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Cogeneration: a key player in an Integrated Energy System Araceli Fernández International Energy Agency (IEA) COGEN Europe 18-19 April 2013 COGEN Europe Annual Conference 2013 © OECD/IEA 2013

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Page 1: Cogeneration: a key player in an Integrated Energy System...Cogeneration provides an efficient technical solution which can benefit from local energy sources (waste, biomass, geothermal)

Cogeneration: a key player in an Integrated Energy System

Araceli Fernández

International Energy Agency (IEA)

COGEN Europe 18-19 April 2013

COGEN Europe Annual Conference 2013

© OECD/IEA 2013

Page 2: Cogeneration: a key player in an Integrated Energy System...Cogeneration provides an efficient technical solution which can benefit from local energy sources (waste, biomass, geothermal)

Overview

Why boost Energy Efficiency?

Let’s think on Systems Integration

Cogeneration: a key player in an Integrated Energy System

What is the IEA doing on CHP?

COGEN Europe 18-19 April 2013

COGEN Europe Annual Conference 2013

© OECD/IEA 2013

Page 3: Cogeneration: a key player in an Integrated Energy System...Cogeneration provides an efficient technical solution which can benefit from local energy sources (waste, biomass, geothermal)

Why boost Energy Efficiency? (I)

COGEN Europe 18-19 April 2013

COGEN Europe Annual Conference 2013

0

100

200

300

400

500

600

1971 1980 1990 2000 2009

EJ

Total primary energy supply

World OECD Non-OECD

0

5

10

15

20

25

30

1971 1980 1990 2000 2009

Gt

CO

2

Energy-related CO2 emissions

Energy Efficiency helps:

Limit energy demand growth

Reduce energy imports

Mitigate pollution

Source: IEA, ETP 2012

© OECD/IEA 2013

Page 4: Cogeneration: a key player in an Integrated Energy System...Cogeneration provides an efficient technical solution which can benefit from local energy sources (waste, biomass, geothermal)

Why boost Energy Efficiency? (II)

Improving EE could lead to:

COGEN Europe 18-19 April 2013

COGEN Europe Annual Conference 2013

A more efficient allocation of resources – effectively boosting global economic output to 2035 by USD 18 trillion.

A reduction of more than USD 17.5 trillion in fuel expenditures and a USD 5.9 trillion decrease in supply-side investment…more than offsetting the global USD11.8 trillion investment required to achieve an efficient world.

Source: IEA, WEO 2012

© OECD/IEA 2013

Page 5: Cogeneration: a key player in an Integrated Energy System...Cogeneration provides an efficient technical solution which can benefit from local energy sources (waste, biomass, geothermal)

How to realise Energy Efficiency?

COGEN Europe 18-19 April 2013

COGEN Europe Annual Conference 2013

By learning and tracking EE through Implementation of EMS Sharing best practices and lessons learned

By benchmarking and setting EE strategic targets Promoting clusters for data collection Public-private coordination could help overcome

confidentiality issues

By improving EE affordability Create and support business models and

financing mechanisms

By improving EE economic benefits visibility

© OECD/IEA 2013

Page 6: Cogeneration: a key player in an Integrated Energy System...Cogeneration provides an efficient technical solution which can benefit from local energy sources (waste, biomass, geothermal)

Let’s think on Systems Integration

COGEN Europe 18-19 April 2013

COGEN Europe Annual Conference 2013

Centralised fuel production,power and storage

Centralised fuel production,power and storage

Renewable energy resources

EV

Co-generation

Smart energysystem control

Distributedenergy resources

Surplus heat

H vehicle2

© OECD/IEA 2013

Page 7: Cogeneration: a key player in an Integrated Energy System...Cogeneration provides an efficient technical solution which can benefit from local energy sources (waste, biomass, geothermal)

Cogeneration: a key player in an Integrated Energy System (I)

COGEN Europe 18-19 April 2013

COGEN Europe Annual Conference 2013

Cogeneration provides an efficient technical solution which can benefit from local energy sources (waste, biomass, geothermal)

District Heating & Cooling networks, as well as

compatible heat demand industrial clusters, provide a major opportunity for Cogeneration deployment

Cogeneration can help balance variable renewable energy sources

© OECD/IEA 2013

Page 8: Cogeneration: a key player in an Integrated Energy System...Cogeneration provides an efficient technical solution which can benefit from local energy sources (waste, biomass, geothermal)

Cogeneration: a key player in an Integrated Energy System (II)

COGEN Europe 18-19 April 2013

COGEN Europe Annual Conference 2013

Strategic planning to avoid missing opportunities HEAT MAPPING Where? Sources vs Sinks What? Temperature is important

Systems thinking to unveil Cogeneration potentials

Energy Policies to fill the gaps RENEWABLE AND EE POLICIES COMPLEMENTARITY

Prioritise promoting best efficient technical solution Cogeneration using biomass vs conventional

boiler using biomass

© OECD/IEA 2013

Page 9: Cogeneration: a key player in an Integrated Energy System...Cogeneration provides an efficient technical solution which can benefit from local energy sources (waste, biomass, geothermal)

Cogeneration: a key player in an Integrated Energy System (III)

COGEN Europe 18-19 April 2013

COGEN Europe Annual Conference 2013

Related data gaps Industrial Cogeneration total heat generated key

for a robust energy savings calculation Surplus heat key to assess potentials for DHC and

analyse potential associated CHP capacity requirements

Detailed cogeneration data on Non-OECD countries Location is important for Heat

High regional resolution is required to evaluate detailed heat demand potentials

Challenges to analyse Cogeneration potential globally

© OECD/IEA 2013

Page 10: Cogeneration: a key player in an Integrated Energy System...Cogeneration provides an efficient technical solution which can benefit from local energy sources (waste, biomass, geothermal)

What is the IEA doing on CHP? (I)

COGEN Europe 18-19 April 2013

COGEN Europe Annual Conference 2013

Who ? The IEA working with CHP and DHC leaders worldwide

When? Launched in 2007

Objectives:

IEA CHP/DHC Collaborative

Accelerate deployment of CHP and efficient DHC

CHP/DHC data collection and best practice sharing

Provide a forum to develop credible information and

analysis

© OECD/IEA 2013

Page 11: Cogeneration: a key player in an Integrated Energy System...Cogeneration provides an efficient technical solution which can benefit from local energy sources (waste, biomass, geothermal)

What is the IEA doing on CHP? (II)

COGEN Europe 18-19 April 2013

COGEN Europe Annual Conference 2013

Build on and advance from previous phases analysis and results

Strategy Workshop: February 2013, Paris

Close cooperation with CEM CHP and DHC Working Group

Re-engaging IEA CHP/DHC Collaborative partners

IEA CHP/DHC Collaborative relaunch Phase III (2013-14)

© OECD/IEA 2013

Page 12: Cogeneration: a key player in an Integrated Energy System...Cogeneration provides an efficient technical solution which can benefit from local energy sources (waste, biomass, geothermal)

COGEN Europe 18-19 April 2013

COGEN Europe Annual Conference 2013

A. Country CHP/DHC scorecards

Overview of CHP/DHC: national level

Technology

Market activity

Policy

Applied case studies

Policy recommendations

Country rating benchmarking

•CHP average performance •CHP capacity breakdown by size and technology type •DHC energy supply mix •High level view of expected (2-5years) market development •Policy implementation for announced targets

© OECD/IEA 2013

IEA CHP/DHC Collaborative Phase III Work Programme

Page 13: Cogeneration: a key player in an Integrated Energy System...Cogeneration provides an efficient technical solution which can benefit from local energy sources (waste, biomass, geothermal)

COGEN Europe 18-19 April 2013

COGEN Europe Annual Conference 2013

A. Country CHP/DHC scorecards

Package B – 2014 Fund raising

US

Russia

China

Brazil

Poland

Package A – 2013 Ongoing project

South Korea

Japan

Finland

India

© OECD/IEA 2013

IEA CHP/DHC Collaborative Phase III Work Programme

Page 14: Cogeneration: a key player in an Integrated Energy System...Cogeneration provides an efficient technical solution which can benefit from local energy sources (waste, biomass, geothermal)

IEA CHP/DHC Collaborative Phase III Work Programme

COGEN Europe 18-19 April 2013

COGEN Europe Annual Conference 2013

Develop a compendium of case studies: industrial CHP and integrated approaches of CHP with DHC This will be the basis for the analysis:

Identify market failures Distil lessons learned Measures to overcome existing barriers to deployment Impact of geographical conditioning

B. Analysis report: The role of CHP and DHC in the future energy system

Technology selection justification

Financing mechanisms used

Current business model

© OECD/IEA 2013

Page 15: Cogeneration: a key player in an Integrated Energy System...Cogeneration provides an efficient technical solution which can benefit from local energy sources (waste, biomass, geothermal)

IEA CHP/DHC Collaborative vision

COGEN Europe 18-19 April 2013

COGEN Europe Annual Conference 2013

Preliminary ideas: How can we more effectively boost CHP and efficient DHC deployment?

Focus on implementation

Specific deployment analysis programmes on High priority industrial sectors High priority locations / regions

Future strategy discussions at Collaborative Fall 2013 meeting

© OECD/IEA 2013

Page 16: Cogeneration: a key player in an Integrated Energy System...Cogeneration provides an efficient technical solution which can benefit from local energy sources (waste, biomass, geothermal)

For further information:

[email protected]

http://www.iea.org/chp/

Thanks!

COGEN Europe 18-19 April 2013

COGEN Europe Annual Conference 2013

© OECD/IEA 2013