This refers to the Directive on the promotion of cogeneration based on a useful heat demand in the internal energy market and amending Directive 92/62/EEC, officially 2004/8/EC and popularly better known as the 'Combined Heat and Power (CHP)

Cogeneration

Cogeneration is the use of a heat engine or a power station to simultaneously generate both electricity and useful heat....

 Directive'

It is a European Union directive

European Union directive

A directive is a legislative act of the European Union, which requires member states to achieve a particular result without dictating the means of achieving that result. It can be distinguished from regulations which are self-executing and do not require any implementing measures. Directives...

 for promoting the use of cogeneration

Cogeneration

Cogeneration is the use of a heat engine or a power station to simultaneously generate both electricity and useful heat....

 in order to increase the energy efficiency

Efficient energy use

Efficient energy use, sometimes simply called energy efficiency, is the goal of efforts to reduce the amount of energy required to provide products and services. For example, insulating a home allows a building to use less heating and cooling energy to achieve and maintain a comfortable temperature...

 and improve the security of supply of energy. This is intended to be achieved by creating a framework for the promotion and development of high efficiency cogeneration.

The directive entered into force in February 2004 and member states have been obliged to begin its implementation since 2006. (however due to delays resulting out of the comitology

Comitology

Comitology in the European Union refers to the committee system which oversees the delegated acts implemented by the European Commission.-Overview:...

 process, member states had to adopt the first obligations of the directive by 6 August 2007.)

It is intended that the directive will have a significant impact on the legislation and the diffusion of CHP

Cogeneration

Cogeneration is the use of a heat engine or a power station to simultaneously generate both electricity and useful heat....

/cogeneration

Cogeneration

Cogeneration is the use of a heat engine or a power station to simultaneously generate both electricity and useful heat....

 and district heating

District heating

District heating is a system for distributing heat generated in a centralized location for residential and commercial heating requirements such as space heating and water heating...

 within the member states of the European Union.

In summary, the Member States are obliged to produce reports covering their analysis of the state of CHP in their own countries, to promote CHP and show what is being done to promote it, to report on and remove barriers, and to track progress of high-efficiency cogeneration within the energy market.

Directorate-General for Energy

The directive comes under and is administered by The European Commission’s Directorate-General for Energy

Support Mechanism for CHP per Member States

EU27 – Member States’ national support schemes available by categories

EU27‐Member States	Feed‐In Tariffs (FIT) Feed-in Tariff A feed-in tariff is a policy mechanism designed to accelerate investment in renewable energy technologies. It achieves this by offering long-term contracts to renewable energy producers, typically based on the cost of generation of each technology...	FIT Feed-in Tariff A feed-in tariff is a policy mechanism designed to accelerate investment in renewable energy technologies. It achieves this by offering long-term contracts to renewable energy producers, typically based on the cost of generation of each technology...  + Premiums	Certificates	Tax Support	Capital Grant	Other
Austria	x					x
Wallonia			G			x
Flanders			G, W			x
Brussels			G			x
Bulgaria	X (only for RES) Upcoming	Example	Example	Example	Example	x
Cyprus		Example	Example	Example	Example	x
Czech Republic	x	Example	Example	Example	Example	x
Denmark		Example	Example	Example	Example	x
Estonia		Example	Example	Example	Example	x
Finland	X (only for RES) Upcoming	Example	Example	Example	x	x
France	x	Example	Example	Example	Example	x
Germany	x	Example	Example	Example	Example	x
Greece	x	Example	Example	Example	Example	x
Hungary	x	Example	Example	Example	Example	x
Ireland1		Example	Example	Example	Example	x
Italy	x	Example	Example	Example	x	x
Latvia	x	Example	Example	Example	Example	x
Lithuania	x	Example	Example	Example	Example	x
Luxembourg		Example	Example	Example	Example	x
Malta2		Example	Example	Example	Example	x
Netherlands	X (only for RES) Upcoming	Example	Example	Example	x	x
Poland3		Example	Example	Example	Example	x
Portugal	x	Example	Example	Example	x	x
Romania		Example	Example	Example	Example
Slovak Republic	x	Example	Example	Example	Example
Slovenia	x	Example	Example	Example	x	x
Spain		Example	Example	Example	Example	x
Sweden		Example	Example	Example	x	x
United Kingdom4	X (only for RES) Upcoming	Example	Example	x	Example
Example	Example	Example	Example	Example	Example	Example

RES = Renewable energy sources

NG = Natural gas

Certificates: W = White certificates, R = Red certificates, Y = Yellow certificates, G = Green certificates

Notes:

1. Grant support system to assist the deployment of small scale (less than 1 MWe) fossil-fired CHP and biomass (anaerobic digestion and wood residue) CHP systems + Financial tax incentives (Accelerated Capital Allowance Scheme)
2. Support schemes are under consideration in Malta
3. In Poland Red certificates are the equivalent of White certificates (for CHP) in other countries. Polish Authorities created also Yellow certificates (for Natural gas and CHP small systems below 1 MW of electric output) which compensate for relatively high cost of natural gas or high investment cost of distributed systems.
4. Under the Renewables Obligation, CHP plants using renewable energy fuel, such as biomass and biogas, benefit from a premium on each MWh of electricity produced. And new feed-in tariffs for renewables are expected to enter into force from April 2010.

See also

• Energy policy of the European Union
  Energy policy of the European Union
  Although the European Union has legislated in the area of energy policy for many years, and evolved out of the European Coal and Steel Community, the concept of introducing a mandatory and comprehensive European energy policy was only approved at the meeting of the European Council on 27 October...
  
  
• Cogeneration
  Cogeneration
  Cogeneration is the use of a heat engine or a power station to simultaneously generate both electricity and useful heat....
  
  
• District heating
  District heating
  District heating is a system for distributing heat generated in a centralized location for residential and commercial heating requirements such as space heating and water heating...
  
  
• Euroheat & power
  Euroheat & Power
  Euroheat & Power is a pan-European trade association of district heating operators and related companies and associations.Euroheat & Power unites the combined heat and power, district heating and cooling sector throughout Europe and beyond, with members from over thirty countries: including...
  
  
• Relative cost of electricity generated by different sources
• Cogen Europe
  COGEN Europe
  COGEN Europe is a Brussels-based advocacy group that promotes the use of cogeneration . The organisation currently encompasses over 75 members from over 25 countries across Europe...
  
  
• Gas engine
  Gas engine
  A gas engine means an engine running on a gas, such as coal gas, producer gas biogas, landfill gas, or natural gas. In the UK, the term is unambiguous...
  
  
• New York City steam system
  New York City steam system
  The New York City steam system is a district heating system which takes steam produced by steam generating stations and carries it under the streets of Manhattan to heat, cool, or supply power to high rise buildings and businesses...
  
  
• Organic Rankine Cycle
  Organic Rankine Cycle
  The Organic Rankine cycle is named for its use of an organic, high molecular mass fluid with a liquid-vapor phase change, or boiling point, occurring at a lower temperature than the water-steam phase change. The fluid allows Rankine cycle heat recovery from lower temperature sources such as...
  
  
• Pinch analysis
  Pinch analysis
  Pinch analysis is a methodology for minimising energy consumption of chemical processes by calculating thermodynamically feasible energy targets and achieving them by optimising heat recovery systems, energy supply methods and process operating conditions...
  
  
• Stirling engine
  Stirling engine
  A Stirling engine is a heat engine operating by cyclic compression and expansion of air or other gas, the working fluid, at different temperature levels such that there is a net conversion of heat energy to mechanical work....
  
  

External links

• Official Commission page on the CHP Directive
• Plain words summary of directive from the general EU website
• Opinion on questions of law arising from the interpretation of the CHP directive 2004/8/EC