Introduction to Cogeneration Leonardo Energy Webinar Rob Smit

Rob.Smit@KEMA.com

Experience you can trust.

Contents
What is Cogeneration Why Cogeneration Application of Cogeneration Economics of Cogeneration Policy in the EU

What is Cogeneration
Cogeneration = the simultaneous production of power and heat, with a view to the practical application of both products.

Heat Fuel Cogeneration Electricity

What is Cogeneration
A way of local energy production Used instead of separate production of heat
and electricity Heat is main product, electricity by-product Uses heat that is lost otherwise Way to use energy more efficient

Different areas of application Different technologies

Energy efficiency
Fuel input Separate generation Power plant 43% Electricity 35 Heat 50 Cogeneration Efficiency: Electricity 35% heat 50% 100 Fuel input

81

53

Boiler 95%

Total 134 (134 - 100) 134

Total 100

Energy conservation =

= 25%

Energy efficiency (II)

Fuel input Separate generation Power plant 55% Electricity 35 Heat 50 Cogeneration Efficiency: Electricity 35% heat 50% 100 Fuel input

64

53

Boiler 95%

Total 117 (117 - 100) 117

Total 100

Energy conservation =

= 15%

Energy efficiency (III)

Fuel input Separate generation Power plant 38% Electricity 35 Heat 50 Cogeneration Efficiency: Electricity 35% heat 50% 100 Fuel input

92

53

Boiler 95%

Total 145 (145 - 100) 145

Total 100

Energy conservation =

= 31%

Why Cogeneration
Improve energy efficiency Reduce use of fossil fuel Reduce emission of CO2
Also, Reduce cost of energy If heat fits demand, cheapest way of electricity production Improve security of supply Use of organic waste as fuel Position on energy market

Application of Cogeneration
Classification:

Scale of application: Heat usage: Technology: User: Ownership:

Large scale small scale Spatial process Gas turbine gas engine One user more users User cooperation

Application of Cogeneration
Process heat

Gas turbine Gas engine

Spatial heat Small scale Large scale

Application of Cogeneration
Gasturbine
Burning fuel causes fan blades to rotate

Gas engine
Burning fuel causes reciprocating motion of cylinders

Application of Cogeneration
Process heat

Gas turbine Gas engine

Spatial heat Small scale Large scale

Application of Cogeneration
Process heat

Gas turbine Fuel cell Gas engine

Spatial heat Stirling Small scale Large scale

Development towards small scale

Industry Glasshouse horticulture Hospitals Office buildings Blocks of houses (heat distribution) One house

Heat and electricity demand

Heat demand

Electricity demand jan feb mar apr may jun jul aug sept oct nov dec

Dimension on electricity demand

Electricity demand Boiler Boiler

Heat from cogeneration Electricity from cogeneration jan feb mar apr may june july aug sept oct nov dec

Dimension on electricity demand

Electricity demand

Boiler

Wasted heat

Boiler

Heat from cogeneration Electricity from cogeneration jan feb mar apr may june july aug sept oct nov dec

Dimension on heat demand

Heat from cogeneration

Electricity demand

Sell electricity to grid

Electricity from cogeneration

jan

feb

mar apr may june july aug sept oct

nov dec

Load duration curve

9 8 7 Boiler Heat storage CHP Heat demand

Heat demand (kW)

6 5 4 3 2 1 0 0 913 1825 2738 3650 4563 5475 6388

Heat coverage CHP: 80% Electricity coverage: 50%

7300

8213

Hours

Economics
Costs
Capital Operation & Maintenance Fuel

Benefits
Heat Electricity - less purchase - sell to grid

Energy flows

Heat Fuel Cogeneration Electricity

Money flows

Heat

Fuel

Cogeneration Electricity

Economic value of cogeneration

Depends very much on tariff system Heat Electricity
avoided cost of separate heat production 1) less purchase (kWh) 2) sale of surplus electricity 3) Peak shaving (kWe)

Carbon credits (future)

Economics
120% 100%

Share in costs of exploitation (%)

80% Other O&M Fuel Capital

60%

40%

20%

0% Combined Cycle Gas turbine Gas engine

Economics
120% Share in benefits of exploitation (%) 100%

80% Avoided grid costs CO2 credits Heat Electricity

60%

40%

20%

0% Combined Cycle Gas turbine Gas engine

Policy in the EU
Cogeneration as a share of national power production
EU UK Sw eden Spain Portugal The Netherlands Italy Ireland Greece Germany France Finland Denmark Belgium Austria Poland

0
Source: COGEN Europe

10

20

30

40

50

60

Policy in the EU
Cogeneration important in meeting EU Kyoto
target Ambition: 18% Cogeneration in 2010 Several directives will support cogeneration Quality indicators Carbon credits

Concluding remarks
Cogeneration improves energy efficiency.. .if heat is used in a proper way otherwise it is just a bad way of electricity
production. Right dimensioning is crucial for economic application. Economic performance will increase because of environmental policy of EU.

End sheet Thank you for your attention

Experience you can trust.