COGEN Europe presented its functioning and the current state of the cogeneration sector in Europe at COGEN Hungary's Annual conference

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COGEN EUROPE
Delivering Sustainable Heat and Electricity in Europe
COGEN Hungary - Annual Conference
Balatonfured, Hungary
21-22 March 2018

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Content
2
1. About COGEN Europe
2. COGEN Europe Membership
3. Working with the Members
4. Cogeneration in Europe (Today and Tomorrow)

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1. About COGEN Europe

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Who We Are
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COGEN Europe…
…is the European Association representing the cogeneration sector.
…aims at promoting the benefits and wider use of cogeneration in Europe.
…works together with EU Institutions, Member States and other stakeholders to
develop sustainable energy policies.
…is a membership based organisation with over 50 members (13 national associations
and over 40 organisations).
...was established in 1993 as a not-for-profit organisation under Belgian law.
…is based in Brussels.
…has a Secretariat of 7 people.
COGEN Europe’s Vision
“Through the promotion of cogeneration,
to grow an industry which changes the
way Europe provides heat and electricity
for a sustainable future”

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Our National Members
(representing over 70% of
CHP capacity in Europe)
Our Corporate Members
(covering the entire
energy value chain)
Our Members

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2. COGEN Europe Membership

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Membership Categories
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Executive Member: open to companies with significant interests in the CHP
sector and who wish to actively participate in the EU policy development
process in Brussels. Includes participation at Executive Committee level.
Full Member: includes significant support from the COGEN Europe secretariat
and opportunities to raise company profile in Brussels through engagement in
EU affairs. Includes participation at Executive Committee level.
Member: participation in working groups, networking through COGEN Europe
events, and regular updates on EU developments are the main interactions.
Small Company Member: category of membership aimed at small companies
with less than 50 employees, which are involved in the CHP sector.
National Member: category for national cogeneration associations.

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3. Working with the Members

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How we Shape Policy
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Public Affairs
Consultations and meetings in Brussels with EU Institutions and relevant
stakeholders to present point of view of cogeneration sector.
Targeted Public Affairs campaigns.
Active involvement in Brussels stakeholder platforms such as the European Energy
Forum, IDEAS, EEFIG, Decarb Europe, Brussels Electricity Club.
Projects
Managing EU co-funded projects to support further
advancement and deployment of cogeneration
technologies and solutions.
Information Dissemination
Sharing the latest cogeneration policy and Europe-wide market developments with
our members.
Promotion of our positions and activities via relevant specialised media
(Decentralised Energy, Cogeneration Channel) and social media.

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Main EU Policy Files for 2017-2018
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Electricity Market Design (review)
Energy Performance of Buildings Directive (review)
Energy Efficiency Directive (implementation and review)
Primary Energy Factor (PEF) for electricity (review)
Renewable Energy Directive (review)
Emissions Trading Scheme Directive (review)
EU Heating and Cooling Strategy
Effort Sharing Decision (review)
State Aid policy
Circular Economy
Follow-up to Energy Efficiency Financial Institutions Group report
Strategic Energy Technology Plan (SET Plan)

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COGEN Europe’s Working Groups
Strategy
Executive
Committee
+
Annual General
Meeting (AGM)
Energy Policy
Working
Groups
Electricity Markets
and Network Codes
Envi. and
Sustainable
Development
Micro-CHP
Vision
Communication
s
Clean Energy for All: EED, EPBD & RED
Reviews, Energy Governance
EED implementation
Energy Union, Juncker initiatives,
Horizon 2020, SET-Plan
Clean Energy for All: Market Design
initiative
European Network Codes – Drafting and
implementation
EU ETS IV reform
RED II
Effort Sharing Regulation 2021-2030
IED / LCP/MCP Directive
Circular Economy Package,
Relevant aspects of EED, EPBD,
Electricity Market Design, Energy
Labelling
Policy Files
StrategySteeringGroup
Secretariat
TechnicalAdvisoryGroup
Research &
Innovation

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The Cogeneration Breakfast Club
Informal network of COGEN Europe’s Brussels-
based member representatives.
Forum for COGEN Europe members to discuss and
exchange information on EU energy and
environmental policies affecting cogeneration.
Monthly meetings on Tuesday the week before the
Plenary Session of the European Parliament in
Strasbourg.
Guest speakers from the EU institutions or Brussels
stakeholders join some of the meetings.

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Coalitions /
Issue-specific Stakeholder Groups
• DecarbEurope
• DecarbHeat
• I.D.E.A.S
• Flexible Thermal Power Plants Group
• Women in Energy Council
• Steering Committee of Heat Roadmap
Europe 4
Alliances with Industry
Stakeholders
• Euroheat & Power (EHP)
• European Heating Industry Association
(EHI)
• EFIEES
• Eurogas, Marcogaz
• CEPI, CEFIC, Starch Europe
• Hydrogen Europe
• CEWEP
Stakeholder Groups Involving
the European Parliament
Stakeholder Groups led by
the European Commission
COGEN Europe is active in…
• European Energy Efficiency
Financial Institutions Group
(EEFIG)
• Smart Grids Task Force (EG3)
• Florence Electricity Forum
• European Network Codes
Implementation Committees
(Connection, Markets &
Operational)
• European Energy Forum
(EEF)

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PACE Project
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PACE – Pathway to a Competitive
European Fuel Cell micro-CHP
market
Follow-up to ene.field project.
Objective: to unlock the market for
Fuel Cell micro-Cogeneration, by
increasing volumes, reducing product
costs, demonstrating its smart grid
capabilities, promoting its visibility,
and creating more favorable policy
conditions at the national and EU
level (>2,650 units to be deployed
across Europe between 2016-2021).
COGEN Europe’s role: Coordinator

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Project Name Duration COGEN
Europe’s role
Budget Achievement
Fuel cells x Combined
Heat and Power
09/2012
–
10/2017
Coordinator €
90,307,094.5
(EU 38%)
Installation of more than 1000 residential CHP/ More mature supply
chain/ Evidence based cost and environmental performances.
Business Models and
financing arrangements
for the
commercialisation of
stationary applications of
fuel cells
2016 Partner € 400,000
Exploration and definition of the business models and financing
arrangements that will seek to enable stakeholders to unlock the market
opportunity for stationary fuel cell in Europe.
Cogeneration observatory
and dissemination Europe
Phase II
07/2012
–
12/2014
Coordinator
€ 1.191.327
(EU 75%)
Develop the first clear plan of action for cogeneration in each EU Member
State / Assess the EED's impact with national stakeholders.
Model cities promote green
CHP - Pacemakers for
renewable energy sources
07/2010
–
06/2013
Coordinator
€ 1.224.736
(EU 71%)
Increase in the share of RES within CHP / Promotion of the use of CHP in
model cities.
Cogeneration observatory
and dissemination Europe
10/2008
–
03/2011
Coordinator
€ 1.100.279
(EU 75%)
Country-specific info on the directive implementation containing a critical
assessment of the progress made by each country towards its stated
national potential goals / CHP Roadmap for Europe to 2020.
Developing, demonstrating
and comparing three high
efficiency micro-
polygeneration plants
05/2006
–
12/2009
Partner € 7.861.883
(EU 41.8%¨)
Develop, demonstrate and assess an innovative, high efficiency concept of
micro-cogeneration system applied to a real demand site under real
operating conditions.
Preparing for the hydrogen
economy by using the
existing natural gas system
as a catalyst
05/2005
–
10/2009
Partner € 17.000.000
(EU 64.7%)
Identification and removal of the potential barriers for the use of hydrogen
as an energy carrier/ Initiating the transition towards the hydrogen
economy.
A European Tracking
System for electricity -
phase II
10/2007
–
09/2009
Partner € 1.160.152
(EU 50%)
An updated inventory of the tracking systems and the implementation of
Guarantees of Origin and electricity disclosure in European countries/
overall strategy for the further development of energy-related certification
schemes in Europe and their potential integration.
Past EU Co-funded Projects (I)

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Project Name Duration COGEN
Europe’s role
Budget Achievement
Smart domestic
appliances in sustainable
energy systems
01/2007 –
09/2009
Partner € 1.351.202
(EU 50%)
Analysis of the economic and ecological costs and benefits of an improved coordination
of domestic appliances with energy supply.
Expert-system for an
Intelligent supply of
thermal energy in
industry
09/2007 –
08/2009
Partner
€ 927.000
(EU 50%)
A new methodology, the EINSTEIN tool-kit, available for low cost, efficient audits
focused on optimizing the thermal energy demand and supply in industry/ A simplified
version of the expert system software tool for web-based self assessment.
Eminent 2
Early market introduction
of new energy
technologies
05/2006 –
05/2009
Partner € 1.425.737
(EU 79.5%)
Identification of over 150 new energy technologies, which key data is entered in the EST
database / creation pf a software tool enabling evaluation of early stage energy
technologies within different national and economic contexts.
Deploying large-scale
polygeneration in
industry
11/2006 –
11/2008
Coordinator € 615.732
(EU 50%)
Detailed map of heat loads in the EU providing estimates of the energy and CO2 saving
potential of polygeneration / Assessment of Eu legislation affecting industrial
polygeneration.
Network for promotion
of Eco-building
technologies
05/2006 –
04/2008
Partner € 1.370.000
(EU 70%) Assessment of EU legislation affecting industrial polygeneration.
Sustainable Energy
Technology at Work on
the European Emissions
Trading Market
04/2006 –
03/2008
Partner
€ 1.240.000
(EU 78.8%)
Development of energy efficient, reduced emissions and CO2 avoidance projects in
emerging climate markets.
Project, continue and
promote small-scale
cogeneration
01/2005 –
12/2007
Coordinator € 780.726
( EU 50%)
1,000 micro-CHP project documented / big information campaign / production of data
base.
European local electricity
production
01/2005 –
06/2007
Partner
€ 1.029.719
(EU 50 %)
Promotion and improvement of distributed generation.
Past EU Co-funded Projects (II)
ProEcoPolyNet

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COGEN Europe Recognition Awards
Each year, COGEN Europe gives recognition to those
who have contributed exceptionally to the
development of the cogeneration sector in four
different categories:
• Policy Development
• Market Development (organisation)
• Market Development (individual)
• Technology and Innovation
Nominations submitted by members are assessed by
industry professionals with a broad knowledge of the
sector.

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Dissemination Activities - I
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Reports and other
Publications
Web Campaigns
Participation to
Events in Europe and
Beyond

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Dissemination Activities - II
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Videos
Articles and
Media
Interviews
New COGEN
Europe brochure
Bimonthly
eUpdate

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4. Cogeneration in Europe (Today and Tomorrow)

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Cogeneration Today
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• More than 100,000 European
consumers self-generate
electricity and heat with
cogeneration in their homes and
businesses.
• 70 million Europeans use district
heating, half of which is supplied
by cogeneration.
• Delivers around 15% of EU’s
energy efficiency and 20% of EU’s
climate and energy 2020
objectives.

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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
10
20
30
40
50
60
70
80
90 Germany
Italy
Netherlands
Poland
Finland
Spain
Slovakia
UnitedKingdom
Denmark
Sweden
France
Belgium
CzechRepublic
Austria
Portugal
Romania
Hungary
Bulgaria
Latvia
Ireland
Greece
Croatia
Lithuania
Estonia
Slovenia
Luxembourg
Cyprus
Malta
TWh
CHP electricity generation (left axis)
Share of CHP in total electricity generation (right axis)
Source: European Commission, Eurostat (2017)
Cogeneration Today: Uptake Across EU

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18,0% 43,5% 20,6% 4,9% 13,1%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2007
2008
2009
2010
2011
2012
2013
2014
2015
Solid fossil fuels and peat
Natural gas
Renewable sources
Oil and oil products
Other fuels
Cogeneration Today: Increasingly
Renewable
Source: European Commission, Eurostat (2017)

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Cogeneration in the Future Energy System
What are we trying to
achieve?
Increasingly
Renewable
Decarbonise
d
Affordable,
Economic
Competitive
More
‘Electrified’
Using less
Primary
Energy
Decentralised
Integrated
Flexible
Resilient
Digital
Cogeneration

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Untapped Cogeneration Potential in the
EU
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11% of Electricity
15% of Heat
21% RES in CHP
20% of Electricity
25% of Heat
33% RES in CHP
Today
Potential
2030
Source: EU Funded Project CODE2 (2014)

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Cogeneration Already Delivers Today
... and will continue to contribute in 2030
with the right policy framework.

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“Clean Energy for all Europeans” Package
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• European Commission published major legislative package at the end of
November 2016:
– Energy Efficiency: Energy Efficiency Directive & Energy Performance of
Buildings Directive Reviews
– Market Design Initiative: Electricity Directive and Electricity Regulation
Reviews, Sector inquiry into capacity mechanisms
– Renewable Energy Directive Review
– Energy Union Governance Proposal (new)
• Key legislative package, setting the 2030 policy
framework for the energy sector.
• Three key aims:
• Put energy efficiency (EE) first
• Make Europe #1 in RES
• Empower energy consumers

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COGEN Europe’s High-Level
Recommendations on the Clean Energy
Package
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Enabling cogeneration to contribute towards a
consumer-led, secure, clean and affordable
energy transition:
• Take a consumer-centered approach to
policymaking;
• “Energy efficiency first” principle
should prevail; and
• Energy systems’ integration is key:
policy should take a holistic approach &
explore synergies between electricity,
heat and gas networks.
COGEN Europe’s full
Position Paper is now
available online!

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Opportunities & Risks for CHP in the Clean Energy
Package
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Energy
Efficiency
- Key to focus on both primary
and final energy
- Efficiency across the whole
energy value chain
- Realistic EU Primary Energy
Factor (PEF) for electricity
Renewable
Energy
- CHP main option for
efficient use of biomass
- Waste heat should not
exclude CHP, but prioritise
it
- Dispatchable RES should
be promoted
Electricity
Markets
- Active energy consumers
(self-consumers) should be
promoted
- Priority of dispatch
maintained for existing CHP
- Fair curtailment & grid
access rules for all CHP

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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
Hans Korteweg
Managing Director
COGEN Europe
E-mail: hans.korteweg@cogeneurope.eu
Phone: +32 (0)2 772 82 90
Website: www.cogeneurope.eu
Twitter: @CogenEurope