Euroheat & Power Economics of CHP Competitive heat price + credit for CO2 savings or - extra CO2 costs? - cost for infrastructure = Contribution heat E-price spot market + avoided network fee? - cost for production = Electricity credit Power market Heat market Profit / Loss
Euroheat & Power Needs good understanding of the dynamics of heating and cooling markets comprehensive policy approach (no isolated view on demand or supply side – buildings regulations, white certificates) internalisation of external costs (waste of energy, CO2) to enable investment in grid infrastructure long-term commitment for climate policies
Euroheat & Power Conclusion No investment in larger combined heat and power plants without heat load (grid) No combined heat and power without policies addressing the heat market More energy efficiency = lower impact of fuel costs on prices = more competitiveness
Euroheat & Power Euroheat & Power: 32 countries, 21 national associations Sabine.Froning@euroheat.org www.euroheat.org More information?