The European Association for the Promotion of Cogeneration


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18 Sep 2017

COGEN Europe Insists Making EU Electricity Rules Fit for the Energy System of the Future


COGEN Europe today announced Delivering an Electricity Market Design that unlocks the existing potential for flexibility, empowers active energy consumers and helps integrate more renewable energy, will require looking at the entire energy system to fully unleash the benefits of key customer-led energy solutions like cogeneration.

Ahead of the Informal Meeting of EU Energy Ministers in Tallin, Estonia on 19-21 September and in view of the ongoing EU debate around the Electricity Market Design, COGEN Europe announces today key legislative recommendations on the file:

  • Address electricity in the wider context of the energy system: Interactions between all energy carriers should be considered, including the important flexibility potential provided by heat networks, gas grids and transport sector, which go beyond electrification
  • Take a balanced approach on priority of dispatch ensuring that existing investments in high efficiency cogeneration are not at risk of decommissioning and maintaining clear market signals for future investments in efficient, sustainable and flexible distributed generation
  • Take into account the “energy efficiency first” principle and recognise the continuity of heat supply, when applying curtailment rules to high efficiency cogeneration. Guaranteeing access to the grid for the electricity produced by cogeneration is especially important for the competitiveness, efficiency and sustainability of industries requiring reliable supply of process heat as well as electricity
  • Ensure transparent, cost-reflective and non-discriminatory network tariff structures, based on real use of the grid
  • Recognise the diversity of active energy consumers (i.e. residential, public, commercial and industrial) as well as energy services companies and other third parties enabling them to fully benefit from emerging opportunities in electricity markets
  • Recognise on-site cogeneration embedded in the local economy as part of adequacy assessments

Cogeneration is an important energy efficinecy solution, which can provide flexibility across different energy vectors. Addressing electricity markets as part of the wider energy system, will ensure the right signals for cogeneration to provide value where it matters the most: quickly responding to fluctuations in electricity demand, utilising its heat storage capabilities and/or optimising operation for high efficiency and reliable supply of steam to key European industry, said Hans Korteweg, COGEN Europe, Managing Director. A silo approach to the Electricity Market Design should therefore be avoided if Europe wants to reach its 2030 energy and climate objectives and foster competitiveness.”


COGEN Europe’s Position Paper on the Electricity Market Design is available here.

Read the full COGEN Europe position on the Clean Energy Package here.