CHP Directive

This refers to the Directive on the promotion of cogeneration based on a useful heat demand in the internal energy market and amending Directive 92/42/EEC, officially 2004/8/EC and popularly better known as the 'Combined Heat and Power (CHP) Directive'.

It is a European Union directive for promoting the use of cogeneration in order to increase the energy efficiency and improve the security of supply of energy. This is intended to be achieved by creating a framework for the promotion and development of high efficiency cogeneration.

The directive entered into force in February 2004 and member states have been obliged to begin its implementation since 2006. (however due to delays resulting out of the comitology process, member states had to adopt the first obligations of the directive by 6 August 2007.)

It is intended that the directive will have a significant impact on the legislation and the diffusion of CHP/cogeneration and district heating within the member states of the European Union.

In summary, the Member States are obliged to produce reports covering their analysis of the state of CHP in their own countries, to promote CHP and show what is being done to promote it, to report on and remove barriers, and to track progress of high-efficiency cogeneration within the energy market.[1]

Directorate-General for Energy

The directive comes under and is administered by The European Commission’s Directorate-General for Energy

Support mechanism for CHP per member states

EU27 – Member States’ national support schemes available by categories

EU27‐Member StatesFeed‐In Tariffs (FIT)Feed-in Premiums (FIP)CertificatesTax SupportCapital GrantOther
Austriaxx
WalloniaGx
FlandersG, Wx
BrusselsGx
Bulgariax (only for RES) Upcomingx
Cyprusx
Czech Republicxx
Denmarkx
Estoniax
Finlandx (only for RES) Upcomingxx
Francexx
Germanyxx
Greecexx
Hungaryxx
Ireland1x
Italyxxx
Latviaxx
Lithuaniaxx
Luxembourgx
Malta2x
Netherlandsx (only for RES) Upcomingxx
Poland3x
Portugalxxx
Romania
Slovak Republicx
Sloveniaxxx
Spainx
Swedenxx
United Kingdom4x (only for RES)x

RES = Renewable energy sources
NG = Natural gas
Certificates: W = White certificates, R = Red certificates, Y = Yellow certificates, G = Green certificates
Notes:

  1. Grant support system to assist the deployment of small scale (less than 1 MWe) fossil-fired CHP and biomass (anaerobic digestion and wood residue) CHP systems + Financial tax incentives (Accelerated Capital Allowance Scheme)
  2. Support schemes are under consideration in Malta
  3. In Poland Red certificates are the equivalent of White certificates (for CHP) in other countries. Polish Authorities created also Yellow certificates (for Natural gas and CHP small systems below 1 MW of electric output) which compensate for relatively high cost of natural gas or high investment cost of distributed systems.
  4. Under the Renewables Obligation, CHP plants using renewable energy fuel, such as biomass and biogas, benefit from a premium on each MWh of electricity produced. And new feed-in tariffs for renewables are expected to enter into force from April 2010.
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See also

References
  1. http://www.claverton-energy.com/the-cogeneration-or-chp-directive.html
  • 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 and amending Directive 92/62/EEC. Published 21 February 2004 in the Official Journal of the European Communities: L 52/50
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