An Introduction to Micro- Cogeneration

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An Introduction to Micro- Cogeneration ( an-introduction-micro--cogeneration )

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It is sometimes referred to as ‘Mini cogeneration’. Due to lower running hours the economics of domestic cogeneration are quite different from commercial mini/micro cogeneration but both should be thermally led. As a result, their economics are critically dependent on low capital cost and sale of exported electricity. WHY NOW? There are 3 main reasons why now is the right moment for micro-cogeneration. First, simultaneously as new commercial possibilities arise, the liberalisation of energy markets provides radical changes to the thinking about energy production. Second, and this deserves more explanation, environmental pressures, in particular to minimise CO2 emissions are mounting. And third, as the other sections of the brochure show, the technology is becoming available. Commercial possibilities in liberalised energy markets A report by the UK’s Department of Environment, Transport and the Regions3 has indicated technical potential for small scale (5-20 kWe) engines is 3000 MWe on a total of 270 000 sites in the UK market. This does not take account of the micro- cogeneration market which focuses on domestic dwellings. Again looking at the UK market which may be as big as 10 million units technically or some 25-30GWe. With the opening of the markets, energy distribution and supply companies will use micro cogeneration as a way to gain new customers or keep previously captive customers. It is important that energy companies try to anticipate or at least accompany the development of this new technology as they can gain from it as much as the consumers. The electricity demand is rising all over Europe and they will have to undertake expensive grid reinforcement unless they implement decentralised solutions such as micro cogeneration. Environmental pressures The more decentralised the energy production becomes, the lower transport losses will be. The energy saving potential of decentralisation is high since the European Commission estimates transmission and distribution losses to amount to an average of 6% of the electricity transported in the EU and in some countries this is much higher. Also the losses of supplying electricity to domestic consumers is higher than the average losses as it is at the lowest voltage levels. The negative environmental impact of high voltage lines, both in terms of visual amenity and public concerns over electromagnetic radiation, is resulting in it being increasingly difficult to reinforce or replace the transmission systems of the EU. Several studies have shown that decentralised cogeneration is a real alternative to the expensive and disruptive creation or reinforcement of these high voltage lines4. Above all, the climate change debate which culminated in the Kyoto Protocol has proven to be an important incentive for the development of cogeneration as it is one 3 Future Practice Report no. 32, Drummond Hislop, ESD under contract to ETSU on behalf of EEO of DOE, January 1993 4 INESTENE/BCEOM, Studies on the Ploermel Area and on the PACA Region, 1995 4

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