Legislation: COM 2004/8/EC: Directive on the promotion of cogeneration based on a useful heat demand in the internal energy market

Website on the Commission's activities to encourage cogeneration

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Combining Heat and Power: Using cogeneration to improve energy efficiency in the European Union
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DIRECTIVE 2004/8/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 11 February 2004 on the promotion of cogeneration based on a useful heat demand in the internal energy market and amending Directive 92/42/EEC

The use of combined heat and power (CHP) presents a substantial potential for increased energy efficiency and reduced environmental impacts. It is considered to be a priority area for many Member States. The efficient use of fuel, in simultaneous production of heat and power can offer energy savings and avoided CO₂ emissions compared with separate production of heat and power and the development in the use of fuels used in CHP applications show a trend towards cleaner fuels. Nearly 40% of the electricity produced from cogeneration is produced for public supply purposes, often in connection with district heating networks. 60% are generated by auto-producers, normally for industrial processes.

The Communities strategy outlined in the Commission's cogeneration strategy of 1997 sets an overall indicative target of doubling the share of electricity production from cogeneration to 18% by 2010. This was endorsed by the Member States in the form of a Council Resolution in December 1997. The indicative target was taken up in the Communication on CHP (COM(97)514 final) providing for an analysis of the barriers and strategies for is realisation. Projections show that meeting this target is expected to lead to avoided CO₂ emissions of over 65 Mt CO₂/year by 2010.

In terms of installed capacity, the share of electricity produced by cogeneration processes has raised to 10% in the EU in 2001. Large differences however are to be noted amongst the Member States with variations of the shares between 2% and 60% of the electricity production.

Hence, a new Community legislative measure concentrates on providing a framework for the promotion of this efficient technique in order to overcome still existing barriers, to advance its penetration in the liberalised energy markets and to help mobilising un-used potentials. The Directive defines high efficiency cogeneration as cogeneration providing at least 10% energy savings compared to separate production. As the indicative target value from the 1997 strategy is out-dated, the Directive does not include targets. Instead the Directive urges Member States to carry out analyses of their potential for high efficiency cogeneration.

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