COGEN EUROPE
The European Association for the
Promotion of Cogeneration


COGEN Europe
News Archive 2006

15/12/2006
Parliament welcomes Commission's Green Paper on a European Strategy for Sustainable, Competitive and Secure Energy
Yesterday in Parliament, the report on the Commissions Green Paper on a European Strategy for Sustainable, Competitive and Secure Energy, presented by Eluned Morgan was adopted with a large majority. The European Parliament asks for binding targets for the reduction of CO2 emissions and for the increase in the use of renewable energy sources. In addition, the report asks the Council and the Commission to set energy efficiency measures as cross cutting-priority for all EU policy areas and supports an EU target for energy efficiency improvements of at least 20% by 2020. Read the European Parliament press release.
12/12/2006

COGEN Europe's response to the European Parliament's vote on the Green Paper on Energy
On the eve of the European Parliament’s vote on the European Commission’s Green Paper on Energy, a group of leading energy efficiency industries are urging the European Parliament to get serious about energy savings. With the industry being able to deliver an estimated reduction of at least 20% in CO2 emissions within 20 years, whilst saving billions of EURO in energy costs and delivering hundreds of thousands of jobs, ambition should be high. With the effects of climate change already being felt and with energy prices remaining high, the time for action is now.
Read this press release here.

08/12/2006
COGEN Europe welcomes the new German Presidency.
COGEN Europe
urges the new Presidency to put energy efficiency measures in electricity supply to the top of their agenda for urgent implementation. Read COGEN Europe's open letter to welcome the Presidency.
04/12/2006
Subject: Commission slashes NPA2 allocations
The Commission has just released its first set of decisions concerning the phase-2 National Allocation Plans in which they have reduced the allowances by almost 7 per cent below the emissions proposed by the national allocation plans and 7 per cent below the 2005 emissions.
Please find below the table extracted from the Commission's Press release.
Member State
Proposed cap
Allowed cap
Germany (1)
482
453.1
Greece
78.5
69.1
Ireland
22.6
21.15
Latvia
7.7
3.3
Lithuania
16.6
8.8
Luxembourg
3.95
2.7
Malta
2.96
2.1
Slovakia
41.3
30.9
Sweden
25.2
22.8
UK
246.2
246.2

To look at this in more detail, please follow the following link: http://ec.europa.eu/environment/climat/ip_1650.htm
In addition, the Commission has released a 17-page communication on the assessment of phase-2 NAPs that provides the reader with the methodology used by the Commission: http://ec.europa.eu/environment/climat/pdf/nap2006/20061128_communication_en.pdf
It will be very interesting to follow the evolution of phase-2 allowances in the days and weeks to come. Perhaps more crucially though it will be essential to monitor the way in which governments will treat cogeneration installations, both existing and new entrant in the hope that the end in over-allocation will not put cogenerators at a competitive disadvantage.

27/11/2006
Workshop on “Technical and financial aspects of energy efficiency and CO2 reductions through Cogeneration, Trigeneration and Polygeneration in the European Food and Drink Industry”.
COGEN Europe organises on Tuesday 12 December in Brussels the Workshop on “Technical and financial aspects of energy efficiency and CO2 reductions through Cogeneration, Trigeneration and Polygeneration in the European Food and Drink Industry”. This event is organised within the Optipolygen project, a project that looks into assessing the potential to save energy in the food sector by applying polygeneration. The outcomes of this project are important for other industry sectors as well.
The food and drinks industry is one of the largest sectors in Europe. Food industries consume considerable resources for their energy needs, including fuels and electricity. Polygeneration can help food industries meet their energy needs at lower costs and lower environmental impact. The results of the Optipolygen project show the potentials to save energy in the different sectors (meat, dairy, cereals, sugar, etc) and thereby save money, which contributes to the sector’s competitivenessThe aim of the Workshop is to highlight the potential for cogeneration in the European food sector. Next to a policy overview on energy efficiency by Mr. Guido de Wilt, the Commission expert on cogeneration, the outcomes of two related projects (Optipolygen and BESS) will be presented together with contributions from the market players.
Attendance to this event is free of charge. Please find here the draft agenda and the registration form. More information on the Optipolygen project can be found on www.optipolygen.org For more information on the Workshop, please contact Stefan Craenen on stefan.craenen@cogen.org
24/10/2006
Dimas shows the EC is serious aut phase-2 NAPs
The European Commission is likely to send several Member States back to the drawing board after Commissioner Dimas (Environment) expressed irritation on Monday at the fact that “the first 17 notified national allocation plans [for 2008-12] propose a cap about 15% above actual emissions in 2005."
The Commission has made it clear that it expects Member States to ensure that the phase-2 NAPs are consistent with international commitments under the Kyoto Protocol and the European Burden Sharing Agreement.

The Finnish environment minister and council president Jan-Erik Enestam however stressed that not too much weight should be placed on 2005 emissions, given that 2006 or 2007 emissions could be significantly higher, especially if hydropower generation is lower than in 2005. His position was in line with the Council resolution on climate change that avoided any reference to 2005 emissions. 
23/10/2006
ConocoPhillips to Expand Europe's Largest Combined Heat and Power Station 10/20/2006 HOUSTON – October 20, 2006 ConocoPhillips [NYSE:COP] today announced the approval of an investment of approximately $400 million (£210 million) to expand the capacity at its Immingham Combined Heat and Power (CHP) plant in the United Kingdom by 450 Megawatts (MW), from 730 MW to 1,180 MW. This expansion would make Immingham CHP one of the world's largest and most efficient power stations and an additional source of low carbon heat and power for the U.K. Commercial operation of the expansion is currently expected to start in the summer of 2009.
The plant provides steam heat and electrical power to ConocoPhillips' Humber refinery and steam heat to Total's Lindsey oil refinery, both adjacent to the plant in North Lincolnshire, U.K. By combining the production of heat and power, Immingham CHP uses 20 percent less fuel and produces 25 percent less carbon than the alternative of producing heat and power separately. Immingham CHP will now contribute 12 percent toward the U.K.'s CHP target of 10 Gigawatts by 2010.
"The expanded CHP capacity demonstrates ConocoPhillips' commitment to include lower carbon technologies in the company's portfolio," said Bob Hassler, president of ConocoPhillips European downstream operations. "This major long-term investment by ConocoPhillips is timely in view of the U.K. government's ongoing industry support for combined heat and power. This support has included the granting of the Climate Change Levy exemption for the plant's power output and the more favorable treatment for CHP operations in the second phase of the European Union's Emissions Trading Scheme."
Energy Minister Malcolm Wicks said, "Combined heat and power plants like the one being expanded at Immingham are designed to produce both electricity and usable heat. They bring environmental benefits due to their very high levels of efficiency."
The Immingham CHP commenced commercial operation late 2004, and is one of the largest, cleanest and most efficient of its type in Europe. The expanded plant, together with ConocoPhillips' Humber refinery, is strategically placed to realize the vision of an ultra-low-carbon integrated energy hub able to supply heat and power to a wide range of local industrial customers. If current studies demonstrate economic feasibility, the enlarged Immingham CHP could be modified to utilize gasification technology to operate as a 'clean coal' facility with carbon dioxide stored or used for enhanced oil recovery.
ConocoPhillips is an integrated petroleum company with interests around the world. For more information, go to www.conocophillips.com.
20/10/2006

Framework for Intelligent Energy - Europe II adopted
The EU Member States adopted on 12 October 2006 a decision to establish the European Competitiveness and Innovation Programme 2007-2013 programme.
Around 20 per cent of the € 3.2 billion budget envvelope of this programme will be allocated to the Intelligent Energy - Europe II programme. The concrete sum currently discussed is around the € 730 million mark.
Press release:
http://www.consilium.europa.eu/uedocs/cms_Data/docs/pressdata/en/misc/91292.pdf
Full text of the decision:
http://register.consilium.europa.eu/pdf/en/06/st03/st03622.en06.pdf

20/10/2006
Action Plan for Energy Efficiency
Yesterday, at long last, the European Commission released the Action Plan on Energy Efficiency. COGEN Europe welcomes the action plan but believes that Energy Efficiency is not yet at the main stream of energy policy. A press release with COGEN Europe's reaction has been issued.
13/10/2006

Hydrogen & Fuel Cell Platform R-Draft Implementation Plan (Oct 06)
Presented at the European Hydrogen & Fuel Cell Platform 3rd General Assembly (Brussels, 4-6th October 2006)

The Implementation Plan (2007-2015) comprises 4 Innovation and Development Actions (IDAs), which emphasize the priorities for Europe and encompass all necessary activities to achieve the “snapshot 2020” targets of the HFP. The 3rd IDA concerns “FC for CHP and Power Generation”.
The goal is to have more than 1 GW in capacity in operation by 2015, with PEMFC, MCFC and SOFC technologies all contributing to this target.
The key 1 GW target is based on the cumulative deployment of FC technologies in residential applications (1 to 10 kW) with 80,000 units, small industrial applications (10 kW to 1 MW) with 2600 units and larger industrial applications (< 1MW) with 50 units.
Most of the hydrogen for industrial power generation is expected to come from by-product hydrogen.
The total budget requirement for IDA 3 has been estimated at EUR 2853 million, with 49% of those funds to go to SOFC R&D and demo projects.
The Implementation Plan also includes performance and price targets for stationary applications. These are laid out in the table in the attachment.

05/10/2006
7th Annual WADE Decentralized Energy Conference Expo & Annual Meeting, Prague
Simon Minett will be speaking at this event on the “Opportunities and Obstacles for CHP and DE around the World”. In addition, COGEN Europe will be holding it’s EGM during this event on the 30th October. Members of COGEN Europe are entitled to attend the WADE event at the much reduced rate of €650 for the two days including the dinner.
03/10/2006

Upcoming Commission proposals
At the end of this year the European Commission will put forward the most important and ambitious energy package it has ever presented, reacting to the call of the Heads of State at the Hampton Court Summit for a European Energy Policy. “Producing such a package can only be done on the basis of a full and wide public = and expert consultation, something that I place enormous importance on”, according Mr Andris Piebalgs, Energy Commissioner, during his speech in Bratislava 28 September at the Annual Conference of Gas Infrastructure Europe. His intention is that at the end of the year the Commission tables the following measures:
-a EU Strategic Energy Review, that will endeavour to provide a vision – a central European energy objective – that will underpin a European Energy Policy and give a practical step-by-step road map on how to achieve this vision
- the Long-term Renewables Road Map
- the Internal Energy Market Review and the final results of the Sectoral Competition Energy Enquir-
- a Priority Interconnection and Infrastructure Plan

- a Communication on Sustainable Coal
- a “PINC” Communication on nuclear energy in the EU as required by the Euratom Treaty

In addition to these documents the Action Plan on Energy Efficiency will also be tabled by the European Commission and in 2007 a Strategic Energy Technology Plan will follow.

26/09/2006
Positive vote for reference values!
The CHP committee (set up under the CHP Directive) has voted positively for the Commission Decision for harmonised efficiency reference values. Out of a total number of 321 votes, 236 were positive. The proposed Commission Decision has now been sent to the European Parliament under the right of scrutiny. COGEN Europe is extremely pleased that the Member States have given their endorsement to the reference values as this is a vital part of the realisation of the CHP Directive. We now hope the European Parliament also returns very positive comments.
22/09/2006
COGEN Europe responds to the EU Green Paper on a European Strategy of Energy
COGEN Europe has today issued a Policy Paper in response to the EU Green Paper entitled “A European Strategy for Sustainable, Competitive and Secure Energy”. COGEN Europe agrees with much of the analysis of the Green Paper and its supporting documents, though emphasises the need for a more holistic view of energy use which considers electricity, heat, transport and water usages as all part of the same system rather than separately. Download COGEN Europe’s Policy Paper.
21/09/2006
EU Energy Efficiency Plan
The EU Energy Efficiency Plan due to be published next week aims to cut energy consumption by 20% by 2020. The Action Plan will provide a framework of policies and measures in order to achieve this target. COGEN Europe will give its response to the Action Plan once it is published.
20/09/2006
Meeting of the Working Group on “Small & Medium-scale CHP”
The internal COGEN Europe Working Group on “Small & Medium-scale CHP” is meeting on Friday 29 September in Paris. Issues such as air quality, grid connections and support schemes, will be discussed. In addition, several speakers have been invited. Mr Ulrik Stridbaek, senior policy advisor at the International Energy Agency (IEA), will provide an outlook for CHP in Europe. The PEP-Net project will be presented and country overviews of Italy and France will be given. Please note that participation is only open to COGEN Europe members. In case you are interested, please contact as soon as possible Stefan Craenen on stefan.craenen@cogen.org
04/09/2006
COGEN Challenge Newsflash
Please find here the latest COGEN challenge Newsletter. COGEN challenge is an EU-wide campaign that promotes the use of small-scale cogeneration (up to 1 MW). To this end we are developing a database with 1,000 examples of small-scale cogeneration projects, the Showcase. If you are an operator or a supplier of cogen units wherever in Europe, please add your unit in the showcase, where you can present information on your installations. To register go to the Showcase on the project website www.cogen-challenge.org. In addition, we invite small-scale cogeneration equipment suppliers and developers to register their company in the European suppliers and developers directories. Use COGEN challenge as a platform to promote your product and to get new clients by contacting Mr Stefan Craenen (email: stefan.craenen@cogen.org).
01/09/2006

Announcement of a cogeneration week in Sofia, Bulgaria on 11-15 September
COGEN Europe is co-organising a series of (biomass) CHP events that will take place in Sofia, Bulgaria during September. The Bulgarian Minister of Economy and Energy has formally agreed that these events take place under his patronage.
COGEN Vlaanderen, our Flemish national Member, organises on 11-13 September together with two technical universities the “Base Course on Cogeneration”. Required knowledge is the level of student, bachelor or master of engineering sciences, or equivalent knowledge. Please find here the flier for the “Base Course on Cogeneration”. For more information, please contact Michel Raskin on michel.raskin@cogenvlaanderen.be
On 14 September the first Regional Workshop on “Biomass CHP in Bulgaria” will take place. This is a first event in a series of workshops on biomass CHP in Europe which aim to stimulate the use of regional biomass CHP applications, inform local actors about the possibilities and potentials, and to facilitate markets for manufacturers. The opening speech will be delivered by the Bulgarian Minister of Economy and Energy and by the Minister of Agriculture and Forestry. Mr Guido de Wilt, the CHP expert of the European Commission, will also give a presentation. Please find the programme of this event here. If you are interested, please contact Mr Joep Coenen on joep.coenen@cogen.nl
On 15 September the internal COGEN Europe Working Group on “CHP from renewables” will take place. The meeting will take place at the premises of the Energy Efficiency Agency of the Minister of Economy and Energy. Please the agenda here and contact Stefan Craenen on stefan.craenen@cogen.org in case you wish further information.

28/08/2006
Biomass CHP Best Practice Guide now available
The BIO-CHP project is dedicated to the promotion of best practice biomass CHP throughout Europe. The intention is to contribute to an increased - and more efficient - use of biomass for CHP production. The project disseminates biomass CHP experience based on collected data from more than 65 existing CHP plants in Denmark, The Netherlands, Austria, Germany, Sweden and Finland. The results from the project are gathered in the "Biomass CHP best practice guide”, giving well documented operational performance data from biomass CHP plants in operation. The key findings are the following:

- Plant owners often overestimate the efficiency, which can be achieved - there are huge differences between the nominal efficiency for electricity and heat as estimated in project planning, and the performance achieved in the practical operation of the plants;

  • The internal consumption of electricity in the plants is significant, and some technologies perform better than others in this context;

- Operational stability and availability of the plants are not impressive; for some technologies it is critically low;

- Utilisation of the installed capacity is often low, either due to part load operation or to extended periods of plants being out of operation.

The “Biomass CHP Best Practice Guide” can be downloaded here from the project homepage.

23/08/2006
Announcement of the first Regional Workshop on "Biomass CHP in Bulgaria" Thursday 14 September 2006
In response to the emerging debate on renewables, COGEN Europe has set a Working Group on “CHP from renewables”. The network was established two years ago and currently consists of more than 30 European experts. Four subgroups have been set up (support schemes, standardisation, technology development and information/communication), good working relations with stakeholders (e.g. the European Commission) have been established and events have been organised (e.g. the “European Biomass CHP Conference 2006” in January 2006).

The subgroup on “Information and Communication” will organise the first Regional Workshop on “Biomass CHP in Bulgaria” on Thursday 14 September 2006 in Sofia, Bulgaria. This is a first event in a series of workshops on biomass CHP in Europe which aim to stimulate the use of regional biomass CHP applications, inform local actors about the possibilities and potentials, and to facilitate markets for manufacturers. Please find the draft programme of this event here. If you are interested, please contact Mr Joep Coenen on joep.coenen@cogen.nl.

This Workshop is being organised in conjunction with a meeting of the internal COGEN Europe Working Group on “CHP from renewables”. This meeting takes place on Friday 15 September in Sofia, Bulgaria. For more information on this meeting, please contact Stefan Craenen on stefan.craenen@cogen.org.

18/08/2006
Next meeting of the Working Group on “Small & Medium-scale CHP”
The internal COGEN Europe Working Group on “Small & Medium-scale CHP” is meeting on Friday 29 September in Paris. Mr Ulrik Stridbaek, senior policy advisor at the International Energy Agency (IEA), will also attend the meeting and provide an outlook for CHP in Europe. Next to this the leaders of the subgroups (air quality, grid connections and support schemes) will present the progress of their respective subgroup. Please note that participation is only open to COGEN Europe members. In case you are interested, please contact as soon as possible Stefan Craenen on stefan.craenen@cogen.org
16/08/2006 Another milestone reached in the COGEN Challenge campaign: the registration of the 200th small-scale CHP plant
Since the start of the COGEN challenge campaign on 7 February 2006 another milestone has been reached. By 16 August 2006 the 200th small-scale CHP unit was registered in the COGEN challenge database! At the moment this database contains an overview of CHP examples from the following 13 EU Member States: Austria, Belgium, Denmark, France, Germany, Greece, Hungary, Italy, Luxembourg, Portugal, Slovenia, Spain and United Kingdom. The aim of COGEN Challenge project is to register 1,000 small-scale cogeneration units.
If you are curious to know which ones are already listed, just have a look at the database, which provides information on cogeneration installations in buildings as diverse as single family house, hospitals, industrial sites and many others. If you have not yet registered your small-scale CHP Unit, please click here to register your project.
For more information on the
COGEN challenge  campaign, please contact Stefan Craenen on stefan.craenen@cogen.org
30/07/2006 Next meeting of the Working Group on “CHP from renewables”
The COGEN Europe Working Group on “CHP from renewables” is meeting on Friday 15 September in Sofia, Bulgaria. An overview of the national biomass CHP situation in Bulgaria will be presented and the leaders of the subgroups (support schemes, standardisation, technology development and information/communication) will discuss the progress of their respective subgroup. Please note that participation is only open to COGEN Europe members. In case you are interested, please contact as soon as possible Stefan Craenen on stefan.craenen@cogen.org
The reason for the choice of this location is the fact the Working Group’s Subgroup on “Information and Communication” will organise on Thursday 14 September the first Regional Workshop on biomass CHP in Sofia, Bulgaria. This is a first event in a series of workshops on biomass CHP in Europe which aim to stimulate the use of regional (biomass) CHP applications and inform local actors about the possibilities and latest developments. Please note that this event is also open to non-COGEN Europe members. More information will follow. If you are interested, please contact Mr Joep Coenen on joep.coenen@cogen.nl
04/07/2006 Registration of 100th small-scale CHP Plant
An important milestone since the launch of the COGEN challenge  campaign on 7 February 2006 has been reached. In the beginning of June the 100th small-scale CHP unit was registered in the COGEN challenge  database! At the moment this database contains an overview of CHP examples from ten countries (Austria, Belgium, Denmark, Germany, France, Hungary, Italy, Portugal, Slovenia and Spain).
The aim of the COGEN challenge  project is to register 1,000 small-scale cogeneration units (up to 1 MW) in the database on the website, the Showcase. If you are curious to know which ones are already listed, just have a look at the database, which provides information on cogeneration installations in buildings as diverse as single family house, hospitals, industrial sites and many others.
Click here to register your small-scale project in the Showcase.
04/07/2006

COGEN Challenge Newsflash
Please find the latest
COGEN challenge Newsletter (in English and in Spanish).
COGEN challenge is an EU-wide campaign that promotes the use of small-scale cogeneration (up to 1 MW). To this end we are developing a database with 1,000 examples of small-scale cogeneration projects, the Showcase. If you are an operator or a supplier of cogen units wherever in Europe, please add your unit in the showcase, where you can present information on your installations. To register go to the Showcase on the project website www.cogen-challenge.org
In addition, we invite small-scale cogeneration equipment suppliers and developers to register their company in the European suppliers and developers directories. Use
COGEN challenge as a platform to promote your product and to get new clients by contacting Mr Stefan Craenen (email: stefan.craenen@cogen.org).

28/06/2006 Germany approves final draft phase-two Nap
Germany has approved its phase-two national allocation plan (NAP) for the second phase of the EU emission trading scheme on Wednesday 28 June.
The NAP requires greater cuts in carbon dioxide emissions than previously expected.
The plan sets an annual cap of 482m tonnes of CO2 for the more or less 1,000 German companies covered by the scheme.
Power utilities will carry the impact of the cuts. Consequently, allocations to power firms will be 15% lower than in the first phase-one (2005-2007), those to other sectors will be 1.25% lower. Germany’s NAP would ensure that it meet its Kyoto target, which is a 21% cut in CO2 emission by 2008-2012 against 1990 levels.
28/06/2006 Most EU member states will miss the phase-two Nap deadline
Several EU member states will fail to meet the deadline to submit their phase-two national allocation plans (NAPs) for the EU emission trading scheme to the European Commission on Friday.
In the first phase, only 5 out of 15 EU member states were on time, while in phase-two only two countries are expected to submit their NAP by Friday, namely Germany and Estonia.
The UK, Denmark, Finland, Ireland, Luxembourg and Latvia said they will be late, while Spain announced a delay of two weeks and Slovenia hoped to submit a plan by September.
The June legislative elections in the Czech Republic elections have meant the NAP issuance has been severaly delayed.
For the Netherlands, France and Belgium public consultations will only finish in July.
Austria, Hungary, Italy and Sweden had hoped to meet the deadline but were expected to be late.

The European Commission has frequently insisted it will not accept delays. Timely submission and approval of the NAPs is important to allow the second phase (2008-2012) of the EU ETS to advance as intended, providing clarity for industry on the emission cuts they are expected to make.
16/05/2006 COGEN Europe releases Position paper calling for better treatment of cogeneration under the European Emissions Trading Scheme
In its Position Paper COGEN Europe calls for the fair treatment of cogeneration installations and urges Member States to use the best practices that have already been identified in phase-1 national allocation plans.
COGEN Europe and its Members call on Member States to ensure that efficient cogeneration installations are not hit by an under-allocation of carbon allowances under the second phase of the ETS, which is due to begin in 2008, but for which the allocation plans are already on the drawing boards throughout Europe.
Verified emissions data shows that there was an over supply of at least 63 million allowances in 2005, while installation-level information indicates that coal-fired plants with efficiencies of under 40% have been able to sell extra allowances for a profit. This is not acceptable, especially when high efficiency cogeneration plants have had to buy emission allowances to comply with the ETS. This is clearly contrary to the spirit of the ETS Directive.

You can download the COGEN Europe Position Paper by clicking here.
You can download the COGEN Europe Press release by clicking here.

16/05/2006 EU emissions trading scheme delivers first verified emissions data for installations
On 15 May 2006, the European Commission released the 2005 carbon dioxide (CO2) emissions data and compliance status of more than 9,400 installations covered by the EU Emissions Trading Scheme. For four Member States, Cyprus, Luxembourg, Malta and Poland, no information has been received as their emission allowance registries are not yet operational.
By the compliance deadline of 30 April 2006 some 8.980 installations have fulfilled their obligations with regard to reporting 2005 emissions. These installations account for more than 99% of allowances allocated.

Verified emissions data from 21 of the 25 Member States in the European Union show that in 2005 the trading sectors emitted 63.6 million tonnes less than they were allocated for that year.
Excluding data from new entrants, the 21 Member States with active registries have allocated an annual average of 1,829.5 million allowances to installations in the scheme's first trading period, covering 2005 to 2007. The trading sector emitted 1,785 million tonnes during 2005 and was allocated 1,848.6.


Germany: towards stricter caps
Just 5 countries applied a cap that came in below actual emissions; Austria, Ireland, Italy, Spain and the UK. In contrast, Germany is considering introducing a stricter cap in the second phase NAP, following the 21-million surplus for 2005.
In the current German draft of the second phase national allocation plan, power generators are facing a reduction on their emissions of 15 per cent, industrial emitters of 1.25 per cent only.
In a more detailed report on by DEHSt, 67 per cent of participating facilities had enough or even more allowances than required. The surplus of allowances for energy producers was 9.5 million tonnes or 2.5 per cent of the amount received. With energy-intensive industries, the surplus was about 11.1 million tonnes.
Germany's environment minister Sigmar Gabriel said in a statement that 9 million tonnes of the surplus were due to actual emissions reductions in the country, while 12 million of the surplus was due to the special rules in the German allocations plan, causing an over-allocation.
Germany's NAP allows for ex-post adjustments of allowances, and according to Gabriel the extra 12 million tonnes will not enter the market if Berlin is allowed to keep this provision. Currently Germany is locked in a legal battle with the European Commission, as the EC has dismissed the use of ex-post adjustment in NAPs.
11/05/2006 EU Energy Efficiency Directive 2006/32/EC
The European Parliament and the Council of the European Union have published a directive on energy end-use efficiency and energy service. The directive 2006/32/EC has been published in the Official Journal of the European Union on 24 April 2006. The directive will enter into force on the 20th day following its publication in the Official Journal. The full text of the Directive can be found here.
11/05/2006 COGEN Europe will have a stand at POWER-GEN 2006 in Cologne from 30 May to 01 June.
Simon Minett, Thomas Bouquet, Stephan Craenen and Anna Limbrey welcome you to the COGEN Europe stand L12.
11/05/2006 Commission to release 2005 emissions data at 08.00 on 15 May
The European Commission is to release aggregated verified emission reports for member states at 08.00 CET on 15 May.

The European Commission will issue a press release as well as publish the information in the Community Transaction Log providing a snapshot of verified emissions reports as of 30 April, the date for companies to surrender their allowances in accordance with their verified emission reports.
The release of information is likely to have an impact on the carbon market with the percentage of verified emissions reports giving a clear indicator of how long or short the emissions trading scheme was in 2005.
The data is not believed to include verified emissions reports from countries without a full functioning national registry. Some countries are missing data for example Poland with the second larges allocation in the scheme whose data will not be available.
11/05/2006 EC to rethink 6 per cent cut for phase two NAP's
The European Commission may reconsider theoretical cuts in member states' national allocation plans for phrase two following the publication of 2005 verification date, a Commission official told the Carbon Expo conference in Cologne.

The Commission, which published phase two allocation guidance on 22 December last year, had initially said it would be looking to cut phase one national allocation plans by six pert cent. However, in the light of verified emissions data released by the Netherlands, Czech Republic, France and Spain all showing lower than expected emissions, the Commission has hinted that it may rethink its strategy.

"For the emission reductions that have been released to date, it does seem that from the market's reaction they were lower than anticipated. We will require comments on how to intertwine 200-12 NAP guidance that we have published and what it says about at 6 per cent reduction from NAP1 to NAP2 being anticipated. That would need to be married together with what we now have from the 2005 data." EC official Olivia Hartridge told.

12/04/2006 COGEN Europe project GenDis
COGEN Europe is partner in the Community funded FP6 project GenDis that aims to analyse the impact of distributed generation of electricity networks from an SME perspective. A detailed pre-normative study of the problem has been undertaken and the project team currently looks into the issue of metering, in order to measure two-way flow fairly. At a later stage lab- and full-scale trials will determine the effect of embedded loads on model distribution networks and a model distributed grid will be constructed to test proposed solutions. Another outcome of the project is a structured training package to disseminate the results to SMEs. In case you want to get more information, please visit the project website or download the project brochure.
10/04/2006 COGEN Europe represents ELEP Project @ "SmartGrids - Electricity Networks of the Future" Conference in Brussels
COGEN Europe disseminated the latest ELEP (European Local Electricity Production) Project deliverables on Interconnection Rules and Connection Charging at the SmartGrids Technology Platform Conference.

Given the focus of the Technology Platform on integrating both large centralised generators and smaller distributed power sources to provide consumers with a highly reliable cost-effective power supply, ELEP's activities and results were of interest to many participants. The material available for dissemination (in particular European Policy Recommendations on Interconnection rules and connection charging for decentralised generators) was quickly taken up by delegates.

For more information on ELEP, click here.

Key elements of the SmartGrids future vision include:
Compatibility of the electricity network with new forms of energy resources and carriers
Use of innovative techniques to increase the overall system efficiency
Use of information and communication technologies to develop new services and innovative markets.
Science and Research Commissioner Janez Potocnik, also present at the event, reiterated the EU Commission's vision of a single European grid.

For more on SmartGrids, click here
06/04/2006 Report of the European Biomass CHP Conference 2006
Following the recent publication of the Biomass Action Plan (COM 2005, 628) and the final phase in the discussions on the implementation of the Directive on CHP (2004/8/EC), COGEN Europe organised with the support of the DG Energy and Transport of the European Commission the European Biomass CHP Conference 2006 in Brussels.

Both European Commission policy initiatives should provide a fresh stimulus for the wider and greater use of bio-energies across Europe. The potential is huge and with increasing prices for fossil fuels and security of supply currently high on the EU agenda, the opportunities are more urgent and attractive for investors. COGEN Europe intends to gather momentum for biomass CHP as an environmentally-friendly and energy-efficient conversion technique that has the potential to bring many benefits to society, markets and environment.

An increased uptake of biomass CHP can contribute to achieving strategic EU energy goals, such as energy efficiency, security of supply and the reduction of CO2 emissions. The many solutions to the regulatory, market and R&D barriers, as identified during the Conference, can help the issue move forward, improve the market conditions for biomass CHP and thereby increase the competitiveness of Europe's energy industries.
Please click here for the conference report, summary and press release
22/03/2006 COGEN Europe issues official response to the Green Paper on energy efficiency
COGEN Europe has issued its official response to the Green Paper on energy efficiency. “By identifying the promotion cogeneration as one key measure for making Europe more energy efficient, the Green Paper represents a good analysis of the current situation. The fact that with a share of only 10% of electricity generation the use of cogeneration is far below the Community target of 18%, highlights the need not only to implement the Cogeneration Directive in a rigorous manner, but to complement this piece of legislation with a set of flanking measures”, Frank Knecht of COGEN Europe says.
In order to exploit the potential of the cogeneration sector fully to contribute to overall energy efficiency, the European Union and the Member States should focus on five main areas:

The rigorous implementation of the Cogeneration Directive
The establishment of cost-effective support mechanisms
The creation of a fair market framework for independent producers of heat and power
The launch of long-term information campaigns on cogeneration
The wider use of voluntary agreements with the industry

Please click here for the full text on the COGEN Europe position paper

16/03/2006

Next meeting of the Working Group on “CHP from RES”
The internal COGEN Europe Working Group on “CHP from RES” is meeting on Monday 24 April in Hannover. Mr Andreas Heinz (European Commission), responsible for the Biomass Action Plan, will attend the meeting. Next to this there will be an overview of the biomass CHP situation in Germany, a presentation of the new bio-plant of Wärtsilä in the Ardennes and the leaders of the four subgroups (support measures, standardisation, technology developments and information/communication) will present the progress of their resp. subgroup. Please note that participation is only open to COGEN Europe members. In case you are interested, please contact Stefan Craenen.
For those who are interested, please note that on Tuesday 25 April the International Biomass CHP Conference at the Hannover Fair 2006 takes place. This one-day, free-of-charge event is titled “The Highly Efficient Use of Biomass in CHP Plants - Experience, Potential and Recommendations” and is co-organised by Mr Adi Golbach from BKWK, the German national member of COGEN Europe. Mr Michel Raskin, the chair person of the Working Group, will deliver a speech at this event. For more information, please contact Adi Golbach

10/03/2006 Green Paper on EU energy policy
On Wednesday 8 March 2006 the European Commission presented the Green Paper on “A European Strategy for Sustainable, Competitive and Secure Energy”. Since Green Paper on Security of Supply (2000) worked has progressed but given recent developments a new impetus is needed for a comprehensive European energy policy. The most fundamental question is whether there is agreement on the need to develop a new, common European strategy for energy, and whether sustainability, competitiveness and security should be the core principles to underpin the strategy. Therefore Commission proposes that a Strategic EU Energy Review will be presented to the Council and the EP on a regular basis.
mportant issues in the document are the urgent need for investment, the increasing dependency on imports so domestic energy should be made more competitive, the high energy prices are probably here to stay – but also offer a drive towards energy efficiency and innovation, address the climate change issue and the aim for fully competitive internal energy markets (lower consumer prices, develop interconnections, consolidation should be market driven).The Green Paper identifies 6 key areas for action:
1. Competitiveness and the internal energy market
2. Solidarity between Member States
3. Diversification of the energy mix
4. Climate change
5. A strategic European energy technology plan
6. Coherent external energy policy.
Please find the Green Paper here.
10/03/2006 COGEN Hungary annual conference
The annual conference of COGEN Hungary took place in Visegrád, just north of Budapest on 7-8 March. The conference was attended by some 175 persons. There was a lot of attention on the first day to the EU Directive on cogeneration and its implications for Hungary. Simon Minett attended from COGEN Europe and delivered a speech entitled “Moving forward – using the Cogeneration Directive to achieve long term growth”. Over the past 5 years Hungary has been an interesting market for CHP with its share of electricity production rising from 9% in 2000 to 20% today. Much of this growth has come from gas engine CHP installed on District Heating networks. More details of the conference and the work of COGEN Hungary can be found on their web-site www.mket.hu
17/02/2006 COGENchallenge project is IEEA Project of the Month
The Intelligent Energy Executive Agency gave the COGENchallenge project "Project of the Month" honors in its quarterly newsletter. This coincides with the launch of the COGENchallenge information campaign on small-scale cogeneration.
COGENchallenge, which is lead by COGEN Europe, aims at raising awareness for micro and small-scale cogeneration. The web-based information campaign will gradually build up an on-line showcase of 1,000 small-scale cogeneration installations from around Europe to demonstrate the reliability and adaptability of this technology.
Owners, operators and suppliers are invited to include their unit by signing up for the campaign.
For more info on the COGENchallenge Website click here
Contact the coordinator: Stefan Craenen
For more info on the IEEA Intelligent Energy News click here
17/02/2006 COGEN Europe present at DG Competition Energy Sector Inquiry public presentation
Following the release of the investigation's preliminary findings in November 2005 and a day ahead of the publication of a 200-page preliminary report, The European Commission gathered European gas and electricity sector stakeholders, unveiling the probe's main findings and indicating what the new steps could be.
The Energy Sector Inquiry -which is lead by DG Competition- has been actively assessing the market distortions plaguing the European gas and electricity markets and has identified five problematic areas:
Concentration of market power
Vertical foreclosure
Lack of market integration
"Endemic" lack of transparency
Unsound price formation mechanisms


In the first keynote speech, EU competition commissioner Neelie Kroes, despite signalling that intention was to give a "general ward of warning", threatened to "use her tools to the full" and was considering launching individual anti-trust investigations within the coming weeks or months that would set "valuable precedents" for the sector.
While the full implementation of existing EU legislation appeared as a key focus of the Commission for the months to come, with a review of member State implementation in 2006, Commissioner Kroes said the sector could expect greater transparency obligations and a push towards full structural unbundling, along the Dutch model.
The many stakeholders invited to speak all underlined the urgency of the situation and urged the Commission to take transitional measures. Mr Gert van Ingen, COGEN Europe Chairman and CEO of Akzo Nobel Energy thus called for "brave actions in the next few months, especially for consumers".
The difficulty of balancing the urgency of the need for action and the necessity to consult widely and carefully examine current market structures was apparent throughout the day.
Energy Commissioner Piebalgs indicated that a decision would be taken at the end of 2006 as to whether or not new legislation would be forthcoming or not. He also announced that several infringement procedures would be launched against three unnamed Member States for not correctly transposing and implementing the Electricity and Gas Directives.

For further information, please visit the EU Commission's Energy Sector Inquiry webpage here

14/02/2006 Eurostat releases 2002 CHP statistics for the EU-25
Eurostat, the statistics arm of the European Commission, has published CHP statistics for the EU-25 in 2002 in the March 2006 issue of "Statistics in Focus - Energy and Environment".
The publication can be downloaded here.
09/02/2006 Germany considering auctioning CO2 emission allowances
The German government, in an attempt to curb windfall profits for electricity utilities, is considering auctioning a yet undetermined amount of emission allowances in the second phase of the European Emissions Trading Scheme.
Electricity consumers in Germany have consistently complained that utilities have been factoring in the carbon price to the price of electricity sold to end consumers while receiving allowances for free, thereby damaging industrial competitiveness and going against the spirit of the emissions trading scheme.
06/02/2006 Potentials for energy efficiency in Eastern Europe and CIS
With the support of the United Nations, the Energy Efficiency 21 (EE21) project ‘Energy Efficiency Investments for Climate Change Mitigation’, has demonstrated that it is possible to identify, develop and finance energy efficiency and renewable energy investment projects that will reduce greenhouse gas emissions in Eastern Europe and the CIS. The potential for energy efficiency in this region is large as their inefficient and polluting energy systems are glaring economic and environmental problems. They provide some of the most promising self-financing opportunities to reduce global greenhouse gas emissions. With only 6 per cent of the world’s population, these countries produce some 12 per cent of greenhouse gases. The investment potential in Eastern Europe for energy efficiency projects with a payback period of less than five years is estimated to be between US$ 5 and US$ 10 billion. More information can be found here.
03/02/2006 European Finance Ministers open way for reduced VAT on district heating
European Finance Ministers meeting in Brussels on Wednesday agreed to include district heating to the list of sectors eligible for reduced VAT rates. Under the European Union's sixth VAT Directive, Member States were already able to apply reduced VAT rates of up to 5% for electricity and gas. The French and Portuguese CHP and district heating sectors stand to benefit most for this change as both countries levy high VAT rates on district heating.
The inclusion of district heating in the option provided for by Article 12 (3)(b) of the 1992 VAT Directive is an important victory for the European cogeneration sector as a whole and will help increase activity in several countries once governments implement the change.
23/01/2006 COGEN presents its Position Paper on the EU Action Plan on Biomass
On 7 December 2005 the Energy Commissioner Andris Piebalgs presented the Biomass Action Plan that aims at more than doubling the use of biomass energy for electricity, heating and transport by 2010. Biomass offers a vast potential for future energy generation, although the biomass share among the RES has not substantially increased over the recent years. COGEN Europe welcomes the EU efforts to increase the biomass contribution in the RES debate. With the issue of its Position Paper COGEN Europe wants to inform the broader public of its view on the valuable role biomass cogeneration should play in the Biomass Action Plan. We believe that biomass in combination with cogeneration should be the first choice whenever a suitable heat demand and supply of biomass fuel are available.
Position Paper on the EU Action Plan on Biomass
13/01/2006 European industry calls for the implementation and expansion of the Buildings Directive
Today, a group of seven European industry associations issued a joint statement on the future of the Energy Performance of Buildings Directive. Co-signed by COGEN Europe, the statement calls for full and rapid implementation of the Directive by all Member States. Moreover, the signatories call for expanding the scope of this piece of European legislation. Key amendments to the current Directive should be:


Inclusion of existing buildings below 1,000 square metres
Extension of inspection requirements
Higher standards for public buildings
 

The Buildings Directive was adopted by the European Parliament in December 2002 and should have been transposed into national law by the beginning of this year. According to estimations by the European Commission, the rigorous implementation of the Directive across the EU-25 could lead to annual energy savings in the magnitude of 41 Mtoe. With additional measures, annual energy savings of up to 70 Mtoe are possible within the next 15 years, the Commission says.

“The Buildings Directive is one of the main pillars of European policy for the promotion of cogeneration. However, due to the delays in implementation, this Directive has yet to deliver any real improvements in the market”, Frank Knecht of COGEN Europe says. “In addition, due to the current limitations four fifths of the potential market is not covered yet.” Technologies that would benefit from an expansion of the Buildings Directive are in the micro- and small-scale segment of the market, such as internal combustion engines, Stirling engines, micro-turbines and fuel cells.

Joint industry statement

09/01/2006 Europe could more than double the use of biomass for energy purposes, Austrian Presidency says
The Austrian Presidency starts with prioritising the EU Action Plan on Biomass. The President of the EU Agriculture Council, the Austrian Minister for Agriculture and the Environment, Mr Josef Pröll, has put the action plan as the first item of the next Council meeting agenda on 23 January 2006. “As a leader in the use of alternative energy sources, Austria has a particular responsibility in this context”, the minister said. He also stated that in the coming four years alone, Europe could more than double the use of biomass for energy purposes.

The Council discussions of the EU Action Plan on Biomass coincide with the Biomass Conference organised by COGEN Europe at the same day. This conference is aimed at informing a wide range of stakeholders about the latest developments on the European level, as well as channelling the input of the business community the decision-makers in Brussels. Speakers of the conference include Ms Mechtild Rothe (MEP), Mr Claude Turmes (MEP), Mr Andreas Heinz (European Commission), and Mr Michel Raskin (Chairman of the COGEN Europe working group on renewables).

Austrian Presidency press release

Biomass Conference website