical power plant towards Building 95 near river Fontanka.

6. STAGES OF ENERGY/URBAN DEVELOPMENT WERE CHARACTERIZED AS FOLLOWS: 1903-1917 Study and development of different schemes of DH heating systems 1924-1931 Construction of largerDH systems for heating buildings and industrial facilities/plants 1931-1950 Construction of CHP plants in big industrial centers 1950-1975 Very intensive development of construction industry and spreading of DH systems in cities and industrial centers 1975-1990 Decreasing construction of CHP systems

7. PRODUCED ELECTRICAL ENERGY PER YEAR BY THE CHP SYSTEMS IN FSU 1 - TOTAL; 2 - ELECTRICAL MAIN UTILITIES

8. 2000 Forming a new conception of DH and CHP development changing orientation from the dominant role of central DH/CHP systems to the combination of central powerful and small systems. Study on the CHP based on Nuclear energy had been stopped after Chernobyl accident. Recently has been initiated continuation on the study of the “inherently safe” nuclear CHP systems for the DH of power 300 MW.

9. THE WORLD ENERGY CRISIS 1973 ROLE The world energy crisis 1973 stopped many western countries in their “chaotic” development of energetique, which lead them to numerous homes with autonomous boilers fueledwith oil to supply heat or heated using electrical energy. Based on mainly the Eastern European experience they began conversion to wider utilization of DH and central CHP systems – using locally available energy resources proceeding with adequate state regulative and laws.

10. LARGEST DH/CHP SYSTEMS IN THE WORLD City PJ GWh Heat/Year St.Petersburg 237 66,000 Moscow 150 42,000 Prague 54 15,000 Warsaw 38.2 10,600 Bucharest 36.7 10,197 Seoul 36 10,000 Berlin 33 9,247 Copenhagen 30 8,000 New York City, Stockholm, Helsinki, Hamburg, Paris, Göteborg, Reykjavík, Krakow, Katowice, Gdansk, Tampere, Finland, Indianapolis, Gdynia, Philadelphia, Detroit

11. New Development - Business center of 105.000 m2. CHP - 4 engines of 1,4 MW = 5,6 MW Electrical power and total 6,8 MW Thermal power 3 Gas boilers of 9 MW - total 27 MW 3 Absorption cooling units of 0,67 MW = 2,0 MW Mostransgaz Business Center Moscow

12. Godišnji toplotni konzum MOSTRANSGAZ BCenter HEATING ENERGY USE

13. MOSTRANSGAZ BCenter GAS USE

15. Frederiksbourg 1903

16. SUPPLY SUBSIDY AND DEVELOPMENT OF ENVIRONMENTALLY FRIENDLY FUELS 1950 and 1960 DH supply extended to most of the country's large cities. Oil crises in 1973-74 formulation of the energy policy to reduce the approx. 100% dependency on oil. Energy Research Programme (ERP) in 1976 support energy R&D in EnEff. and decrease the environmental impact of energy production. The law on heat supply took effect in 1979 - 50% of about 700,000 existing DH systems targeted use CHP heat, biomass and DE systems, developing North Sea gas distribution system and preaparing for the CHP. In 1981, the Development Programme for Renewable Energy (DPRE) supplemented RES.

17. CONVERSION TOWARDS CHP - POLITICAL WILL & ETICS The 1986 Agreement on CHP became a major energy policy priority based on the technology of matured small CHP installations driven by natural gas, the political focus on the economic consequences of high energy prices, there was a need for new power capacity. The amendment to the law on heat supply in 1990, a new planning system –“project system” was developed - promoting expansion of decentralized CHP through: - conversion of existing installations to CHP - conversion from coal and oil to natural gas - increased use of environmentally friendly RES. After more than 20 yearsof such support, many environmentally friendly technologies and fuel installations became so technologically and commercially mature that they no longer required subsidizing and in 2002 the Finance Act discontinued the DPRE's subsidy system.

18. DISTRICT HEATING PRODUCTION BY TYPE OF PRODUCER (DK)

19. FINLAND Though over 30% of the electricity generated is CHP-based, it is not the consequence of specific political action, exept governmental support for CHP within well-funded research programme. The reason is more due to an absence of barriers; the fact that CHP is recognised as being the most economic means of generating electricity; that there is a greater acceptance of longer payback periods and; finally, that heating demand is high. One has to keep in mind that almost all CHP is in industry or District Heating. Plentiful availability of wood biomass and extensive use of peat as energy sources.

20. FINLAND

21. EU & GLOBAL BENEFITS OF COGENERATION Increased efficiency of energy conversion and use More decentralised form of electricity generation Improved local and general security of supply More employment - EU formulated in 1997 a strategy to promote CHP with a target of doubling the use of co-generation to 18% of EU electricity production by 2010, avoiding CO2 emissions of more than 65 Mt CO2 per year. Kyoto single biggest challenge Cogeneration is one of the most cost effective solutions in DE generation and one of the major solutions to the undeveloped countries electrification Short term, medium and long term vision and interests affecting the market

22. Current EU CHP SituationPercentage of total electricity generation in 1999 Sources: Eurostat, COGEN Europe, Cogena

24. 1994-1997 1997-1999 Austria 43,6 -15,8 Finland 16,4 6,7 Germany 23,9 6,6 Italy -2,42 24,0 Netherlands -34,9 2,9 Sweden -1,74 0,5 Total 5,5 2,8 CHP electricity production variation

25. …cause weather extremes and damages worth billions of Euros. Source: Münchener Rückversicherungsgesellschaft Climate change

26. CLIMATE CHANGE AFFECTING SOUTHERN EUROPE • The balance of impacts of climate change will be morenegative in southern than in northern Europe - warming of climate is greatest over southern Europe (Spain, Italy, Greece,...) • Severe implications for forest fire occurrence and for human health…, risk of water shortage is projected to increase… • In coastal areas the risk of flooding, erosion and wetland loss will increase substantially with implications for human settlement, industry, tourism, agriculture and coastal natural habitats,...

27. Trigeneration at the heart of Europe – Berlaymont Also the German, Finnish, Danish, Irish and Dutch parliaments

28. EU SEARCHING INSTRUMENTS Deregulation, Re-regulation, Liberalisation and Privatisation Deregulation leads to chaos! All markets need regulation so re-regulation is necessary, from state owned to new structures Privatisation is the ultimate result of liberalisation as state owned companies will struggle in a truly open market Liberalisation is just a process and needs to be framed correctly

29. Liberalisation Allows new entrants, greater transparency, less discrimination on top-up and emergency supplies Uncertainties remain Must be correctly regulated and framed Directive on CHP = progress but compromises... Globally positive, in particular for DH and CHP Needed coordinated policies at the EU and Member State level. Action Plan is essential and urgent at the EU level and National Plans and Strategies need to be developed.

30. CHP - Energy Outlook to 2020 Source: Primes, (Autumn 1999): CHP electricity production, share of total generation

31. Directive draft proposal by the Commission to the Council of EU and to the European Parliament (29th of July 2002) Draft proposal consists of: Explanatory Memorandum (30 pages) Main body of the Directive (18 article and four Annexes) GENERAL INFORMATION

32. PURPOSE The purpose of this Directive is to increase energy efficiency and improve security of supply by creating a framework for promotion and development of high efficiency cogeneration of heat and power based on useful heat demand and primary energy savings in the internal energy market, taking into account the specific national circumstances especially concerning climatic and economic conditions.

33. ANNEXES Electricity grid system and tariff issues Guarantee of origin of electricity from high efficiency cogeneration Cogeneration technologies covered by the DirectiveDefinition of electricity from cogeneration Criteria for analysis of national potentialsfor high-efficiency cogeneration

34. RECENT DEVELOPMENT The Directive published in the OJ of EU in 11/2/04 The MS have two years to implement the Directive into their legal framework A ‘Comitology’, under the supervision of Commission, is working to propose ‘reference values for separate heat and power production’. End of the work: February 2006 The Greek Ministry for Development set up a committee to implement the Directive in the Greek energy legal system. End of the Committee: March 2006

35. EU Cogen Conclusions CHP is the perfect tool for clean decentralised energy services Single largest contributor to cutting CO2 Costs are neutral as well Uncertainties in EU remain but, if set in the right framework, liberalisation will have a positive impact Market potential is huge>30% of electricity supply is ecomonic today

36. HYATT REGENCY AND INTERCONTINETAL HOTEL BELGRADE

37. A guarantee of electricity from high efficiency cogeneration origin shall: 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 finally specify the dates and places of production. specify the quantity of electricity from high efficiency cogeneration that the guarantee represents. specify the primary energy savings calculated based on harmonised reference values established by the Commission.

38. Ann. I: Cogeneration technologies covered by the Directive A. Combined cycle gas turbine with heat recovery B. Steam backpressure turbine C. Steam condensing extraction turbine D. Gas turbine with heat recovery E. Internal combustion engine F. Micro turbines G. Stirling engines H. Fuel cells I. Steam engines J. Organic Ranking cycles Any other type of technology or combination thereof falling under the def. in Article 3 a.

39. ANNEX IV: CRTERIA FOR ANALYSIS OF NATIONAL POTENTIALSFOR HIGH-EFFICIENCY COGENERATION • The analysis of national potentials shall consider • The typeof fuels • The type of cogeneration technologies • The type of separate production of heat and • electricity • A division of the potential into modernisation • of existing capacity and construction of new • capacity.

40. Cogeneration Project Development GuideDeveloping and Implementing Biomass, Clean Coal and Natural Gas Cogeneration Projects in ASEAN

44. GEOTHERMAL ENERGY BIOMASS ENERGY

45. LANDFIELD GAS AND WASTES UTILIZATION

47. Miniaturization - Micro CAT systems Distributed energy systems for intelligent buildings

48. SOLAR ENERGY

49. INEXTRICABLE LINKAGE RES, REM, EnEfficiency and Sustainable Development All level regular and vacational Education,Engineering Experience (Designing, Construction, LCCommisioning and Operation) Most current knowledge and technologies and Mental awarness/Ethics of Sustainability Cost effectiveness/harmonization of - Dynamics of final energy user’s loads - Dynamics of Co/Trigeneration efficiency - Dynamics of technically available RES fluxes Small specific energy fluxes and Distributed character of RES versus Distributed Co/Trigeneration

50. INSTEAD OF CONCLUSIONS Internalisation of a Environmental and Sustainability Costs and benefit values. Taking the environmental benefits into consideration and linking the environmental goals to those of implementing a competitive and efficient market would guide decision makingtowards sustainability. Fundamental difference between decisions and approaches grounded in discretionary pursuit of self-interest, and those based on commitment to sustainability intrinsic standards. Sustainability ethically sanctioned approaches, at each level and in each domain, can help to properly govern the complex nature content of the challenges sustainability is faced with.