,2 (16) Public support schemes for promoting cogeneration slıould focus on support for cogeneration based on a useful heat demand and avoid encouragement of increased Iıeat demand in order to avoid increase of fuel consumption and CO 2 emissions. Member States slıould take steps to prevent public fınancial support for electricity from cogeneration from being used to subsidise lıeat production, tlıereby creating incentives for being less careful about tlıe proper use ofthe lıeat output. Witlıout prejudice to tlıe Community Guidelines on State aid for environmental protection, direct support for production slıould in principle be focused on the slıare of cogeııerated electricity produced eitlıer in installations witlı a capacity below a tlıreshold value that should be set at 50 MW(e) or lower or. inlarger installations but then only tlıe amount of electricity produced by the capacity below suclı a tlıreslıold value. (17) Member States operate different mechanisms ofsupportfor cogeneration at tlıe national level, including investment aid, tax exemptions or reductions, green certifıcates and direct price support sclıemes. Tlıe Comınission intends to monitor the situation and report on experiences gained witlı tlıe application ofnational support schemes. (18) Grid connection costs and tariffs related to tlıe transınission and distribution ofelectricity from cogeneration and tariffs related to the purchase of additional electricity sometimes needed by cogeneration producers should be set according to objective, transparent and non-discriıninatory criteria taking into account the costs and benefıts of cogeneration. Especially for cogeneration installations using renewables and small ones witlı capacity below I MW(e), costs and adnıinistrative burdens in relation to connection to tlıe electricity grid constitute considerable barriers for furtlıer developnıent. (19) The specifıc structure oftlıe cogeneration sector, whiclı includes many small and medium-sized producers, slıould be taken into account, especially wlıen reviewing the administrative procedures for obtaining permission to construct cogeneration capacity. (20) Within tlıe purpose ofthis Directive to create a framework for promoting cogeneration it is important to emplıasise tlıe need for a stabile economical and administrative environment for investments in new cogeneration installations. Member States are encouraged to address tlıis need by designing support schemes witlı a duration period of at least 4 years and by avoiding frequent changes in admini _ strative procedures ete. Member States are furtlıermore encouraged to ensure that public support schemes respect the plıase-out principle. (21) The overall effıciency and sustainability of cogeneration is dependent on the many factors suclı as teclınology used, fuel types, load curves, tlıe size, and also on tlıe properties of the lıeat. Use of heat as lıiglı pressure steam for industrial processes provides liınits of tlıe electrical effıciency oftlıe cogeneration installation because oftlıe lıiglı temperature level for the lıeat (above140°C). Use ofheat for central lıeating purposes, demanding a lower temperature level (from 40°C to 140°C) tlıan tlıe industrial use, allows a lıigher electrical effıciency ofthe cogeneration installation. Use ofheat for agricultural lıeating, such as wanning of greenhouses and aquaculture pools, provides an even lower level ofteınperature (below 40°C) and improves tlıereby the possibilities to increase the electrical effıciency. This Directive retlects these considerations by introducing tlıree classes ofcogeneration in order to ensure that evaluation of electrical effıciency of30 different cogeneration installations take tlıe different heat temperature levels into consideration. (22) In accordance with the principles of subsidiarity and proportionality as set out in Article 5 of the Treaty, general principles providing a fraınework for the promotion of cogeneration in the internal energy market should be set at Coınmunity level, but the detailed iınpleınentation should be left to Meınber States, thus allowing each Meınber State to choose the regime, which corresponds best to its particular situation. This Directive confınes itselfto the minimum required in order to achieve those objectives and does not go beyond what is necessary for that purpose. HAVE ADOPTED THIS DIRECTIVE: Artic/e 1 Purpose The purpose oftlıis Directive is to create a framework for proınotion ofcogeneration based on useful heat demand in the internal energy market. lmplementation oftlıis Directive shall take into account the specifıc national circuınstances especially concerning cliınatic and economic conditions. Artic/e 2 Scope This Directive shall apply to cogeneration as defineci in Article 3. Annex l provides a list of different types of cogeneration units covered by this Directive. ECOGENERATION WORLD Artic/e 3 Definitions
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