Report: The Future of Cogeneration in Europe: Growth Opportunities and Key Drivers of Success TOC

Summary
Introduction
General framework
Net present value
Risk factors
Non-utility vs. utility cogenerators
CHP vs. utility supply
Revenues and cost savings
Costs
Summary of free cash flow from CHP
CHP vs. stand-alone generation
Direct fuel cost savings
- Fuel efficiency
- Achievable price of power
- Fuel spread
Transmission and distribution savings
Externalities
- Greenhouse gas reductions
- Other social benefits
The problem of scale
The need for support

Summary
Introduction
EU Cogeneration Directive
Guarantees of Origin
Quantification methodology
- Volume of electricity from cogeneration
- Efficiency of cogeneration
- Reference values
Implementation mechanisms
“Green tax” relief: UK case example
Feed-in tariffs and price support: Portugal case example
CHP obligations: Flanders case example
Investment incentives
Other support mechanisms
- Competitive tenders
- Direct targets
- Network assistance
Summary of support mechanisms within member states
- Support schemes outside of the EU
Kyoto mechanisms

Summary
Introduction
Industry organization
Not a “proper” market
Demand-side organization
Supply-side organization
- Stand-alone plants
- Third-party intermediaries
- In-sourced solutions
Current state of the market
European overview
Selected market profiles
- Germany
- Italy
- Denmark
- The Netherlands
- UK
- Turkey
- Russia
Future levels of support
Priority growth areas
The case for micro-CHP
- Benefits and incentives
- Technology requirements and operating regime
- Potential obstacles
- Addressable market
The trouble with biomass
- Benefits and drawbacks
- Likely growth areas
Barriers to growth
Difficult underlying economics
Uneasy relationship with utilities
Planning and permitting burden
Support schemes interfering with market mechanisms

Figure 2.1: Principal schematics of a steam turbine CHP plant
Figure 2.2: Principal schematics of a gas turbine CHP plant
Figure 2.3: Principal schematics of a CCGT turbine CHP plant
Figure 2.4: Principal schematics of a microturbine CHP plant
Figure 2.5: Principal schematics of a reciprocating engine CHP plant
Figure 2.6: Principal schematics of a fuel cell CHP plant
Figure 2.7: Principal schematics of a Stirling engine CHP plant
Figure 2.8: Principal schematics of an inverse gas turbine CHP plant
Figure 2.9: Principal schematics of a hot air turbine CHP plant
Figure 2.10: Principal schematics of a steam engine CHP plant
Figure 2.11: Principal schematics of an ORC engine CHP plant
Figure 2.12: Principal schematics of a Kalina engine CHP plant
Figure 2.13: Output characteristics of the main cogeneration technologies
Figure 3.14: Relative economics of CHP vs. utility supply
Figure 3.15: Capital Cost Requirements to Meet 20 Year Projected Electricity Demand in Brazil and China, 2005-25
Figure 4.16: Cumulative emissions reductions from CDM-registered cogeneration projects, Sept 2005 - Sept 06
Figure 5.17: Leading European CHP markets, 2003
Figure 5.18: Drivers and inhibitors of support for CHP

Table 2.1: Output characteristics of the main cogeneration technologies
Table 2.2: Cost characteristics of the main cogeneration technologies
Table 2.3: Fuel utilization of main cogeneration technologies
Table 2.4: Typical (or optimal) applications of main cogeneration technologies
Table 3.5: Efficiency gain of CHP over separate power and heat generation
Table 4.6: Support mechanisms for CHP within EU-15
Table 5.7: CHP electricity in the EU and neighboring states, 2003
Table 7.8: EC Cogeneration Directive efficiency reference values for separate production of electricity, December 2006
Table 7.9: EC Cogeneration Directive efficiency reference values for separate production of heat, December 2006

The Future of Cogeneration in Europe: Growth Opportunities and Key Drivers of Success