Efficient Energy Production with Cogeneration – German Experience, Situation & Prospects

1. Adi Golbach Managing Director B.KWK – The German CHP Association Efficient Energy Production with Cogeneration – German Experience, Situation & Prospects

2. Overview • B.KWK – The German CHP Association • Facts & Figures • Potentials & Problems • Policy & Perspectives • CHP examples in Germany Dublin

3. The B.KWK - The German CHP Association • all kinds of operators • all kinds of technologies • all kinds of fuels • all branches • bundle forces • integrates • provides information • interferes Dublin

4. Overview • B.KWK – The German CHP Association • Facts & Figures • Potentials & Problems • Policy & Perspectives • CHP examples in Germany Dublin

5. The Background Climate Change Ressource scarcity „Always look on the bright side of life.“ Dublin

6. The three bridges to sustainable energy supply 11 t CO2/a x Person Resource usage Higher efficiency  CHP Renewable energy 2 t CO2/a x Person Change in needs Dublin

7. Energy streams in Germany Mt of hard coal equivalents 25% of PEC Source: Arbeitsgemeinschaft Energiebilanzen 2007 Dublin

8. Systemvergleich KWK vs. getrennte Erzeugung Dublin

9. The Difference Power Plant CHP Dublin

10. The German heating market – a system of enormous wasting exergy Conventional heating technology is squandering EXERGY 70 °C heat produced from simply burning gas with 1100 °C squanders more than 80% of exergy Electricity is pure exergy So it‘s better to produce as much electricity as possible from fuels Dublin

11. CHP Fuels in Germany in Plants > 1 MW elt, 2005 Source: Eurostat Dublin

12. CHP in the EU CHP share in electricityproduction 2007 Dublin

13. Overview • B.KWK – The German CHP Association • Facts & Figures • Potentials & Problems • Policy & Perspectives • CHP examples in Germany Dublin

14. CHP Potential in Germany (As of March 31, 2006) economically feasable up to 2020; fiction: no political barriers Dublin

15. Barriers against CHP • Lack of information about chances and technical details (sleeping giant) • Communal or industrial CHP in opposition to the strategic objectives of some big electricity companies • Very ambitious pay-back criteria in industry (< 3 years) • Unstable prospects regarding fuel security and prices Dublin

16. Benefits of CHP • Saves energy resources • Climate protection • Saves money in the medium and long run • Reducing energy dependency • Substitution of energy import expenditures by technical and economical knowledge • Creates new jobs • Higher electric grid stability, higher security of supply • Smart and flexible to operate Dublin

17. Overview • B.KWK – The German CHP Association • Facts & Figures • Potentials & Problems • Policy & Perspectives • CHP examples in Germany Dublin

18. 2007 G8 Summit Declaration • The G8 Summit Declaration (June 2007) highlights cogeneration in the section on Energy Efficiency. • In section 70. Power Generation: „… adopt instruments and measures to significantly increase the share of combined heat and power (CHP) in the generation of electricity", Dublin

19. The German government‘s new energy and climate package from August 2007 Dublin

20. New CHP act 2009 • Target: doubling CHP share in electricity production to 25% in 2020 • Focus on new installations being brought into operation by the end of 2016 • Bonus system again; paid finally by the electricity consumers (max. 0,3 Cent/kWh) • Bonus on electricity fed into the public grid or directly used • > 2 MW elt -> 1,5 ct/kWh over 6 years or max. 30.000h, industry 4 years only • 50 kW to 2 MW -> 2,1 ct/kWh over 6 years or max. 30.000h • ≤ 50 kW -> 5,11 ct/kWh over 10 years • Max. 600 Mil €/a for CHP plants • Max. 150 Mil €/a for district heating investments (20% subsidy if at least 50% CHP heat) • Monitoring in 2011 • Start 1.1.2009 Dublin

21. Renewable Electricity Act 2009 21 Higher Bonus for CHP-electricity (3 ct/kWh) Technology Bonus for innovative CHP technologies Priority for grid-connection of CHP-plants Use of liquid biofuels only if sustainability certificated Practicable conditions for TPA of biomethane Dublin

22. Feed-in-tarifsforelectricityfrombiomass Based on theRenewable Energy Act 2009 Cent/kWh Dublin

23. Renewable Energy Heat Act 2009 23 Obligation to use pro-rata renewable energy (e.g. solar panels, pellets) alternatively use of CHP heat (≥ 50 % produced in CHP) Obligation for new buildings after 1.1.2009 Legitimization of local district heating obligation by reason of climate protection Dublin

24. The governments energy plan • Sept. 2010:  extension of the operating time of nuclear power plants by an average of 16 years Dublin

25. The governments energy plan Nuclear Power Plants in Germany • After Fukushima: • Reviewing the prolongation of the operating time of nuclear power plants • “„Energy turn” towards faster growth of renewable energy and higher efficiency Dublin

26. Energy Turnaround:The government new 6-point program 1. Quickly enhance Renewable energy Core of the energy turnaround is the rapid expansion of renewable energies. The wind energy has the biggest potentials. 2. Quickly develop electricity grids and storages ...to transport electricity from wind power plants in the north to the south. Expansion of flexible power stations and storage, serving to stabilize the power supply.3. Consistently increase Energy efficiencyBy 2020 the heat demand of buildings shall be reduced by 20 percent. Encourage an ambitious renovation.4. Quickly build flexible power plants In future, flexible power plants must offset the increasingly fluctuating power generation from renewable energy sources. Gas power plants have a special role. The construction of highly efficient and flexible power plants will be promoted in accordance with EU requirements. This is limited to operators whose share of the German power generation capacity is up to five percent.5. Reorienting Energy ResearchThe funds for research into networking and storage should be increased to 500 million € by 2020.6. Participation of Citizens People should be fully involved to enable a broad dialogue on the necessity of restructuring the energy supply. Dublin

27. Perspective RE Development in Germany Trends in electricity generation from renewable energies 1991-2030, based on the Lead Study prepared by the DLR Institute for Technical Thermodynamics

28. The energy future will be decentralised Today Tomorrow: distributed/ on-site generation with fully integrated network management (INTELLIGENT GRIDS) cleaner, cheaper and more reliable Dublin

29. The new role of CHP: flexible electricity production complementary to wind and solar energy Dublin

30. Important but neglected: Information & PR Object CHP Industry District heating Economics by efficiency A lot of advantages but lack of awairness Big potentials & chances for many people Dublin

31. WESHALB DIE FERNWÄRME EINE DACHMARKE BRAUCHT! Demo-Kongress 2009

32. Overview • B.KWK – The German CHP Association • Facts & Figures • Policy & Perspectives • CHP examples in Germany Dublin

33. I II / B III / A III / B, neu Plant Operation since 1967 1986 1975 2005 fuel Hard coal Hard coal Natural gas Natural gas Operation up to 2012 2025 2025 > 2030 elektr. capacity 144 MW 102 MW 41 MW 239 MW Therm. capacity 163 MW 139 MW 88 MW 167 MW Elect. production 2006 811 GWh 630 GWh 10 1238 GWh Heat production 2006 23 GWh 86 GWh 8 GWh 618 GWh District heating CHP Stadtwerke Duisburg AG Dublin

34. Industrial CHP, 40 MW el.Chemical industry, Grenzach 34 Dublin

35. Small scale CHP, 225 kW el.public swimming poolSchwäbisch Hall 35 Dublin

36. Micro CHP, 5 kW el.„Dachs“ 12-appartment house 36 Dublin

37. Summary and main results • Energy efficiency is a core element of a sustainable energy strategy • Conventional heat production in boilers is a big waste of exergy • CHP is a core element of an energy efficiency strategy • CHP is being discovered more and more by policy makers • CHP has a large potential - in Germany and anywhere • The Target of doubling CHP in Germany is a big chance for industry and investors • We have to make our choice on the future electricity production path – in fact environment tells us that we don’t have a choice • By using CHP potential and by overcoming barriers against CHP we may learn from each other Dublin

38. Energy Thank you for your attention! Consulting on CHP in Germany adigolbach@gmail.com Dublin 38