Gas Industry micro CHP workshop 2008 Paris, France May 29 – 30, 2008
Subsidizing mCHP. What is the situation? Impact of different models
A. H. Pedersen / DONG Energy A/S
Huge investments needed to overcome the jump from niche – to mainstream market
Present mCHP technologies – without public Present mCHP technologies – without public support - are only available for:support - are only available for:
• "rich" technology interested consumers and"rich" technology interested consumers and
• energy companies with a strong believe in energy companies with a strong believe in future business in the mCHP market.future business in the mCHP market.
Market – and demonstration - are necessary to Market – and demonstration - are necessary to create a competetive product. For some mCHP create a competetive product. For some mCHP products the industry is facing reduction of products the industry is facing reduction of production cost to 1/5 of the present production production cost to 1/5 of the present production cost to create a competitive product.cost to create a competitive product.
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Portugal
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:
Two laws
1:
Power < 150 kW – Price depending on technology. Up to 50% of produced power can be delivered to public network. 50% must be used for own purpose – at grid price of 11 c/kWh
Prices for power delivery to network depending of technology:
ICE – 12 c/kWh
Stirling engine – 13 c/kWh
FC's – 32 c/kWh
2:
Power < 3,68 kW. Prices for power delivery depend on fuel:
Fossil fuel – 11 c/kWh
Biofuel – 19 c/kWh
Solar – 65 c/kWh
Japan
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1 kW PEFC units
Subsidy to energy companies for technology development
2005 – 50.000$/unit (1 kW),
2006 – 38000$/unit,
2007 – 30000$/unit
2008 – 22000$/unit (planned)
( > 2000 units installed end 2007 )
Field test number of installed units
Fuel kind 2005 year
2006 year
2007 year Total
Tokyo Gas City gas 150 160 210 520
Osaka Gas City gas 63 160 81 224
Toho Gas City gas 12 40 38 90
Saibu Gas City gas 10 10 13 33
Hokkaido Gas City gas - 10 10 20
Nippon GasCity gas - 3 3 6
LP gas - 7 7 14
New Nippon OilLP gas 134 226 250 610
Kerosene - 75 146 221
Idemitsu Kosan LP gas 33 40 50 123
Japan Energy LP gas 30 40 34 104
Iwatani & Co., Ltd. LP gas 10 34 29 73
Cosmos oilLP gas 10 19 14 43
Kerosene - - 5 5
Taiyo Oil LP gas 8 13 18 39
Kyushu Oil LP gas 8 10 12 30
Showa Shell Oil LP gas 6 10 10 26
Lemon gas LP gas 6 - - 6
Total 480 777 930 2,187
1 k W PEFC Fuel Cell
2005 – 50.000$/unit (1 kW),
2006 – 38000$/unit,
2007 – 30000$/unit
2008 - 22000 $/unit planned
Natural gas 893 units
ICE engines installed – end 2007
about 65000 – 1 kW units
about 3500 units in the range from 1 to 10kW
100 JPY = 1 US$
1 kW
UK
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•VAT reduction from 17,5% til 5%
•Beneficial description
•Easy access to ROC’s
•Partly funding from Energy companies
Germany
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5,1 cent/kWh +
0,8 c/kWh (avoiding high and medium voltage grid) +
0,55 c/kWh gas used (discount on app. 5,5 c/m3 natural gas - or app. 1 c/kWh electricity produced)
In total: app. 7c/kWh sold to grid.
Holland
11
No incentives for households to buy MicroCHP – only for industries (tax breaks)
Up to 3000 kWh/y delivered to net – can be subtracted from delivered power from public network
Impacts of models for public support to mCHP
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Subsidy to energy companies has shown most remarkable results.
In Japan is now installed :
65000 – 1 kW gas engine units
2000 FC – 1 kW units
3500 mCHP units from 1 - 10kW
Other kinds of public support still have to prove markable effect
Global sale of mCHP Delta mCHP summit 2008