Cogeneration Growth Projections— European Union

Abstract

Plans to provide a uniform platform for cogeneration grid access
with consistent pricing rules and incentives is currently being imple-
mented within the EU, although the results and problematic issues are
not clear at this time. Because of the considerable difference in utility
supply, regulatory interface, taxation, and political structures in the vari-
ous countries, the current level of cogeneration activity varies greatly
from country to country. For instance, there exists little technical or eco-
nomic incentives to develop cogeneration in France. However, in the
United Kingdom and Germany, with their high dependence on fossil
fuels and a much more “open” political structure, cogeneration activity
is significantly higher.
The UK, despite its deregulated political status, still maintains a
tight band of very large utility operators, as contrasted to Germany’s
market with over 900 utility entities. While Germany’s cogeneration
market is well developed, it is also the world leader in wind capacity,
with approximately 1,200 MW operating in 1999, many infrastructure
and political issues still prevent the full potential from being realized.
Germany, along with Sweden, has initiated strong legislation to phase
out current nuclear generation capacity. This will open additional areas
for cogeneration growth, especially Sweden, where the current power
supply is over 90% nuclear and hydro. To date this has provided mini-
mum room for only a very small market for specialized, highly efficient
thermal cogeneration plants.