Cogeneration in Europe

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1 Cogeneration in Europe A brief analysis of the latest Eurostat data (reference year: 213) Brussels, 2 October 215 The European Commission published on 29 June 215 the EU-28 CHP statistics for the year 213. The statistics report in quantitative terms the evolution of the CHP sector per country and at EU level. CHP statistics should be viewed in the broader context of the overall energy sector, as some trends in total electricity and heat statistics (both CHP and non-chp) help to understand developments in the CHP sector. Setting the scene: Total electricity and derived heat statistics from all sources (CHP and non- CHP) in 213 Looking at the power sector as a whole between 212 and 213: Final consumption of electricity decreased slightly; all fuels, except renewables, generated less electricity, and; within the renewable fuels category and in absolute terms: hydropower, PV, wind and biogases installations lead the league table. While for wind and PV this is mainly due to an increase in installed capacity, for hydropower, weather conditions and utilisation rate were the most likely drivers for growth. 1 Figure 1: Electricity Production by fuel in EU-28,

2 Similar trends are observable in the derived heat statistics: Stable overall production of heat; Fossil-based heat production has largely been decreasing, and; visible increase in renewable heat, though at a lower rate than in the case of renewable electricity. Figure 2: Derived heat by fuel in EU-28, CHP statistics in 213 In this context, the cogeneration market stagnated at EU level in terms of both the cumulative capacity and electrical output. While installed electrical capacity increased slightly from GW to GW, the amount of cogenerated electricity decreased marginally from 387 to 382 TWh between 212 and 213. Countries where CHP electricity production significantly increased between 212 and 213 include Denmark, Bulgaria, Italy, Latvia and Portugal, while substantial reductions in cogenerated electricity were reported in Spain, France, the United Kingdom, Hungary, Croatia and Greece. CHP s share in gross electricity production remained unchanged between 212 and 213 at 11.7%. When looking at the electricity production split by fuels as well as CHP vs. non-chp, 6% and 53% of the overall electricity generated from bioenergy and natural gas respectively were produced in cogeneration plants. With regard to the heat part of the CHP market, there was a drop in heat capacity and more substantially in heat output. Countries where CHP heat production significantly increased between 212 and 213 include Latvia and Sweden, while a significant reduction in cogenerated heat was reported in Spain, Germany, France and Austria. No analysis has been performed by the COGEN Europe secretariat to investigate possible correlations with the winter seasons of 212 and 213 and the change in industrial production. The most dynamic year-on-year trend was represented by renewable CHP growth, as renewable fuels continued to gain ground in the CHP fleet, reaching 18% of the fuel input in 213 up from 16% in 212.

3 GW GWe Below you will find several graphs capturing these trends in more detail. The data is available here and here. A) Installed capacity of high-efficiency CHP 1 : 16 CHP installed electrical capacity in EU* (25-213) * EU-27 between and EU- 28 as of 212 ** Incomplete data, due to absence of German statistics for Year 8 Installed CHP capacity by EU country in CHP Electrical capacity 3 CHP Heat capacity 2 1 Country 1 Source: COGEN Europe, based on European Commission, Eurostat, 215. Data retrieved from: af e12233

4 TWh TWh B) Cogenerated electricity & heat, and CHP share of total electricity production 2 : Generated electricity and heat in CHP plants (25-213) Year 14% 12% 1% 8% 6% 4% 2% % Electricity production (left axis) Heat production (left axis) CHP share in electricity production (right axis) Cogenerated electricity and share in total electricity production by country in 213 CHP electricity generation (left axis) Share of CHP in total electricity generation (right axis) 9% 8% 7% 6% 5% 4% 3% 2% 1% % Country 2 Source: COGEN Europe, based on European Commission, Eurostat, 215. Data retrieved from: af e12233 and:

5 C) Fuel mix 3 : Penetration of the cogeneration principle by fuel: EU average in 213 Renewables (biofuels, biomass, biogas) Natural gas and derived gases Waste non-renewable Oil and petroleum products Solid fuels Nuclear % 2% 4% 6% 8% 1% CHP non-chp CHP fuel mix in EU-28 (213) Oil and oil products 4% Other fuels 12% Renewable sources 18% Natural gas 45% Solid fossil fuels and peat 21% 3 Source: COGEN Europe, based on European Commission, Eurostat, 215. Data retrieved from: af e122

6 Fuel input in PJ Year CHP fuel mix evolution in the EU (25-213) Natural gas Solid fossil fuels and peat Renewable sources Oil and oil products Other fuels 25 % 2% 4% 6% 8% 1% 1,4 CHP fuel mix by country (213) 1,2 1, 8 Other fuels Oil and oil products Renewables 6 Solid fossil fuels and peat Natural gas 4 2 Country

7 Notes on European statistics: 1. Between 212 and 213 there appears to have been a significant increase in the main activity producer share at the expense of auto-producers. In 212, the distribution was at 58-42%, while by 213 this distribution had shifted to 67-33%. This appears to be due to significant changes in how the classification is applied in Spain, Ireland and Cyprus, which may not reflect actual changes in the field. 2. The data reported for some countries does not capture growing segments of CHP like small-scale CHP (e.g. in Germany, the cumulative capacity of below 1 MW electrical output CHP plants is well over 1 GWe, but this is not captured in the national statistics). 3. It is worth highlighting that the quality of Eurostat statistics is improving; however Eurostat relies on data collected from national statistical offices and therefore quality depends on member-state data, including on how cogeneration is reported from country to country. Therefore for some countries, there are still open questions as to whether the figures attributed to CHP plants refer to electricity and heat cogenerated in high-efficiency cogeneration mode or if they include all CHP generation irrespective of the efficiency level or mode of operation. Nevertheless, the Eurostat statistics provide invaluable information on where the CHP sector stands and the trends being seen. 4. Based on legal provisions contained in the Energy Efficiency Directive 212/27/EU, Eurostat and DG Energy have started to collaborate in requiring member states to submit better quality CHP statistics as of Eurostat will update national datasets whenever it receives evidence of the need to do so. Should COGEN Europe members identify discrepancies between the Eurostat data and the national statistics, please inform COGEN Europe.

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