Presentation delivered by @robertofrancia today at the Hungarian Cogeneration Day

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State of the Art of the Energy Efficiency
Directive and of CHP policy across Europe
Roberto Francia
2 Március, Hajdúszoboszló

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Agenda
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• Introduction
• CHP market update
• EU policy overview
• Conclusions

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About COGEN Europe

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Who we are
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Structure
• European trade association for the promotion of cogeneration
• Established in 1993 and is headquartered in Brussels
• Secretariat of 7 people
We have a vision
• Through the promotion of cogeneration, to grow an industry which changes the
way Europe provides heat and electricity for a sustainable future
Our approach is
• We promote the wider use of cogeneration as part of Europe‘s sustainable
energy strategy
• We participate in the EU legislative process and liaise with key actors in the
European Commission and European Parliament
• We work closely together with other stakeholders
• Relations with Brussels-based and sector media/press (EurActiv, ENDS Europe,
Decentralised Energy, Cogeneration Channel)

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What we do
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• Regular liaison and bilateral discussions with the relevant Commission Directorates-
General and staff, including DG Energy, DG Climate Action, DG Environment, DG
Research and DG Enterprise;
• A network of links with key Members of European Parliament (MEPs) and by following
the work of relevant EP Committees, such as ITRE and ENVI;
• Cooperation and close liaison with other key industry associations (CEPI, CEFIC,
FoodDrinkEurope, CEWEP, FuelsEurope, Cerame-Unie, EuroHeat & Power, EHI),
renewable associations (EREC, AEBIOM, EREF, EUBIA, EGEC) and city representations
(Energy Cities, Covenant of Mayors);
• A set of active internal working groups which formulate and propose COGEN
Europe’s policy on key topics (e.g. on Energy Efficiency Directive, electricity Network
Codes, micro-CHP, bio-energy CHP and on Industrial Emissions Directive);
• European co-funded projects (CODE2, ene.field, PACE);
• Regular events such as our Annual Conference, EP dinner debates and others.

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• Around 50 corporate members, including:
• 14 National COGEN Associations
Kogen
Polska
Our Members

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NEW! Fuel cell mCHP WG (April/May 2016)
NEW! Circular Economy WG (April/May 2016)
COGEN Europe’s Advocacy Work

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CHP market updates

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Installed electrical CHP capacity in EU &
individual country - trends
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Source: COGEN Europe based on available Eurostat data

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Installed CHP capacity by EU country - 2013
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Source: COGEN Europe based on available Eurostat data

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Generated electricity and heat in EU-28
CHP plants (2005-2013)
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Economic potential identified by Member States is 20% share in
total electricity production by 2030 (CODE2, 2015)
Source: COGEN Europe based on available Eurostat data

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CHP generated electricity and share in total
electricity production by country in 2013

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CHP fuel mix in the EU (2005-2013)
CHP fuel mix strongly influenced by fuel price dynamics & support schemes
RES is increasing its share in the CHP fuel mix, reaching 18% in 2013

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CHP fuel mix by country in 2013

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2015 Cogeneration National
Snapshot Survey
…representing 86% of installed capacity in EU28 & Turkey
Expert contributions from 17National Associations…
…capturing the European CHP industry sentiment
Launched every year during COGEN Europe Annual Conference
(this year on 22-23 March, in Brussels)!

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Available support for CHP
in EU28 & Turkey in 2015
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0%
10%
20%
30%
40%
50%
60%
70%
80%
0
1
2
3
4
5
6
7
8
9
10
Tax incentives Feed-in
Premium
Certificates
Scheme
CAPEX
support
Feed-in Tariff Other No support
No. of countries (left axis) % of installed capacity in EU28 & Turkey (right axis)

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Available support for CHP
in EU28 & Turkey in 2015
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The policy framework for
CHP is considered by
most of the experts
surveyed either
insufficient, unfavourable
or not stable enough!
Feed-in
Tariff
Feed-in
Premium
Certificates
Scheme
CAPEX
support
Tax
incentives
Other No
support
Czech
Republic
Denmark
Finland
Flanders
(Belgium)
France
Germany
Greece
Hungary
Italy
Netherlands
Poland
Portugal
Romania
Slovenia
Spain
United
Kingdom

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Policy priorities in 2016

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Energy Union & Juncker’s Commission
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1/11/
2014
• Juncker’s Commission takes office
Q1
2015
• Energy Union strategic framework  Listing 43 “roadmaps”
Q3
2015
• Summer package:
• 2 legislative proposals on Energy Labelling and
• Consultation on electricity market design
Feb.
2016
• Winter package
• Publication of Heating and Cooling Strategy
• Legislative proposals on gas security and infrastructure
2016
• Formal legislative proposals on: ESD, RES, EED, EPBD & Market design
2017-
2018
• Negotiation between Council and Parliament on the new or revised legislations
31/01
/2019
• End of Juncker Commission

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Energy Efficiency Directive
Implementation
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• Deadline for implementation at national level was 31.12.2015
• A number of comprehensive assessments are available on DG
Energy website
• COGEN Europe ready to support members with the
implementation of the EED
• European Commission recently closed the consultation on the
“partial” review of the EED (Art. 1, 7, 9, 20, 24)
• No further information on the assessment of Articles 14 and
15 for to feed into the EED review

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EED implementation at national level
is insufficient
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Adequate implementation of CHP provisions
Insufficient/sluggish implementation of CHP
provisions
CHP provisions not yet or poorly implemented

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Other priority files for COGEN Europe
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Heating and Cooling
Strategy
Strategy released
on 16 Feb
- Puts for the very first
time the heat sector on
the map of EU
policymaking
- Links Heat and Power
sectors
- COGEN Europe is
advocating for a
comprehensive follow-up
to the Strategy
EU ETS (2021-2030)
Legislative Proposal
issued on 15 July
- Linear reduction factor
increase to 2.2%
- 57% of allowances to be
auctioned
- Flexibility elements:
New Entrants Reserve,
New modernisation Fund
(low-income countries),
Carbon leakage list
Electricity Market Design
Proposals expected
in Q4 of 2016
- Facilitate integration of
renewables
- Ensuring security of
electricity supply
- Boosting cross-border
trade
- Possible harmonisation
of distribution tariffs

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• Cogeneration’s role in supporting Europe’s growth, competitiveness and
supply security;
• Opportunities to expand the market for cogeneration in Europe;
• CHP’s role in delivering EU climate and energy policy objectives;
• case Studies putting spotlight on how CHP helps different European
industries;
• Upcoming EU legislation affecting the cogeneration sector; national
market updates.

24. cogeneurope.eu
COGEN Europe • The European Association for the Promotion of Cogeneration
Avenue des Arts 3-4-5, 1210 Brussels, Belgium • T +32 (0)2 772 82 90 F +32 (0)2 772 50 44
info@cogeneurope.eu • www.cogeneurope.eu
Köszönöm!