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Combined Heat and Power (CHP) as a Special High Efficiency Case

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									Combined Heat and Power (CHP) as a Special High Efficiency Case
DSM AUPTDE workshop, Tripoli, Libya, 10 February 2009 Thomas D. Schmitz
Thomas D. Schmitz, DSM AUPTDE workshop, 10/02/2009, Tripoli, Libya, 1 / 20

Content
 Basics on CHP – definition etc.  Technology overview  Evaluation of CHP  Benefits of CHP (for the operator and regulator)  Barriers for CHP  Distribution of CHP, the example EU  Options to promote CHP  Possible next steps

Thomas D. Schmitz, DSM AUPTDE workshop, 10/02/2009, Tripoli, Libya, 2 / 20

Definition Combined Heat and Power
Definition:
CHP (also called cogeneration), describes the principle in extracting usable heat from a thermal power generating process leading to a reduction of waste heat. Due to synergy effects, the total efficiency rises and prime energy consumption is reduced.

Conventional generation: Seperate generation of power and heat

More efficient generation:
Combined generation of power and heat
Thomas D. Schmitz, DSM AUPTDE workshop, 10/02/2009, Tripoli, Libya, 3 / 20

CHP and NON-CHP parts of a plant

FB NO

S te a m

S te a m

S te a m

pnon-CHP
G

pCHP
ST BP

G

ST CO

H eat C onsum er

H eat C onsum er

C ondenser

qnon-CHP
C o n d e n s a te C o n d e n s a te

qCHP
C o n d e n s a te

Thomas D. Schmitz, DSM AUPTDE workshop, 10/02/2009, Tripoli, Libya, 4 / 20

Applied CHP Technologies
Steam turbine Gas turbine Gas- and Steam CHP technologies Diesel- and gas combustion engines Miscellaneous Innovative technologies Extraction condensing Backpressure Microturbine with h.r. STIG with heat recovery

with heat recovery
CC Extraction cond. CC Backpressure Organic Rankine cycle Piston steam engine Fuel cell Stirling engine Steam screw engine

Thomas D. Schmitz, DSM AUPTDE workshop, 10/02/2009, Tripoli, Libya, 5 / 20

CHP – The Business Case (one example)

Requires input of 100 energy units, A saving of 30% in prime energy consumption

Requires input of 143 energy units

Thomas D. Schmitz, DSM AUPTDE workshop, 10/02/2009, Tripoli, Libya, 6 / 20

Definition Carnot Efficiency:

Where does the saving comes from?
Carnot efficiency [-]
100% 90%


P

Carnot



T

upper

-T
upper

lower

T
el/mech

 

Carnot

*Q

CHP potential (normally cooling tower losses)
80% 70% 60% 50% 40% 30% 20% 10%

max thermodynamic efficiency with thermal power generation (Carnot efficiency - physical barrier)
lower temperature = 20°C

0% 0 200 400 600 800 1000 1200 1400 upper temperature of thermal process [°C]

Thomas D. Schmitz, DSM AUPTDE workshop, 10/02/2009, Tripoli, Libya, 7 / 20

100%
(losses)

90% 80%

Thermal Efficiency
Carnot efficiency [-]
70% 60% 50% 40% 30%
(losses)
Tu = 20°C (ambient temperature) Tu = 100°C (5 barabs process steam)

Tu = 175°C (9 barabs process steam)

Electrical Efficiency
20% 10% 0% 0 200 400 600 800 1000 1200 1400 upper temperature of thermal process [°C]
Thomas D. Schmitz, DSM AUPTDE workshop, 10/02/2009, Tripoli, Libya, 8 / 20

Evaluating CHP I
PES = Primary Energy Savings

    1 PES  1   x 100 % CHP H _ eta CHP E _ eta     Re f H _ eta Re f E _ eta   
[Source: EU Directive 2004/8/EC]

CHP E_eta = P / F (electrical efficiency of cogeneration plant) Ref H_eta = reference efficiency of separate heat production CHP H_eta = Q / F (thermal efficiency of cogeneration plant) Ref E_eta = reference efficiency of separate electricity production P = electrical generation Q = thermal production F = fuel energy consumption P, Q, F – annual mean values!!!
Thomas D. Schmitz, DSM AUPTDE workshop, 10/02/2009, Tripoli, Libya, 9 / 20

Evaluating CHP II
70%
90% 80%

60%

70% 60% 50%

Assumptions for reference efficiency values for: separate process heat production: 85% separate electricity generation: 30% Overall CHP efficiency
40% 85% 90% 100% 30%

Primary Energy Savings (PES)

50%

Electrical CHP efficiency

40%
70%

80%

20%

30%
50%

60% 10%

20%
40% 0%

10%

0% 0% 10% 20% 30% 40% 50% 60%
65% 70%

80%

90%

100%

Thermal CHP Efficiency
Thomas D. Schmitz, DSM AUPTDE workshop, 10/02/2009, Tripoli, Libya, 10 / 20

Application of CHP
Basic requirements to apply heat and power: 1. 2. Existing Heat requirement (e.g. process heat, district heating etc., but also cooling demand) Power demand (or option to sell power, e.g. to national grid)
Typical industries not suitable for CHP (heat is required with very high temperatures) - Cement industry - Steel industry - etc.

Typical applications of CHP - Space heating - Large scale cooling (with absorption chiller) - Applications with process steam: • Paper industry • Food industry • Textile industry • Chemical industry (refineries etc.) • Sugar industry • etc.

Thomas D. Schmitz, DSM AUPTDE workshop, 10/02/2009, Tripoli, Libya, 11 / 20

Benefits with CHP for the operator
 Increased comparative advantage due to lower specific energy costs  Price stability (with long term contract for fuel, no dependency on utility)  Independent generation  security of supply  Secure investment, if heat and power demand can be forecasted  Independent generation  increase quality of electricity: stable frequency  With more generation than consumption: selling of electricity as new sources of income or business opportunity  For utilities, provision of heat/coldness as a new source of business

Thomas D. Schmitz, DSM AUPTDE workshop, 10/02/2009, Tripoli, Libya, 12 / 20

Benefits for the regulator
 Decentralised generation  reduced transmission losses  reduced requirements in grid investments  Investments in new electricity generating units (fast implementation)  Increased energy security  Reduced prime energy consumption;
- Lower dependency on imported fuels resp. more fuel to be exported - Less expenditure of hard currency on fuel imports - Reduced overall emissions

 Increased comparative advantage of industry

 New business opportunities: Energy Saving Companies (ESCO), contracting

Thomas D. Schmitz, DSM AUPTDE workshop, 10/02/2009, Tripoli, Libya, 13 / 20

Barriers for CHP – including…
 Thermal demand does not match with power demand  Poor technical layout and design in use (part-load operation!)  Poor maintenance and retrofit of existing plants
technical social

 General awareness
 Little knowledge and diffusion of absorption cooling machines  High quality fuel limited or only expensive available  Quality of grid electricity: Variation in frequency and large idle power (island mode preferred - difficulties of synchronising to the grid)
environmental

 Lack of trust to utilities of plant operators
 Legal framework  Difficulties for companies to finance CHP plants  Little revenue on electricity fed into the grid  low (subsidised) energy prices lead to uneconomic CHP
Thomas D. Schmitz, DSM AUPTDE workshop, 10/02/2009, Tripoli, Libya, 14 / 20

economic

Share of electricity generation of total generation

CHP in the EU - Share of electricity generation of total generation
60% 50% 40% 30% 20% 10% 0%

Share in total electricity generation

Electricity generated with CHP (shares not available) Electricity generated with CHP by UTILITY electricity generated with CHP not by utility (INDUSTRY etc.)

Luxembourg

Netherlands

Czech Rep.

Denmark

Hungary

Belgium

Finland

Poland

Romania

Lithuania

Portugal

Bulgaria

Germany

Ireland

Turkey

Spain

Slovenia

Slovakia

Sweden

Austria

Estonia

(source: Eurostat – EU)

Thomas D. Schmitz, DSM AUPTDE workshop, 10/02/2009, Tripoli, Libya, 15 / 20

Greece

Country

Cyprus

EU-27

France

Latvia

Malta

Italy

UK

Heat generation with CHP [TWh] for EU member states/ Turkey

CHP in the EU - Heat generation with CHP [TWh]
Heat Production with CHP [TWh]
200 180 160 140 120 100 80 60 40 20

Total heat production (share not available) Heat produced by utilities Heat produced not by utilities (industry etc.)

53 % by utility 47 % not by utility

Luxembourg

0

Netherlands

Czech Rep.

Belgium

Finland

Denmark

Hungary

Poland

Bulgaria

Romania

Portugal

Lithuania

Germany

Sweden

Ireland

Turkey

Spain

Austria

Slovenia

Slovakia

Estonia

Country

(source: Eurostat – EU)
Thomas D. Schmitz, DSM AUPTDE workshop, 10/02/2009, Tripoli, Libya, 16 / 20

Greece

Cyprus

France

Latvia

Malta

Italy

UK

Options to promote CHP

Options to promote CHP I: Energy Service Company (ESCO)
Technical plant management Plant operation Plant optimisation (economically) Plant operation Energy saving contractors Financing Energy Service Company Delivery of all kind of energy services Installation of new plant resp. renovation Financing Plant optimisation (economically) Plant operation Energy Service Company plus… Delivery of all kind of energy services Installation of new plant resp. renovation Financing Plant optimisation Plant operation Facility management etc.
Thomas D. Schmitz, DSM AUPTDE workshop, 10/02/2009, Tripoli, Libya, 17 / 20

Energy costs

Options to promote CHP

Options to promote CHP II: Subsidies - the German approach
 Large share of heat for new buildings have come from CHP or renewable sources Small plants are more subsidised  Grid operator has to pay “avoided grid fee” to CHP operator  Grid operator has to accept CHP-electricity as feed in and has to pay an “ordinary price”

German target: share of 25% CHP in electricity generation by 2020

 Subsidies: only on high efficient CHP plants (according to EU directive)
 only with new or modernised plants (50% of investment)  on all electric units generated  max. yearly subsidies of 750 Mio EUR

Electrical capacity of individual plant Up to 50 kW 50 kW – 2 MW > 2 MW

ct/kWh 5.11 2.1 1.5

max time of subsidies 10 years 6 /4 years 6 /4 years

 duration 2009 - 2016

Thomas D. Schmitz, DSM AUPTDE workshop, 10/02/2009, Tripoli, Libya, 18 / 20

Possible next steps
 Potential analysis per country / region
Identification of technical potential Identification of economic feasible potential Identification of particular barriers of CHP Development of solutions to overcome these barriers

 Pilot project for Trigeneration – “Combined Heat and Cooling and Power
Applicability of absorptions chillers in general – detailed cost benefit analysis

 Regulator
Evaluation of demand on regulations to promote CHP Gathering of experiences from other countries with comparable initial situation

Thomas D. Schmitz, DSM AUPTDE workshop, 10/02/2009, Tripoli, Libya, 19 / 20

www.gtz.de/energy

Thank you!
Thomas D. Schmitz, DSM AUPTDE workshop, 10/02/2009, Tripoli, Libya, 20 / 20


								
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