MEDIUM AND SMALL SCALE CHP Technologies, Legal Framework and

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MEDIUM AND SMALL SCALE CHP Technologies, Legal Framework and Powered By Docstoc
					                    4th International Conference on
          Legal Framework, Investment Opportunities and
            Technical Innovation in the Electricity Sector
                Athens, Greece, 23-24 October 2009




     MEDIUM AND SMALL SCALE CHP:
Technologies, Legal Framework and Potential
                 in Greece


              Christos A. Frangopoulos
        National Technical University of Athens
  School of Naval Architecture and Marine Engineering



                                                             1
              MEDIUM AND SMALL SCALE CHP:
         Technologies, Legal Framework and Potential
                          in Greece


                      Definition

The names “CHP” and “cogeneration” are used
interchangeably to imply the simultaneous
generation of useful thermal energy and electrical
and/or mechanical energy from the same initial
energy source.




                                                       2
     MEDIUM AND SMALL SCALE CHP:
Technologies, Legal Framework and Potential
                 in Greece




     1. Technologies




                                              3
                       1. Technologies


CHP technologies identified in the Directive:
a.   Combined cycle gas turbines with heat recovery
b.   Back pressure steam turbines
c.   Condensing-extraction steam turbines
d.   Gas turbines with heat recovery
e.   Reciprocating internal combustion engines
f.   Microturbines
g.   Stirling engines
h.   Fuel cells
i.   Steam engines
j.   Organic Rankine Cycles
k.   Any other type of technology or combination of
     technologies satisfying the definition of cogeneration.

                                                               4
                             1. Technologies


                                         Fig. 1.1. CHP system with
                                        back-pressure steam turbine.




    Fig. 1.2. CHP system with
condensing-extraction steam turbine.


                                                                 5
                         1. Technologies




Fig. 1.3. Bottoming cycle CHP system with condensing steam turbine
         (Also: Bottoming organic Rankine cycle CHP system).



                                                                     6
                         1. Technologies



                                Fig. 1.4. CHP system with
                                  open-cycle gas turbine.




Fig. 1.5. CHP system with
 closed-cycle gas turbine.



                                                            7
1. Technologies




            Fig. 1.6. CHP system with
               reciprocating internal
                combustion engine.




                                   8
              1. Technologies




Fig. 1.7. Gas-turbine combined cycle CHP system
        with back-pressure steam turbine.

                                                  9
   1. Technologies




Fig. 1.8. Stirling engine.



                             10
                    1. Technologies




Fig. 1.9. Hybrid CHP system with a solid oxide fuel cell
                  and a gas-turbine.

                                                           11
                                  1. Technologies
 Table 1.1. Typical technical characteristics of CHP systems.
                                     Annual          Electric                   Power to
                       Electric                                      Total
                                    average         efficiency                    Heat
                       power                                       efficiency
       System                      availability         %                         ratio
                         MW            %          Load      Load      %            __
                                                  100%      50%
Steam turbine          0.5-100∗      90-95        14-35   12-28     60-85       0.1-0.5
Open cycle             0.1-100       90-95        25-40   18-30     60-80       0.5-0.8
gas turbine
Closed cycle           0.5-100       90-95        30-35   30-35     60-80       0.5-0.8
gas turbine
Joule-Rankine           4-100∗       77-85        35-45   25-35     70-88       0.6-2.0
combined cycle
Diesel engine          0.07-50       80-90        35-45   32-40     60-85       0.8-2.4

Reciprocating
internal combustion    0.015-2       80-85        27-40   25-35     60-80       0.5-0.7
engine package
Fuel cells             0.04-50       90-92        37-45   37-45     85-90       0.8-1.0
Stirling engines      0.003-1.5      85-90        35-50   34-49     60-80       1.2-1.7
* The value 100 MW is a usual upper limit for industrial applications. Systems of this
  type can have higher capacities too.                                                     12
     MEDIUM AND SMALL SCALE CHP:
Technologies, Legal Framework and Potential
                 in Greece




  2. Legal Framework




                                              13
                       2. Legal Framework


  Main documents at the European Union level:

• Directive 2004/8/EC of the European Parliament and of the Council
  of 11 February 2004 on the promotion of cogeneration based on a
  useful heat demand in the internal energy market.

• Commission Decision of 21 December 2006 establishing
  harmonized efficiency reference values for separate production of
  electricity and heat in application of the Directive 2004/8/EC.

• Commission Decision of 19 November 2008 establishing detailed
  guidelines for the implementation and application of Annex II to
  Directive 2004/8/EC.




                                                                14
                         2. Legal Framework


   Main documents in Greece:
• Law 3734, 28.1.2009: Promotion of cogeneration of two or more
  useful forms of energy.

• Law 3468, 27.6.2006: Production of electrical energy from
  renewable energy sources and high efficiency cogeneration.

• Ministerial Decree Nr. Δ5-ΗΛ/Γ/Φ 1/οικ. 15606, 15.7.2009,
  establishing harmonized efficiency reference values for
  separate production of electricity and heat.

• Ministerial Decree, Nr. Δ5-ΗΛ/Γ/Φ 1/οικ. 15641, 15.7.2009,
  establishing α detailed procedure for the calculation of the electric
  energy from cogeneration, of the efficiency of cogeneration and of the
  primary energy savings due to cogeneration.

                                                                     15
                          2. Legal Framework

Law 3468/2006: Main provisions for High Efficiency CHP
   Priority of Independent Producers for connection with the System
   or the Interconnected Network is given to
   (a) CHP systems operating on renewable energy sources or a
       combination of RES and gaseous fuels, with no limit on installed
       capacity.
   (b) Other CHP systems with installed capacity up to 35 MWe.
   Priority of Autoproducers for connection with the System or the
   Interconnected Network is given to
   (a) CHP systems operating on renewable energy sources or a
       combination of RES and gaseous fuels with installed capacity up to
       35 MWe, for the total of the electricity production.
   (b) Other CHP systems with installed capacity up to 35 MWe for the
       excess electricity production and up to 20% of the total annual
       production.
                                                                         16
                          2. Legal Framework


Law 3468/2006: Main provisions for High Efficiency CHP
                                                                 (continued)

  On islands not connected to the network, priority is given first to
  electricity produced by RES and then to the excess electricity produced
  by CHP.

  The Law also establishes the prices for the CHP electricity sold to
  the network. These prices are adjusted with time.




                                                                       17
                        2. Legal Framework

Law 3734/2009
Purpose: The harmonization of the Greek legal framework with that of
the European Union, as established with the Directive.

Main provisions:
• Definitions: Cogeneration, Useful heat, Electricity from
  cogeneration, Efficiencies of cogeneration, Small scale cogeneration
  (<1 MWe), Micro-cogeneration (<50 kWe), Guarantees of Origin,
  etc.
• Electricity from cogeneration: ECHP = HCHP C
• Primary Energy Savings due to cogeneration (with respect to the
  separate generation of electricity and heat)
• Various procedural aspects

                                                                    18
                       2. Legal Framework


Ministerial Decree 15606/2009

It specifies the efficiency reference values for the separate
generation of electricity and heat, which are used for calculation of
Primary Energy Savings due to cogeneration.

It specifies correction factors for
● difference in climatic conditions,
● network losses avoided with cogeneration.




                                                                        19
                     2. Legal Framework
                Ministerial Decree 15641/2009

It defines the efficiencies of a cogeneration unit:
                                          Ec
      “Electrical” efficiency:     ηe =
                                          Fc
                                          H CHP
      Thermal efficiency:          ηh =
                                           Fc

      Total efficiency:            η = ηe + ηh

It defines the Primary Energy Savings:         PES = FE + FH − Fc

and the Primary Energy Savings Ratio:

       FE + FH − Fc    PES                                  1
PESR =              =            or:      PESR = 1 −
         FE + FH      FE + FH                           ηe ηh
                                                           +
                                                        ηer ηhr
                                                                    20
                      2. Legal Framework
                 Ministerial Decree 15641/2009

 It gives a detailed procedure for splitting a cogeneration unit in
 CHP and non-CHP parts, if needed, and for calculating the
 efficiencies, the PES and the PESR of each part.

     Cogeneration Unit                       Hul-CHP: unavoidable losses

                                                   HCHP
               FCHP
                             CHP Part               ECHP
       Fc                                                        Ec
             Fnon-CHP                             Enon-CHP
                           non-CHP Part


                                             Hul-non CHP: unavoidable losses
                                 Hw: waste (avoidable)

Fig. 2.1. CHP and non-CHP (conceptual) parts of a cogeneration unit.
                                                                               21
           MEDIUM AND SMALL SCALE CHP:
      Technologies, Legal Framework and Potential
                       in Greece




3. Cogeneration Potential in Greece




                                                    22
           3. Cogeneration Potential in Greece


Table 3.1. Installed capacity of CHP systems in Greece in 2006.
            Sector                   Installed Capacity
                             Electric (MWe)     Thermal (MWth)
  Public Power Plants             63,7               345,6
  Oil Refineries                  112,6             159,22
  Industry:
                                  59,7             254,06
  Food, Drink and Tobacco
  Industry:
                                  3,3               3,6
  Textile and Leather
  Industry:
                                  10               36,67
  Non-Ferrous Metals
  Industry:
                                  1,1               3,68
  Non-Metallic Minerals
  Tertiary: Hospitals             0,75              0,89
  Tertiary: Universities          2,72              3,09
  Greenhouses                     9,77               11
               Total             263,6             818,8



                                                                  23
            3. Cogeneration Potential in Greece

The CHP potential has been estimated by the
Centre for Renewable Energy Sources in 2008
with two approaches:
(a) a bottom-up approach, starting with an
    estimation of the needs in electrical and thermal
    energy in various sectors (industrial, residential,
    tertiary, agricultural) and then estimating the
    technical and economic potential, and
(b) a top-down approach, using the MARKAL model
    and software.

 A summary of the results of the two approaches is
 presented in the following.
                                                      24
              3. Cogeneration Potential in Greece
               Approach (a) - Residential Sector
       Table 3.2. Technical potential in the Residential Sector
                    (values in peak load demand).
            Thermal load in settlements near
            electricity generation plants: 2.384 MWth
            District heating from independent producers:
                       Thermal load:      2.714 MWth
                       Electric load:     2.194 MWe
            Single houses:
                     Thermal load:            32.329 MWth
                     Electric load:           19.741 MWe
            Apartment buildings:
                    Thermal load:             16.525 MWth
                    Electric load:            10.091 MWe

The following have been excluded from the estimate:
• The area of the prefecture of Athens, because it requires a special study
• Cities and settlements with fewer than 5000 inhabitants.                 25
            3. Cogeneration Potential in Greece
             Approach (a) - Industrial Sector

   Table 3.3. Technical potential in the Industrial Sector
          (based on questionnaire data analysis).

                                        Technical Potential
      Type of Industry
                                Electric (MWe)     Thermal (MWth)
Food, beverages & tobacco           629,14             1222,36
Paper, pulp and printing             82,78              189,93
Wood and Products                    25,01             249,71
Textile, leather and clothing       108,74             236,66
Chemical & petrochemical            106,36              166,50
Iron & steel +
                                    955,06           1697,83
non-ferrous metals
Non-metallic minerals*              98,52             171,55
              Total                2005,64           3934,54
    * brick manufacturing




                                                                    26
         3. Cogeneration Potential in Greece
           Approach (a) - Tertiary Sector


 Table 3.4. Technical potential in the Tertiary Sector.

                                Technical Potential
   Type of buildings
                        Electric (MWe)     Thermal (MWth)
Hotels - Mainland           147,72             200,58
Hotels - Islands             26,48              33,18
Hospitals                   109,18             164,42
Universities                 67,34              97,26
Airports                      2,5                3,99
           Total            353,32             499,43

Office buildings            5504              3360




                                                            27
        3. Cogeneration Potential in Greece
                   Approach (a)
      Economic Potential in the Industrial Sector

Industrial Sub-sectors participating in the sample:

       • Iron, steel and non-ferrous metals
       • Chemicals, Petrochemicals
       • Food, beverages and tobacco
       • Paper, pulp and publishing
       • Wood and wood products
       • Textiles, leather and clothing
       • Non-metallic minerals (bricks)




                                                      28
                                        3. Cogeneration Potential in Greece
                                                  Approach (a)
                                     Economic Potential in the Industrial Sector

                                Economic Potential for Cogeneration in all Industrial Sub-sectors
                                                 participating in the Sample
 Cogeneration Potential (kWe)




                                2.500.000

                                2.000.000

                                1.500.000

                                1.000.000

                                 500.000                                          DPB (>20)
                                                                                DPB (0-15)
                                                                              DPB (0-12)
                                           0                                DPB (0-8)    Potential
                                            0% 10%
                                                   20%    30%              DPB (0-5) Payback Period
                                                                40%     50%                (Years)
                                   Subsidy (% of the investment cost)

Fig. 3.1. Economic potential of cogeneration in the Industrial
  Sector as a function of the subsidy on investment and the
                 acceptable payback period.
                                                                                                      29
                                            3. Cogeneration Potential in Greece
                                                      Approach (a)
                                         Economic Potential in the Industrial Sector
                                     Economic Potential for Cogeneration in all Industrial Sub-sectors
                                                      participating in the Sample
      Cogeneration Potential (kWe)




                                     2.500.000

                                     2.000.000

                                     1.500.000

                                     1.000.000                                               Potential
                                                                                          Payback Period
                                      500.000                                                 (Years)
                                                                                          DPB (>20)
                                                0                                      DPB (0-12)
                                            -40% -30%                                 DPB (0-15)
                                                      -20%-10%                       DPB (0-8)
                                                               0% 10%               DPB (0-5)
                                                                      20% 30%
                                                                              40%
                                          Cost of Fuel (0% corresponds to
                                                 the current price)

Fig. 3.2. Economic potential of cogeneration in the Industrial Sector as a
      function of the cost of fuel and the acceptable payback period.
                                                                                                           30
                                               3. Cogeneration Potential in Greece
                                                           Approach (a)
                                               Economic Potential in the Tertiary Sector

                                  Economic Potential for Cogeneration in the total of Hotels in Greece in relation to the Potential Payback Period
                                                                     (Grid-Connected and non-Connected)


                               200.000


                               180.000


                               160.000


                                                                       Grid Connected System
Cogeneration Potential (kWe)




                               140.000
                                                                       non-Connected Systems

                               120.000


                               100.000


                                80.000


                                60.000


                                40.000


                                20.000


                                     0
                                   DPB (0-5)               DPB (0-8)                       DPB(0-12)         DPB(0-15)               DPB(>20)

                                                                          Potential Payback Period (Years)




                    Fig. 3.3. Economic potential of cogeneration in Hotels
                        as a function of the acceptable payback period.
                                                                                                                                                     31
                                                3. Cogeneration Potential in Greece
                                                        Approach (a)
                                            Economic Potential in the Tertiary Sector
                                    Economic Potential for Cogeneration in relation to the Subsidy for the Investment
                                                                             in hospitals




                                120.000



                                100.000
  Cogeneration Potential (kWe




                                 80.000



                                  60.000



                                  40.000


                                                                                                                  DPB(>20)
                                   20.000
                                                                                                              DPB(0-15)

                                                                                                         DPB(0-12)
                                           0                                                                              Potential Payback Period in
                                                                                                      DPB (0-8)           Years
                                               0%
                                                    10%
                                                           20%                                    DPB (0-5)
                                                                     30%
                                                                               40%
                                Subsidy (% of the cost of the investment)                   50%




Fig. 3.4. Economic potential of cogeneration in Hospitals
    as a function of the subsidy on investment and the
                acceptable payback period.                                                                                                              32
                   3. Cogeneration Potential in Greece
                        Approach (b) : MARKAL Model
Table 3.5. Development of electric and thermal capacity of CHP in Greece.
                                               2010          2015          2020
                                             MWe MWth      MWe MWth      MWe MWth
           Tertiary Sector                    22    39       61   93      90    133
           Hotels – Grid Connected             2     4        5    8      12     20
           Hotels – Island Systems             2     3        5    6      12     15
           Hospitals                           2     4        5    8      12     20
           University Campuses                 2     4        4    6       5      8
           Office Buildings                   10    19       11   21      11     21
           Other Tertiary – Grid Connected     2     4       29   41      31     44
           Other Tertiary – Island Systems     1     1        3    3       6      6

           Residential Sector                  0       0      0      0     24     39

           Industry                           608   1136   1110   1841   1271   2020
           Food, Beverages and Tobacco         58    123    175    288    186    289
           Textile, Leather and Clothing        0      0     40     89     40     89
           Pulp, Paper and Printing             0      0      2      4      2      4
           Chemical Industry                  120    192    171    269    222    326
           Wood & Products                    150    360    180    432    200    480
           Aluminum                           213    382    223    396    211    368
           Iron & Steel                         8      9    110    124    110    124
           Non-Metallic Minerals               60     70    210    239    300    340

           Refineries                         70     107     70    107     70    107

           Total                             701    1282   1241 2041     1455 2299
                                                                                       33
Thank you for your attention




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