Opinion article sponsored by COGEN Europe, published on Euractiv.com (13 September 2023).

Article by Hans Korteweg, Managing Director, COGEN Europe

As the EU institutions discuss how to reform the design of Europe’s electricity market, it’s important to understand that the electricity market has a central role to play in driving the energy transition and fostering the decarbonisation of Europe’s energy system. In particular, the market should support the deployment of more decentralised, efficient and flexible ways of generating electricity – including cogeneration technologies that can make the best use of precious renewables like biomethane and clean hydrogen, whilst also capturing valuable heat that can be used locally.

[Image: G Tipene (Shutterstock)]

Europe’s electricity market has a vital role to play in driving the energy transition by fostering the increased uptake of renewable energy sources such as solar (PV) and wind, whilst reducing our consumption of fossil fuels and cutting emissions of greenhouse gases – thereby contributing to the objectives of the European Green Deal.

As the EU and its Member States strive to achieve their energy and climate goals for 2030 and beyond, households and businesses are being encouraged to invest in ‘clean’ technologies such as electric vehicles and heat pumps. The successful deployment of these solutions will depend on consumers having access to reliable sources of affordable electrical power.

As we advance towards the goal of ‘net zero’ emissions, an increasingly important share of electricity demand will be covered by renewable energy sources such as solar (PV) and wind – but we must not forget that these intermittent sources of power are not always available and so we cannot rely on them 100% of the time. To put it plainly: the sun isn’t always shining and the wind isn’t always blowing!

Energy storage solutions, such as batteries, have an important role to play, but we will also continue to need dispatchable sources of electrical power that can be called upon to cover the gap between supply and demand, thereby avoiding power outages or blackouts. This will be especially vital during the winter months when there is less power available from solar (PV) and wind, and when electricity demand is highest.

Smart technologies, increased energy efficiency and demand response measures can all help us to limit and hopefully reduce the demand for electrical power, but let’s not forget that technologies like heat pumps and electric vehicles will also lead to increased electricity demand – most particularly during the coldest days (and nights) of the year.

Most experts agree that we will continue to need dispatchable electricity generation in the coming decades – up until 2050 and beyond. The important question to ask, therefore, is which technologies, solutions and energy sources should we use to generate electricity when the supply from non-thermal renewables such as solar (PV), wind and hydroelectric is insufficient to meet the needs of households, businesses and other customers?

In COGEN Europe, we believe there is a very strong case for giving priority to cogeneration* technologies that are highly efficient and decentralised – thereby reducing the amount of energy that is lost in transmission, and also producing valuable heat that can either be used locally (e.g. in a district heating network) or stored for later use. A well-insulated hot water tank is one example of a relatively simple thermal storage solution, and is considerably less expensive than using batteries to store electrical power.

Carbon dioxide emissions can be reduced and eventually eliminated by switching from traditional fuels like natural gas to renewable and low-carbon gases such as biomethane and clean hydrogen. The good news here is that most of the cogeneration systems currently on the market (including reciprocating engines, steam turbines and fuel cells) are already able to run on biomethane, and they can easily be converted to run on hydrogen. This is why we say that cogeneration technologies should be seen as ‘future proof’.

The reform of Europe’s electricity market represents an opportunity for the EU to embrace a more integrated and holistic approach to energy policy that puts energy efficiency first and combines a variety of different energy sources and solutions in order to reduce greenhouse gas emissions as rapidly as possible, whilst also ensuring affordability for customers, managing fluctuations in demand and maintaining reliability of supply.

In this context, COGEN Europe wishes to highlight four key principles that the EU institutions should keep in mind during their discussions on reforming the design of Europe’s electricity market:

Put Energy Efficiency First

The EU and its member states should give priority to high efficiency cogeneration for the supply of flexible (dispatchable) electricity during times of peak demand, instead of building more large-scale conventional power plants. Distributed power generation, including on-site industrial cogeneration, will also contribute to reducing the strain on electricity grids and limiting the costs of investments in necessary grid infrastructure.

Support all flexibility solutions across integrated energy systems

Given the greater reliance on intermittent renewable electricity from solar (PV) and wind, alongside increased electrification of heating and transport, the whole power system will need to become more flexible. Distributed generation including high-efficiency cogeneration using renewable gases and cogeneration will be vital to ensure that supply and demand for electricity are always in balance, also taking seasonal variations into account.

Ensure security of power supply by encouraging necessary investments

Across European regions, power adequacy concerns may persist despite the uptake of flexibility options. In this context, positive investment signals are needed to ensure that sufficient dispatchable electricity generation capacity is installed, in order to maintain security of supply and affordability for end-users.

Empower consumers to produce their own electricity and/or heat

Energy users are increasingly opting for self-generation solutions including cogeneration systems to protect themselves against excessive electricity prices and/or power outages. Europe’s electricity market should encourage efficient and renewable dispatchable generation, allowing businesses, households and other ‘prosumers’ to sell their excess electricity and/or heat to other users when this represents the most efficient and lowest-cost solution.

For further details, please refer to COGEN Europe’s recent position paper on Electricity Market Reform.

* Cogeneration is sometimes called Combined Heat and Power (CHP)

Click here to read the original article on the Euractiv website

Opinion article co-sponsored by COGEN Europe and the PACE Project, published on Euractiv.com (24 April 2023).

Article by Hans Korteweg, Managing Director, COGEN Europe

According to official EU figures, buildings are responsible for around 40% of energy consumption and 36% of energy-related greenhouse gas emissions. At both EU and national levels, policies and regulations are increasingly intended to phase out fossil fuels from the building sector, while boosting the uptake of renewable energy sources and efficient solutions. Moreover, energy affordability, energy system resiliency and security of supply are now more than ever at the top of the political agenda and citizens’ concerns.

[Image: Viessmann]

Experience gained during the EU-funded PACE project shows that fuel cell micro-cogeneration (also known as fuel cell micro-CHP) could play a positive role in reducing emissions and enabling the uptake of renewables, whilst empowering consumers and providing households and businesses with electricity and heat in a way that is efficient, reliable and affordable.

Between 2016 and 2023, the PACE project has deployed and monitored more than 2500 fuel cell micro-CHP systems in buildings across 10 European countries. Results from the trial confirm that this technology is highly reliable, efficient and convenient. Moreover, data analysis, confirmed by customer feedback, shows that overall energy costs for buildings with fuel cell micro-CHP systems are significantly lower than those of other buildings.

Fuel cell micro-CHP is a proven, highly efficient and reliable energy solution that can be installed in buildings of various sizes and uses. It empowers households and businesses (especially SMEs) by enabling them to meet their own electricity and heat needs. At the heart of the system is a fuel cell, which generates electricity and heat by combining hydrogen with oxygen in a clean process that minimises local air pollution. Indeed, fuel cells have been designated as a ‘strategic net-zero technology’ by the European Commission.

Europe has a strong manufacturing base for fuel cell micro-CHP, thanks to more than €200 million of private investments by EU industry. This manufacturing capacity was significantly expanded during the lifetime of the PACE project, which has also provided more than 3400 technicians with training in installation and maintenance.

The results of the PACE project confirm the benefits of fuel cell micro-CHP technology:

Boosts efficiency: with an overall system efficiency of up to 95% and electrical efficiencies between 35%-60%, Fuel Cell micro-CHP can deliver significant energy savings and CO2 emission reductions compared to other technologies.

Minimises air pollution: a fuel cell can generate electricity and heat without burning any fuel. The environmental impact is therefore minimised, with zero emissions of smoke, particles (soot) or chemical pollutants such as sulphur oxides (SOx) and nitrogen oxides (NOx).

Reduces CO2 emissions: fuel cells can deliver significantly lower carbon dioxide thanks to their superior efficiency. When replacing a stand-alone gas boiler, a fuel cell micro-CHP can reduce a building’s overall emissions (including both on-site and off-site emissions) by up to 50%.

Enables the energy transition: as biomethane and hydrogen become more widely available and cost-effective, fuel cell micro-CHP will ensure the most efficient use of these renewable gases, whilst also complementing the wider deployment of wind turbines and solar panels.

Enhances system resilience: in the context of an increasingly decentralized energy system, fuel cell micro-CHP complements intermittent renewables such as wind and solar (PV) and provides a reliable supply of locally produced electricity that can support the deployment of heat pumps and electric vehicles.

Empowers consumers: Fuel cell micro-CHP transforms Europeans into active energy ‘prosumers’ (producer-consumers), contributing to a decentralised energy system with a reduced carbon footprint and lower energy bills. An analysis of energy bills in 3 different EU countries found cost savings for consumers in the range between 30% and 80%.

Supports skilled jobs: The development, design and manufacture of Fuel Cell micro-CHP systems and their components provides an important source of high-quality jobs and contributes to Europe’s economic prosperity. The deployment of this technology also supports jobs across the whole supply chain, including installation and maintenance.

As Europe makes progress along the road towards a more decentralised and carbon-neutral energy system, policymakers and the broader energy community must fully acknowledge the positive role that fuel cells can play. Specifically, fuel cell micro-CHP can ensure that renewable gases like biomethane and clean hydrogen are used in the most efficient way, delivering electricity and heat where it is required. They can support the deployment of clean technologies like heat pumps and electric vehicles, whilst complementing intermittent renewables such as solar (PV) and wind.

The PACE project has brought together a number of leading European manufacturers (BDR Thermea Group, BOSCH, SolydEra, Sunfire & Viessmann) alongside researchers from the Technical University of Denmark (DTU), Element Energy and the Institute for Innovation and Technology Management at HSLU in Switzerland. The project has been coordinated by COGEN Europe and co-funded by the EU’s Clean Hydrogen Partnership.

Click here to read the original article on the Euractiv website

François Paquet, public affairs manager of COGEN Europe, was interviewed by e7, the “Quotidiano Energia” weekly newspaper, to talk about energy efficiency and emission reduction in the context of the European Green deal. Below is an excerpt from the interview.

Looking at the Green deal what could be the role of the cogeneration industry?

The European Green deal aims at making Europe carbon neutral by 2050 and cogeneration is one of the key solutions to achieve this ambition as it allows to produce electricity and heat with less energy and therefore can contribute significantly to achieving zero emissions targets. In addition, it allows to generate energy very economically and will therefore be an indispensable tool to contain the costs of the transition.

Are EU policies sufficient to increase and improve the implementation of cogeneration in industry?

We need clear EU policies which establish favourable measures for renewable energy and energy efficiency, including cogeneration at all levels, in private homes, cities, public buildings and industry. There is a lack of stable support schemes and the forthcoming Green Deal legislation should address this issue. We also believe that regulation should not consider gas, heat and electricity as separate elements but as a whole.

Are there countries that are better than others at implementing such initiatives or that have developed specific exportable best practices?

Germany and Belgium. The former had a clear ambition to support this solution together with renewable energies such as wind power. In addition, there are support plans such as incentive tariffs or investment loans. These support schemes are also available in Belgium, where we see an increase in installed cogeneration capacity, particularly in domestic and commercial applications.

Can you give us an example of the strengths and weaknesses of cogeneration?

Strengths:

• increased competitiveness for companies;

• efficiency which translates into low CO2 emissions and low fuel costs;

• flexibility, allowing citizens and businesses to take control of their energy sources (to have the energy they need, when they need it) and to be a part of the solutions towards a more sustainable world;

• it is a technology ready for the fuels of the future;

• it integrates into the energy system.

 
Weaknesses:

• the initial costs are slightly higher than with power-only or heat-only solutions;

• there is a lack of awareness concerning the benefits of this technology.

How could the EU best support you?

In order to increase the competitiveness of the economy and reduce the energy transition costs, we need a focus on how to establish an ambitious, favourable and stable legislation for energy efficiency and renewable energy, not replacing one with the other.

Read full article in Italian HERE

Demonstrating the latest smart home energy solution by installing more than 1000 units in homes and businesses in ten countries.

The ene.field project has successfully trialed the biggest fleet of fuel cell micro-cogeneration in Europe to date. Its successor project, PACE, aims at bringing costs down: but manufacturers and users say, the technology is market-ready.

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