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Will the Energy Efficiency Directive herald a new wave of CHP in Europe?

The world has rightly looked to Europe for CHP market leadership, but will this last?  On the 18th and 19th of April, the Delta-ee CHP research team attended the annual COGEN Europe conference in Brussels, and the mood there suggests that this leadership should continue, despite the economic slowdown.

COGEN Europe is the European association that exists to promote cogeneration and this year they are celebrating 20 years since inauguration.  Michael Brown, one of Delta-ee’s founding directors, also happens to be the founding Executive Director of COGEN Europe and the anniversary dinner on the Thursday evening  was a fitting way to look back at the achievements of the association and the wider industry since 1993.

Michael said “The European CHP market has grown strongly for decades and COGEN Europe has had a big influence on this. But the current economic environment and energy policy inertia is not helping that growth to continue.  Overall, I’d say the outlook remains positive in many European countries, but is even better in some other parts of the world”.

Since the 1990s, there has been unprecedented change in the energy industry and occasionally it has been unclear the extent to which CHP will contribute to the future energy mix within European markets. But the EU’s new Energy Efficiency Directive could herald a new wave of efficient CHP plants to meet the energy demands of residential, commercial and industry players alike.  The role of COGEN Europe will be critical in promoting this expansion, and helping member states meet targets for carbon reduction and energy efficiency to 2020 and beyond.

Paul Hodson of the European Commission, in his keynote speech, outlined plans for the Energy Efficiency Directive. Each member state is obliged to implement policies to support the EED by June next year. Ultimately, the aim is to achieve a saving of 20% of the European Union’s primary energy consumption, compared to projections, by 2020. A range of technologies are well placed to help meet this target. Advanced building fabrics, energy efficient lighting and more streamlined industrial processes will all contribute. Yet with heat accounting for almost 50% of Europe’s energy demand, some member states are sure to incentivise CHP to deliver the required savings.

We see some of the best possibilities for growth for mini- and small-scale gas engines, with new product launches and policy changes contributing to an increasingly dynamic sector. To uncover the hidden gems of this opportunity, we have recently launched our latest multi-client study: 10 to 400 kWe Gas Engines – The European Market to 2020. All the details can be found here…

Overall, Delta-ee’s CHP and Micro-CHP research teams will be closely monitoring details of EED implementation and the impacts this will have on cogeneration market growth, ensuring that our clients and subscribers have access to the latest news from around the world and regular reports on recent developments and market forecasts.
 

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