Aviel Verbruggen

How to promote renewable energy systems successfully and effectively

This paper summarises the major recommendations and conclusions of the third Forum of the European Network on Energy Research (ENER) which took place in June 2002 in Budapest. The major perceptions of this meeting as well as the most important conclusions and recommendations for energy policy makers are compiled in this summary. The statements compiled in the following represent a consensus within the ENER Network while on some questions differences in perception and analysis persisted.

Combined heat and power: a real alternative when carefully implemented

Abstract During the remainder of 1992, a series of papers regarding combined heat and power (CHP) will be published in Energy Policy . In this article the guest editor highlights some aspects of this many sided and complex technology. Starting from the thermodynamic basic, he considers the main characteristics of jointly generated heat and power outputs. After an overview of the technologies the very different nature of independent versus utility CHP is discussed. The factors determining the economic feasibility are listed with an emphasis on the performance of energy markets linked to CHP. This naturally leads to policy questions. The future of CHP seems less dependent on thermodynamic certainties than on institutional and policy decision making.

Tradable green certificates in Flanders (Belgium)

Abstract The paper provides details on green certificate systems in Belgium. The Flemish region has established a system and the Walloon region is preparing a slightly different one. The lack of uniformity and consequently of transparency in one country emphasises the need for more EU leadership in the field. The main part of the article analyses the established Flemish system. Green certificates are complementary to other instruments that promote renewable electricity, e.g. direct subventions on the feed-in price of green electricity or direct subventions on capital investments. Certificates execute a forcing effect on the actual development of green power if the imposed shares of green power in total sales are significant and if the fine level is at the height to enforce the quota. If the fine is too low the incentive effect turns into a financing tax effect. When the green certificate system does the job it is designed for, i.e. operating at the edge of the RES-E development and organise the transition from a non-sustainable to a sustainable power system, certificate prices will be high and reduce end-use consumption of electricity. A segmentation of the RES-E sector along the various RES-E technologies is a necessity to keep any certificate system affordable, effective and efficient. One can segment the tradable certificate market or one can assign a different number of certificates to a different RES-E technology project. Both solutions require an intensive follow-up of cost structures and of other policy measures (subventions), but given the infant state of understanding and experience segmenting markets may be best in the nearby years.

Renewable energy and climate change

Executive Summary All societies require energy services to meet basic human needs (e.g., lighting, cooking, space comfort, mobility, communication) and to serve productive processes . For development to be sustainable, delivery of energy services needs to be secure and have low environmental impacts. Sustainable social and economic development requires assured and affordable access to the energy resources necessary to provide essential and sustainable energy services. This may mean the application of different strategies at different stages of economic development. To be environmentally benign, energy services must be provided with low environmental impacts and low greenhouse gas (GHG) emissions. However, 85% of current primary energy driving global economies comes from the combustion of fossil fuels and consumption of fossil fuels accounts for 56.6% of all anthropogenic GHG emissions. Renewable energy sources play a role in providing energy services in a sustainable manner and, in particular, in mitigating climate change . This Special Report on Renewable Energy Sources and Climate Change Mitigation explores the current contribution and potential of renewable energy (RE) sources to provide energy services for a sustainable social and economic development path. It includes assessments of available RE resources and technologies, costs and co-benefits, barriers to up-scaling and integration requirements, future scenarios and policy options. GHG emissions associated with the provision of energy services are a major cause of climate change . The IPCC Fourth Assessment Report (AR4) concluded that “Most of the observed increase in global average temperature since the mid-20th century is very likely due to the observed increase in anthropogenic greenhouse gas concentrations.”

Economic evaluation of independent CHP projects

Abstract This article discusses the economic evaluation of CHP projects from the point of view of non-utility investors (industries, commercial facilities, local authorities). To obtain reliable estimates of CHP profitability, it is necessary to simulated the hourly operation of a CHP plant. This involves detailed modelling of the three most important determinants of economic profitability: electricity and heat load profiles, characteristics and size of the proposed CHP plant, and the electricity tariff conditions. Our computer model which copes with hourly detailed variations is described briefly. Results from case studies with the model show the high sensitivity of CHP profitability to variations in crucial parameters eg electricity and heat load patterns, reliability and size of the CHP plant.

The impact of CHP generation on CO2 emissions

The combined generation of heat and power (cogeneration) is praised by many as a technique for reducing the emissions of CO2 in industrialized nations. This is generally true but not always. In this article we discuss the impact of some major variables on the CO2 emission reduction capacity of cogeneration. Two sets of variables are predominant: the characteristics of the CHP process and the composition of the electricity generation sector. We highlight the interaction between the two sets of variables with the help of diagrams.

Retrofit of a century old land-house to a low-energy house

Converting a low-quality brick construction into a low-energy solar house takes five steps. First, avoid spillage by optimal space allocation. Second, apply natural and/or somatic energy wherever and whenever possible. Third, integrate passive and semi-passive solutions. Fourth, harvest renewable commodity energy. Fifth, efficiently complement previous steps with commercial energy. Twelve percentage of the retrofit budget made the house largely independent from commercial supplies (energy, water, sanitation). Benefits exceed costs several times. Thermal and living comfort levels are exceptionally high. The owner-occupier was intensely involved, adapting designs and solutions to personal preference while gaining understanding, familiarity and security with the house.

A normative structure for the European electricity market

Abstract A normative structure for the European electricity industry is discussed. This model builds upon proposals and experiences in several European nations (in particular the Netherlands and the UK). Two rivalling structures (vertical integration versus open competition) are compared. Our ‘open structure’ is specific in not allowing TPA (third party access) to the grid, and in making the necessary distinction among ‘independent generators’ and Independent Generators of Own Power IGOPS. Cost economies (scale, scope and density) are related to the three major functions of a power system (generation, transport, distribution). The performance of the rival models is assessed for five criteria: sustainability, economic efficiency, regulatory efficiency, equity, and institutional feasibility.

Electricity sector restructuring in Belgium during the 90's

Abstract Since 1925, the Belgian liberal statutory framework, combined with weak supervision by public authorities, allowed the Tractebel conglomerate and its subsidiary Electrabel to strengthen in the nineties their dominant position in all parts of the Belgian electricity market. The implementation of the EU internal market of electricity directive speeded up the process of market liberalisation. However, the urgency of the law-giving process and the traditionally overwhelming power of the incumbent interests of the Tractebel conglomerate will bring about a merely formalistic opening of the Belgian electricity market.

Qualifying Combined Heat and Power (CHP) activity

The EU 2002 draft and 2004 final CHP Directives propose qualifying CHP activity with the quality norm. This norm benchmarks the energy efficiency of CHP plant outputs on external reference power and heat efficiencies. Because the quality norm amalgamates cogeneration and condensing activity its application entails particular perverse effects for high-quality and adapted scale investment in CHP capacities and for operating available units. Operators get incentives to part-load or shut down their capacities and to avoid condensing activity (lucrative at spiky price conditions in the power market). The formula of the quality norm is only useful when CHP activity (heat recovery, cogenerated electricity, fuel consumption for cogeneration) is first quantified reliably.