in relation to the Gas Directive, the European Parliament suggests extending the scope of the Directive to include biogas, gas from biomass and LNG. Additional amendments aim to foster competition and create a real level playing field between market participants. This includes complete unbundling of transmission from supply activity, the creation ofa powerful regulatory authority, and exante approval of tariffs and conditions for connection and use of the networks. Promotion of CHP The proposal for this Directive is likely to be published in the summer of 2002. No dates for the first reading in the European Parliament and for debate in the Council of Ministers have been set. it is therefore difficult to estimate when the Directive would come into force. Adoption of the Directive will probably be somewhere in 2003. Member States would be given two years to transpose it into national law, meaning that the provisions foreseen in it would effectively come into effect around 2005. The Directive would have the purpose to create a framework for promotion of cogeneration based on useful heat demand in the internal energy market. Useful heat would be defineci as 'heat produced in a cogeneration process to satisfy an economically justified demand.' Yet, no definition of 'economically justified heat demand' is provided. The Directive would include the following main parts. Criteria for high-efficiency cogeneration Criteria for high-efficiency cogeneration would be different for existing installations (having started operation before 2004) and new ones (from 2004). High-efficiency cogeneration would be defineci in terms of the efficiency gain of eogeneration compared with separate production of heal and electricity. New CHP should provide energy savings of at least 10% in order to qualify as high-efficiency CHP. For existing installations, this threshold is 5%. Guarantee of origin for CHP electricity The Directive would request Member States to establish certification systems that guarantee the origin of electricity from high-efficiency cogeneration. The guarantee of origin would enable electricity producers to prove their power comes from CHP. ldentification of national CHP potentials Member States would have to calculate, according to criteria set out in the proposed Directive, their national potentials tor CHP for at least three different categories (industrial, heating and agricultural CHP) and to describe barriers to the realization of this potential. Assessment of CHP support schemes Member States would have to ensure that CHP support schemes would be based on 'useful heat demand.' They MAKALE / ARTICLE also should consider reducing energy demand through 'other economically feasible measures like energy efficiency measures.' The European Commission would evaluate the contribution of these support measures to the objectives of EU policy for the environment and sustainable development. The Commission would furthermore, on the basis of three-yearly national reports on the development of CHP and the measures taken to promote it, assess the progress made to realise the national potentials and the successes and cost-effectiveness of national CHP support schemes. A first report on this assessment would probably be published around 2007/8. The explanatory memorandum to the draft Directive states that support schemes should concentrate on plants with a capacity of less than 50MWe. Bigger installations could stili be eligible for support, but only for the share of electricity production corresponding to 50 MWe. Electricity grid system issues O General: transmission and distribution system operators would need to ensure the transmission and distribution of electricity from CHP. '7 Connection to the network: published rules and tariffs far system adaptations and the sharing of connection costs and benefits between all system users, based on objective, transparent and non-discriminatory criteria; the possibility of requiring system operators to bear these costs partly or fully; a requirement to provide CHP producers with comprehensive and detailed cost estimates prior to connection; CHP producers could be allowed to put connection works out for tender. J Use of the network: prohibition of discriminatory transmission and distribution fees; the possibility that these fees reflect 'realisable cost benefits', for instance from the direct use of the low-voltage grid. Back-up and top-up tariffs: for non-eligible customers (this includes, until further notice, all non-commercial customers), these would need to be published and approved by an independent regulatory authority; mandatory monitoring and benchmarking of tariffs and conditions for sales to, and purchase of power from, CHP producers; tri-annual reporting to the European Commission on the findings. 7 Further support measures: Member States should consider two-way metering for CHP in residential buildings and further measures to facilitate access to the grid, especially for small-scale CHP with renewables. Administrative procedures Member States would need to evaluate their authorisation procedures for CHP applications and to ensure that these prevent CHP installations based on unjustified heat demands, reduce barriers to the increased use of CHP, streamline procedures, and make sure that they take into account the particularities of specific CHP technologies. ECOGENERATION WORLD 49
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