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CODE2 Cogeneration Observatory and Dissemination Europe 2

WP3: “How-to” guides for industry

Jozef Stefan Institute (JSI)Stane Merše

Head of Energy Efficiency Centre JSI

Kick-off project Meeting 10 - 11 July 2012, Brussels

10/07/2012 JSI

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WP 3: “How-to” guides for industry

Key purpose of the WP:“Increasing the overall understanding of financial proposition of

cogeneration technology in different applications among businesses policy makers and stakeholders.”

Main issues which need to be addressed in developing the business case for CHP:o The key elements to consider in the developing the business case.o Best practice case studies showing how the elements were taken into

consideration.o Special emphasis will be given to SMEs, where current knowledge is limited and

CCS applications will not be feasible mainly due to economic reasons

• Deliverables:• D 3.1: Tested “How-to” guides for 4 key market sectors

• D 3.2: 30 best practice cases on CHP in 4 target sectors09/09/2009 2

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Purpose of the“How-to” guides “In order to expand the cogeneration in Europe, a large number of organisations who currently use significant quantities of energy for heat, need to be attracted to join the cogeneration sector.”Answering the key first questions to the potential heat consumers:

o Is this economically a good proposal?o What benefits is ofering cogeneration to me?o What is the best business model for implementaion?

Is a tool for streamlining the initial project engagement stage of a new CHP project and in formulating the business proposition for the new owner:

o will provide enough information for an interested potential cogeneration operator to assess the business opportunity and risk of moving into cogeneration.

oDemonstration of best practice case studies

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Target sectors

4 Guides for top 4 expansion sectors: o food,opaper,ohospitals ando commercial premises

Shall we adopt/change also to: Market sectors highlighted in the individual Roadmap proposal for 7 MS? Micro CHP – households? ?

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2T1: Cheklist for “How-to” guides

Guides Should be:o Short and focused on the main issues which need to be addressed in developing

the business case for CHP (5 pages)o Consist of three sections:

1. The key elements to consider in the developing the business case2. Best practise case studies showing how the elements were taken into

consideration3. Sources of the information needed to calculate the business case

including Member State support, regional and local support and sources of information.

Create a walk-through example of developing a standard project for the top 4 expansion sectors giving examples of typical costs and timescales for each step and highlighting the key elements which must be understood to properly establish a business case and understand the risk.

Prepare best practice case studies identifying national benchmark CHP installations for sector reference

Identify main national sources of information and key points of contact for professional assistance, authorisation, permitting, finance, etc. (incl. EED)10/07/2012 5

2T2: Develope the 4 “How-to” guides

Inovative and ilustrative approach!– Overview of available similar tools (linking on other IEE projects, etc.)– The experience of BEA in its successful work in communication to customers in

Berlin will be used.– The guides will be market tested:

• with the trade associations of each market sector to ensure that using the guide the target customer can be successfully addressed and reached:

Key information for understanding:– Financial implications of the investment in and the running of a cogeneration plant

both initially and over the lifetime of the project– Energy savings and CO2 impact of cogeneration investment.– Implications of national legislation regarding their cogeneration plant investment– Their options in financing/running a plant themselves or inviting a third party to do

so (TPF, business models, etc.)– Know-how to take their initial purchase interest further

A lot of information – proper focus and shaping crucial for the success!10/07/2012 6

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T3: Best practice cases

• Additional 30 best practice cases for the 4 market sectors per region– To highlight the elements relevant to the

business case success and to link clearly to the relevant elements of the road map.

– Case study sites will be encouraged to take an active part in the ongoing CODE2 process (visits, exchange of information and data, etc.)

– Continous activity from CODE :• Ongoing also after the end of the project• Update of the web presentation,…

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Most interesting casese – mobility with CHP, Belgium – 42% of primary energy savingsHybrid “RES&CHP” plant – gas engine & sollar collectors in GreeceRES island supply - Biogas CHP plant from pig waste in Cyprus

First trigeneration plants UK, GreeceRepseed oil CHP – engine, BelgiumDistrict heating and cooling, ItalyRetrofit of coal CHP plant with biomass cofireing, district

heating Warsaw, PolandTPF CHP projects

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2 T4: Translation and adaptation of the “How-to” guides

The guides will be translated and adapted into the economic and legislative environment of the 15 National COGEN Associations:– Each guide will be reviewed by the national association and both

general statements and specific recommendations (modified according to the local energy history and economic situation).

– Will be consulted locally to verify that the resulting guide fits the local situation.

– Dissemination: upload of guides onto different website, distribute them among their members/contacts or use it as a basis to organise a workshop in their country for industry, SMEs (contractors, project developers, small users) and bio-energy industries.

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Implementation

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Partner Task(s) for this partner organisation Related to Task N° JSI WP leader

Develop checklist with input from partners All tasks 1

All Partners Dialogue with national experts Review and editing

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COGEN Contribute to the checklist Evaluate the effectiveness of the guide with their trade associations and four companies in the sector Contribute to the guide Adding best practice cases to online database Translation and adaptation of guides

1 1 2 3 4

HACHP, JSI, FAST, CVL, B.KWK

Development of concept of guide Contribute to collecting best practice cases Disseminate guides to SMEs

2 3 4

BEA, EM Identify and assess the best practise cases in 2 target industries with input from other partners Prepare the best practise cases for publication Identify benchmarking sites for visits

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Next steps• Preparation of detailed working concept and

plan (JSI)– Final discussion with involved responsible partners– End of September 2012

• All ideas from consortium welcome!

Thank you for your attention!

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