NEW COOPERATION STRATEGIES IN THE GEOPOLITIC AND ECONOMIC

EUROPEAN SPACE –EU 27

“The Role of Cogeneration in S.E. EuropeCurrent Situation-Trends-Future Actions”

Costas G. TheofylaktosPresident of HACHP

Thessalonica, June 2007

Data of SE Europe

In SE Europe live 138 million people The area is 3 times the size of France 11 independent states, where

4 members of EU (1981 2004 and 2007) 2 in negotiation procedures with EU 4 member: Council of Europe and other

International Bodies Many States in the Region faced turmoil

political relations, while political, cultural, financial connections were developed between their inhabitants.

Natural resources in S.E. Europe

Rich in oil production (220,000 bbl/day) Notable quantities of N.G. ( 1,00 million Nm3/yr) Many countries are rich in resources as:

- coal, lignite, NG - bauxite -chromites- copper- iron ore, etc- RES (hydro, wind, biomass, solar, geothermal)

Economic development in SE Europe

The GDP Growth rate varies from + 1,3% (min) to + 8,2% (max)

GDP per capita varies from 1,850 €/ca (min) to 17,000 €/ca (max)

Long-term tradition in heavy industries- machinery- chemical- steel, etc, but now facing structural problems

Heavy industries in many countries is in deteriorating condition, due to political changes, occurred in past decades

Sustainable Development is in question

Energy markets in S.E. Europe

Monitoring into a new level of development, due to:- globalization of energy

production- Liberalization of energy

market- Regional Cooperation- New technologies

Fossil Fuels

Mainly coal and lignite, in large quantities in reserves - low calorific value,

- high in ash content Severe Environmental impact

Oil consumption per country

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100000

200000

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400000

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600000

700000

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Production/Consumption of Natural Gas

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Prod

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Electricity Market in the Region

The growth of electricity consumption has slowed down, due to the economic stagnation in many transition economies in the Region, i.e.: - in Bulgaria, electricity consumption has been decreasing at an annual rate of 1,3%.- in Romania electric market has been shrinking at an annual average annual rate of 5 - 7%, with increasing trends the last two years.

Electricity Market in the Region

On the other hand, during the last years: In Croatia, the annual increase of

electricity production is about 3,2% in Turkey, the industry is expanding

fast and the electricity consumption is increasing at high rates.

as the Greek SME industrial and service sectors are growing fast, this is leading to an increased average annual rate of 3,3% of the electric market.

Electricity data of SE Europe

COUNTRYCOUNTRY

ELECTRITYELECTRITYEXPORTEXPORT

million kWhmillion kWh

ELECTRICITYELECTRICITYCONSUMPTION CONSUMPTION

million kWhmillion kWh

ELECTRICITY ELECTRICITY PRODUCTION PRODUCTION million kWhmillion kWh

ALAL 100100 67606760 56805680

BiHBiH 32883288 83188318 1004010040

BULBUL 83008300 3271032710 4307043070

CRCR 406406 1520015200 1251012510

CYCY 00 42004200 40004000

GRGR 11001100 4742047420 4722047220MM 00 72207220 62706270

RORO 30463046 5750057500 5653056530SMNSMN 400400 3233032330 3164031640

SLOSLO 74487448 1180011800 1249012490

TURTUR 433433 117900117900 139700139700

2452124521 341358341358 369150369150

Regional Cooperation in Energy issues

Electricity interconnection

Oil Interconnections

Natural Gas Networks

CHP in SE Europe Facts - Structural changes in their Economy - GDP growth rate in the region is high

- Energy demand growth- Existing natural resources

- Many states operate in a liberalized energy Environment- Good interconnection in oil/NG/electricity- Experience in distributed electricity - In many countries, the developing of CHP is

obstructed by institutional and legal barriers and reform in the Energy sector is required.

CHP in SE Europe (2) In countries with planned economy, CHP systems

were developed in accordance with DH systems and for industrial purposes

After political changes in 90s, industrial production was severely reduced and DH systems were ruined.

In other countries (i.e Turkey), the increase of CHP installations was remarkable (4 MWe in 1994, 4500 MWe in 2004; an increase of 1125%)

In other countries (i.e. Greece) the penetration of CHP was limited, due to monopoly of the electricity company and other barriers

In some countries (i.e Serbia) CHP was strong few years ago, but now is struggling to start again

Little penetration of CHP in tertiary sector.

CHP in SE Europe (3)In general Existing ‘know-how’ in CHP installations CHP is used mainly for industrial purposes The majority of CHP systems are steam/gas

turbines in many countries of the region CHP systems

are strongly connected with District Heating, but

many of them need rehabilitation and therefore financial assistance

Operation of DH systems in Greece creates a remarkable expertise (technical, maintenance)

No trigeneration applications

Why Cogeneration?

International energy and environmental policy National energy policy Local heat/cool supply policy Benefits for the consumers Use of local fuels Economical benefits Labor cost Improves Productivity Working hours High technology – Development of new products

Yesterday and Tomorrow!

CHP : cleaner, cheaper and CHP : cleaner, cheaper and competitivecompetitive

Yesterday

Tomorrow: distributed/ on-site generation with fully integrated network management

Storage

Photovoltaics power plant

Windpowerplant House with domestic CHP

Powerqualitydevice

Storage

Central power station

House

Factory Commercialbuilding

Local CHP plant

Storage

Storage

Powerqualitydevice

FlowControl

Transmission Network

Distribution Network

Proposals In the 21st century, cooperationcooperation in Energy between

SE European countries should become more real. Distribution networks, N.G. and oil pipelines -

planned and/or under construction - show the way. Promotion of Decentralised Tri-generation Units

Used for the Operation of DHC Systems in the Region.

Cogeneration of Heat/Cool and Power is a field where cooperation and common actions should take place, benefiting the Environment, the Economy of the Region and improving the living standards of the inhabitants with continuous energy supply, better quality, primary energy sources conservation.

Steps for promoting CHP in SE Europe

Procedures of grid connection, technical, engineering Procedures of grid connection, technical, engineering and construction in generaland construction in general

Procedures and tariffs for top-up and, in particular, Procedures and tariffs for top-up and, in particular, back-up power supplies to the CHPback-up power supplies to the CHP

Defined purchasing price for surplus of co-generated Defined purchasing price for surplus of co-generated electricityelectricity

Recognize potential contribution to emissions reductions Recognize potential contribution to emissions reductions Better tariffs for power delivered to grid and natural gasBetter tariffs for power delivered to grid and natural gas Set national target of CHP productionSet national target of CHP production Informing and educating potential usersInforming and educating potential users Increase Role for Tri-generation and Distributed Increase Role for Tri-generation and Distributed

ElectricityElectricity Creation of the South East CHP Association, where Creation of the South East CHP Association, where

Greece and Romania can play an important roleGreece and Romania can play an important role..

THANK YOU FOR YOUR ATTENTION!

www.hachp.gr www.cogen.org