Cogeneration report notes slow progress
The cogeneration market in Europe is moving forward but not as quickly as had previously been projected. A recent market overview of 18 countries suggests that cogeneration now accounts for 9 to 10 percent of electricity production, well short of the 30 percent or more achieved by Denmark, the Netherlands and Finland. (see figure) Most progress in this field in the past couple of years has taken place in the UK, Spain, Portugal and Germany, according to the “1997 European Cogeneration Review” from COGEN Europe.
The report notes a variety of barriers to cogeneration. Despite agreement of the EU electricity directive, opening of energy markets is limited to only a few countries and opportunities for developers to enter non-domestic markets are virtually non-existent. Positive signs for the industry, noted in the report, include natural gas becoming more widely available and improvement in the awareness of the cost effectiveness of combined heat and power. The report anticipates massive market potential across Europe in the medium-term outlook, with greatest promise offered in Germany, Sweden, Poland and Italy. The recent report was prepared as an update of the COGEN Europe 1995 report titled, “The Barriers to Combined heat and Power and Europe.” The report is available by calling COGEN Europe at +32 2 772-8290.