Cogoneration must not be treated with neglect
"If we care about the development of cogeneration, let draw attention of the Ministry, that the CHP in the upcoming energy law is treated with neglect ... too little is said about the effects and benefits of the development of cogeneration" - calls Andrzej Rubczyński, Director of Regulatory and Legislative, PGNiG SA Termika
Due to the great interest of the sector associated with the production of electricity and heat in cogeneration, the CBE Poland team organized the second edition of the Seminar "Development prospects of cogeneration" on 21st-22nd August. The first day of the meeting was held at the Congress Centre Warszawianka and had lecture and exhibition character. The second day was devoted to evisiting the CHP Siekierki, which is the largest Polish cogeneration plant and the second largest power plant in Europe. The event was attended by over 100 participants representing, among others, power utilities, heating, industrial energy users and companies which are considering the construction of cogeneration capacity for their own needs, as well as companies providing services and technologies dedicated to cogeneration.
It is estimated that the Polish energy mix may take about 5 GW of CHP, but after a period of stagnation in the investment industry needs a simple and above all, a stable regulatory environment, to be ready in time for the upcoming environmental rigidities arising among other from the IED directive.
Cogeneration regulatory environment
Dr. Zdzislaw Muras reminded that the primary legal document on the electricity and heat production in the so-called combination, is the Act - Energy Law - dated on 10 April 1997 and the Regulation of the Minister of Economy dated on 18 October 2012 concerning the specific scope of the obligation to obtain and present for redemption of certificates of origin, the substitute fee, purchase of electricity and heat produced from renewable energy sources and the obligation of data confirmation about the amount of electricity generated from a renewable energy source (Law Gazette dated on 9 November 2012. pos. 1229), which entered into force on 31st december 2012. Moreover, there are important Minister of Economy Regulation dated on 26 July 2011. concerning the data calculation provided in the application for the issuance of certificates of origin from cogeneration and the detailed scope of the obligation to obtain and present for redemption of these certificates, pay a substitute fee and to confirm data on the amount of electricity produced from high efficiency cogeneration (Law Gazette from 2011 No. 176, item. 1052) and the Regulation of the Ministry dated on 13 November 2013 amending MG Regulations dated on 18 October 2012. (Law Gazette from 2013, Pos. 1362). It is worth noting that in matters relating to the issuance of the certificates of origin for electricity generated before 1st January 2013 shall not apply the regulations of § 6. par. 3-7 and § 7. par. 1 in scope, in which those regulations relate, respectively, to full-valued timber or auxiliary fuel.
The CHP obligation range represents the minimum share of total volume of electricity resulting from acquired and remissioned Certificate of Origin from CHP or substitute fee paid referenced to: the purchase electricity for their own use by industrial customers; total sales of electricity to non-industrial final customers by energy companies conducting economic activity in the field of electricity production or distribution of the electricity and selling this energy to final customers; to the purchase of electricity on a commodity exchange or on market organized by the entity operating in the territory of the Republic of Poland regulated market in transactions on their own behalf by final customers; to the purchase of electricity by commodity brokerage house or brokerage house, in relation to transactions carried out on behalf of final users, other than industrial customers.
According to the CHP amending the Act dated on 14 March 2014, the Certificate of Origin from Cogeneration issued for electricity generated prior to the date of entry into force of this Act, in high-efficiency cogeneration in "yellow and red" cogeneration units do not enter into the settlement of performance of the obligation of obtaining and presenting for redemption of Certificate of Origin. In determining the scope of the obligation of obtaining and presenting for redemption of Certificate of Origin for year 2014 did not take into account the electricity purchased or sold prior to the entry into force of this Act. An important change is that Certificate of Origin from Cogeneration issued by a final court judgment is included in the settlement of performance of tobligation of obtaining and presenting for redemption of Certificate of Origin for the year in which the certificate was issued. To proceedings initiated and not completed before the entry into force of this Act, relating to certificates of origin from cogeneration, existing regulations shall be applied.
Substitute fee are an income of NFOŚiGW (National Fund for Environmental Protection and Water Management) and should be paid to the bank account of the Fund, till 31st March of each year for the previous calendar year - in the case of RES charges and till 30th June of each year for the previous calendar year - in the case of CHP charges.
Annual Certificate of Origin from Cogeneration and a few other changes
The Certificate of Origin from Cogeneration remited by the President of the Energy Regulatory Office by 30th June of the calendar year, issued for electricity generated in a cogeneration unit in the previous calendar year, is included in the settlement of the obligation to comply with cogeneration, in the previous calendar year.
The regulations concerning the obligation of obtaining and presenting for redemption of Certificate of Origin from Cogeneration or paying a substitute fee for electricity produced from high efficiency cogeneration in cogeneration units shall apply until 30 June 2019. Previous regulations - CHP Regulation - remain in force until the entry into force of the implementing rules issued on the basis of the amendments to the delegation processes in Act of Energy Law.
Concession must be owned independently of the installed capacity of both renewable sources and cogeneration sources (excluding agricultural biogas power plants), and the entry in the register: electricity and gaseous fuels producers. Electricity generation in micro-installations by a individual person who is not a trader within the meaning of the Act on freedom of economic activity is not an economic activity within the meaning of this Act. The concession is issued to the applicant who: has his habitual residence in the territory of a Member State of the EU or EFTA member state or the parties to the Agreement on the European Economic Area, the Swiss Confederation and has adequate financial resources, has the technical capabilities to ensure the exercise of the activity, provides employment of persons with relevant qualifications and also obtained a zoning approval. Requirements for application are set out in Article. 35 of the Act of Energy Law.
Economic activity in the fild of generation of electricity from agricultural biogas and biogas production in agriculture – in purpose to enter into the network of Gas Distribution System Operator (OSDg) is regulated activity and requires registration into regiter of manufacturers of biogas. Registration authority is the President of the Agricultural Market Agency (ARR) that: establish a model application for entry, issue a decision on the entry, change the entry and withdraws, keep records and transmits information to the ERO and controls performed activities (art. 9s Act of Energy Law), and also runs an extensive system of data collection from entrepreneurs.
The criteria for the recognition of manufacturing in high-efficiency cogeneration is to achieve primary energy savings ≥ 10% to save energy in units with installed capacity <1 MW. The average annual fuel efficiency of energy conversion into electricity and heat: 75% for units, ie. backpressure steam turbines, gas turbines with heat recovery, combustion engine, micro-turbine, Stirling engine, the fuel cell; 80% of units with gas-steam system with heat recovery and steam extraction-condensing turbine. For units that do not meet criteria for conversion efficiency, cogeneration factor in support is calculated on the basis of ratio between electricity from cogeneration and useful heat in cogeneration.
The President of ERO issues Certificate of Origin and Certificate of Origin from cogeneration for electricity generated from a renewable energy source that satisfies both conditions of high efficiency cogeneration (green + yellow or / and purple or / and red) - Art. 9e 1a Act of Energy Law. There can be only received one type of certificate in the case of cogeneration eligibility while the unit is entitled to obtain of yellow and violet certificate.
Flexible solutions for gas turbines in cogeneration
Ruud van Groenewoud, Sales Engineer at OPRA Turbines stated that his company's turbines have only one moving part, which significantly reduces the failure rate. Systems are less complex than traditional gas turbines, what makes them less susceptible to damage - the service can be performed once a year, and then after 42,000 hours of operation. Annual work stoppages turbine survey takes only a day.
The expert stressed that the difference between the conventional gas turbine and radial turbine is such that, in this latter the air moves with the same speed as the tip of the blade, so that the fumes from the combustion chamber are not in contact with the blades, and therefore there is no corrosion. Moreover, there is no need for a cooling system, to increase the turbine efficiency. Conventional turbine can be operated with sulphated fuel at level 0,3%, while the OPRA turbine- even 3-5%. Four relatively small chambers were evenly distributed around the track of heat flow, to make sure that maintenance and repair are easy to carry. In addition, the solutions for chambers allow to achieve low emissions of nitrogen oxides. The turbines has multifuel capacity, for example when the gas pressure drops, the turbine can automatically switch to petrol. OPRA provides customers with complete solutions ready to use - closed generator unit with control systems. The set is relatively light - weighing less than 20 tons. In addition, the solutions proposed by OPRA are relatively quiet - 70-85 dB at a distance of one meter.
OPRA Turbines have been applied for example in plant producing wheat starch, in particular for drying process and during the Olympics in Sochi where electricity was used for driving the ski lift and the waste heat was used to heat the Olympic Village. Company's Technology has also been used in tobacco factory - electricity, which the plant is not able to use, is resold to the network, and the heat is used for drying tobacco - the whole system is very efficient.
Dynamic District Heating – smart response for the changing energy markets
Adam Rajewski, Sales Manager at Wärtsilä Power Plants began his presentation with an analysis of issues relating to the electro-energy network stability. According to the expert, looking into the future, it may become a problematic approach, in which the CHP plants did not participate in the regulation of the system. In the west, the term used for some time is "duck curve", which expresses the system load chart - specific curve with a morning low peak and evening high pick. It turns out that space for units, other than renewable, shrinks terribly. In some countries, in sunny and windy days, renewable power sources cover most of the electricity demand. However, a certain amount of centrally dispatched power plants must be maintained at the same time, so the system "does not collapse" when suddenly the weather situation changes. In addition, the mix should have place for other units – which are not subject to disposal and non-renewable energy sources - such as power plants.
To meet these challenges, the CHP must be flexible. Installations operating on difficult markets, where the price of energy is sometimes negative, must tap into the energy market and help balancing the system. To do this, first of all, the installation must have appropriate technical features such as: fast start, insensitivity to frequent disturbances (low operating costs), must be able to work with different loads. Installations with reciprocating engines of great power, supplied by the company Wartsila, are able to start up and reach full power in the period from 3 to 10 minutes (in the case of liquid fuel engines it can be less than 60 seconds, but for economic reasons are not applied in the CHP plants, only used in nuclear power plants as a source of power reserve).
Although unusually Wärtsilä solutions seem to be applicable on Polish soil only in the future, with the support system they can be profitable right now. It may be surprising, since the motor systems have a lower electrical efficiency then gas-steam blocks. Relatively small gas-steam units operating in full cogeneration (in level of 100 MW) have an efficiency of about 50%, and contemporary engines reach 48%, so the overall efficiency in both cases is similar (engine efficiency is compensated by a higher heat production). The key difference is the difference in the cost of investment, because even though the engines are in a similar price for gas turbines, a steam unit is much more expensive, so the engine unit costs much cheaper. Analysis of the profitability studies are complex - they can be obtained directly from Wärtsilä employees.
Cogeneration problems seen by a large manufacturer
Andrzej Rubczyński, Director of the Department of Regulatory and Legislative, PGNiG Termika participating in the work of PTEZ (Polish Society of Professional Power), IGCP (Polish District Heating Chamber of Commerce) and the IEP (Chamber of Industrial Energy and Energy Consumers), is working on the preparation of proposals for a future support system for cogeneration, which would be consistent with the guidelines formulated by the European Commission. The discussion has begun on the State energy policy to year 2050. Foundations of energy security are to consist of: developed infrastructure, diversified sources, and energy efficiency. 93 million tonnes of lignite and stone coal are consumed by electricity production, of which 55 million tonnes are lost. In the fuel-saving era this kind of economic energy model is defective. According to the estimates, there is potential in Poland to build 4-5 GW of CHP power. Currently, the Ministry of Economy is still working on the so-called "heating map for Poland", and it should not differ from previous studies of Warsaw University of Technology, according to the speaker.
Rubczyński drew attention to the high potential of gas cogeneration and biomass / waste. The expert criticized the new draft of energy policy, which anticipates the use of coal for the CHP needs: "It seems to me that the carbonaceous fuel in urban areas is not the right choice, the fuel that should dominate should have low or zero carbon emission, as biomass and waste; the fuels that are local."
On the declarative level cogeneration is doing well. In various documents, the State anticipates its development, but the concern is stagnation lasting for a decade in the level of installed cogeneration capacity. Today, the market price of electricity affects the coal plants, which also need a surcharge. As the result, the market mechanism is directing money flows to power plants facing liquidation. Also, to have reserve power in the system, as a result of introducing the power market mechanism, a some financial flow will be directed to maintaining reserves. Subsidies are also needed for RES and for cogeneration.
When creating the volume of subsidies for energy, the political problem is the price of heat. If you would like to remodel heating companies - having old water boilers – into gas power plants, the price per GJ of heat will rise from 40 to 70 PLN. Are the local authorities, which very often are the owners of the PEC, will agree to double the price of heat to the citizens? If we want to develop distributed cogeneration, we should do something with that fact. What price level of heat is acceptable? Surcharge should depend on the type of technology, and on whether there is remodeling or building a greenfield investment. Director Rubczyński stressed that the amount of subsidies should be correlated with achieving CO2 reduction and social benefits.
Avoiding over-support and the incentive effect
The European Commission's guidelines indicate that the incentive effect should occurs only when a beneficiary requires the financial help to make a profitable investment. For example, if someone get subsidized on a project that in itself is profitable, they run a risk of not receiving the support. So there is a very urgent need to develop applications that an investor should submit to the appropriate authority, which authority will confirm (or deny) that the support is needed to company, because otherwise the project will be unprofitable.
Rubczyński also draws attention to the cost of implementing RES policies by the EU. To achieve 8TWh of power, in case of wind power it can only be electricity; in case of cogeneration (eg. biomass), it can also be heat (RES). Windmill will have the expected surcharge of approx. 150 PLN, so for 8TWh will receive 1.2 billion PLN. CHP has higher costs. For every MWh the expected subsidiary is 200 PLN, so it looses out. However, the cost of achieving 8TWh renewable energy by CHP is only 480 million PLN. If we make further calculations taking into account the size of the final recipient market (120 TWh), the achievement of the EU target using wind energy will increase electricity prices by approx. 10 PLN, and if we would do it with rebuilt for biomass cogeneration, the price of electricity will rise only by approx. 4 PLN. The price of heat (regulated by law) will not change. Unfortunately, the Act on RES do not include that kind of solutions, and introduces a restriction preventing the submission of bids by CHP – which dooms them for failure.
Andrzej Rubczyński calls forth: "If we care about the development of cogeneration, draw the attention of Ministry that the CHP in the upcoming energy law is treated with neglect ... too little is being said about the effects and benefits of the cogeneration development." According to Director Rubczyński there must be quickly completed the process of notification, concerning the yellow and red certificates. Also, the burning problem of incentive and makeshift legislation acceptable to the committee must be completed before the date of application of more stringent emission standards.
ORC cogeneration plants overview
Giorgio Za, is Sales Area Manager in Turboden, a Mitsubishi Heavy Industries company, and a global leader in Organic Rankine Cycle (ORC) turbogenerators. A characteristic feature of this product is that it could take advantage of a variety of heat sources. ORC turbogenerator is an alternative to the steam turbine. The expert said that Turboden mostly had installed its technology in plants burning biomass, but recently the company is working on a lot technologies of heat recovery, as well as solutions that use solar energy or geothermal energy. ORC turbogenerator is composed of a variety of heat exchangers and a turbine (other than steam), and instead of oil in the circuit is an organic liquid, which results in a smaller decrease in enthalpy and higher efficiency.
Turboden devices can be used in plants with a capacity of 1 to 10 MW, whose main purpose is the use of heat (thermal power plants, pellets, granulate, MDF producers). Among the advantages of ORC turbogenerators, the representative of the Italian company also mentioned the possibility of operating at partial load. At 50% load efficiency of electricity generation could be about 90%. This is important especially in summer, when the heat demand is lower. Giorgio Za stressed that his company is able to design a turbine working in different temperature ranges and optimize its performance depending on what the temperature in the capacitors is most desirable by the client.
Energy from waste as apotential fuel for power plants
Andreas Puchelt, Managing Director at WasteTec, company belonging to Vecoplan, reminded participants that the MBT technologies (Mechanical Biological Treatment) are aimed at separating the calorific fraction of the waste, which later can become SRF fuel (Solid Recovered Fuel), for example in cogeneration units. MBT solutions schematically consist of three phases: mechanical pre-treatment (grinding), optional biological treatment (decomposition, drying, anaerobic digestion), and refining step (screening, separation). One of the main requirements in the development of MBT plants are the requirements of the boiler - what kind of combustion or gasification technology will be carried out. Puchelt emphasized that approximately 50% of the batch of waste may be converted into SRF with high calorific value, wherein the organic fraction may issue at a level of from 60% to 70%.
MBT treatment process can always be adapted to the client needs, depending on on what purposes he needs the SRF or RDF (Refused Derived Fuel) fuels. In the case of the latter type of fuel, adapted mainly for plants with CFB boiler (Circulating Fluidized Bed boiler), there is only pure mechanical treatment process. Organic fraction of RDF is usually approx. 10-20% of times. Both fuels are used in Germany for many years, high quality SRF for example in Jänschwalde power plant. Before, plants producing SRF had to pay to get rid of this fuel, now companies using these fuel are paying them.
Ways to cope with environmental risk
Łukasz Jastrzebski, Underwriter in Department of Environmental Insurance, AIG, stated that environmental insurance appeared in Poland only few years ago, before the mentioned damages were uninsurable. In 2004 he was introduced so called ELB Directive (Directive no 2004/35/EC of the European Parliament and of the Council dated on 21st April 2004.), which aim was to standardize regulations for environmental damage throughout the European Union. In order to fulfill the obligation, Poland introduced on 13rd April 2007 a law on prevention of environmental damage and its repair, according to which the users of the environment are responsible for causing environmental damage or imminent threat of damage. In 2008 came into effect two important implementing regulations: Regulation of the Minister of Environment dated on 30th April 2008 concerning the evaluation criteria of environmental damage and the Regulation of the Minister of Environment dated on 4th June 2008 concerning the types of corrective actions and conditions and how they are conducted. The new legal reality led to a significant increase in costs associated with the repair of environmental damage. In accordance with the "polluter pays" principle, always the cost of preventive or repair actions shall be covered by the environment "user" (before costs were covered primarily by the state administration). The Act indicates that corrective actions have to be agreed in its terms with environmental protection authority, which in Poland is GDOŚ (General Directorate for Environmental Protection).
AIG representative also proclaimed that, according to Art. 74 paragraph. 3 of the Polish Constitution, there is universal access to information about the environment and its protection. The environment and its protection is defined as messages about the environment (or its element), concerning its status, evaluations, intentions, in matter of its purpose or its usage, the expected impact on the surroundings and measures to counter this impact. Jastrzebski presented to participants several examples of environmental damage, among others, this year's spill of fuel oil in Kozienice, train crash in Gutkowo and accident in Wilczowola in 2012. The expert stressed that repair of environmental damages takes years and requires a huge investment. AIG offers different mechanisms giving environmental risk insurance - their detailed specifications may be obtained by contacting the company.
Funding prospects for cogeneration
Aleksandra Pabiańska, responsible in Accreo for consulting division in Europe, said that currently we are in a very interesting time between two financial perspectives - completed perspective for 2007-2013 and the forthcoming for 2014-2020. The resources of the new prospects are not available yet- we are waiting for the negotiations results with the European Commission. So far, the system consisted of three main sources: the EU funds, national funds and international funds. Larger companies, which organized investment in the cogeneration, power industry, environmental protection and recycling could benefit mainly from the Operational Programme "Infrastructure and Environment", while investments with less power/lower total cost of investment - benefit from the Regional Operational Programmes. ROP were announced for each province. National resources are primarily NFOŚiGW (The National Fund for Environmental Protection and Water Management) and WFOŚiGW (Regional Fund for Environmental Protection and Water Management) resources. A little less popular in Poland were international funds: Norwegian Funds, LIFE + and NER300.
For years 2014-2020 for companies will have more than 81 billion EUR at their disposal. This amount will be distributed into different areas. For the Operational Programme "Infrastructure and Environment" is provided 27 billion EUR and for the Regional Operational Programmes is to be used amount of 31 billion EUR. For energy efficiency and cogeneration can be consumed 513 million EUR of funds. Promoting the use of high-efficiency cogeneration is dedicated operation 4.7.OPIiŚ. Both non-repayable instruments (grants) and repayable (preferential loans) can be used. Among the national measures (NFOŚiGW and WFOŚiGW) was announced in May, the list of potential priority programs, among which was a program of support for renewable energy sources and cogeneration.
Accrreo's experts estimate that the first recruitment from the European funds will start at the beginning of 2015. According to Ms Pabiańska, now should be the start of projects preparation- applications must be always prepared in the best way, because their are always graded on a points scale. "If you begin your investment before the application, incur expenses first, sign the first contract with a potential supplier of technology, according to the legal requirements of public support the investment is started. If the investment is started, you do not meet requirement of so called incentive effect", which is necessary to obtain support"- said the representative of Accreo.
Past, current and future cogeneration investments in Poland
Dr. Zdzislaw Muras concluded that during all day of seminar most concerns aroused around the regulatory uncertainty. According to Piotr Czopek from the Department of Renewable Energy, Ministry of Economy, the State task is to create the most stable and predictable legal framework defining the investment environment, but in a long time horizon it is impossible to design an unchanging law. It's hard to say when the EC notification process will finish. A representative of the Ministry stated that the end of July was the first reading in Parlament of the draft ACT on RES and announced that in 23rd September should be issued the report on the Commission activities. According to Peter Czopek, in the draft of Act should be accepted in beginning of December,. The provisions of Chapter 4 shall enter into force from January 2016. That will start a new support system based on auction system. Representative of the Ministry informed that the government will be able to decide how many more stable sources will be supported in an auction, the investors in cogeneration should not be afraid of wind energy favoritism. Peter Czopek pointed out that the law on RES is not only the financial section (Chapter 4), as the ACT provides a number of facilities for administrative procedures. Today, the issue of certificates of origin must meet a number of requirements concerning, for example: proving the origin and type of biomass. The new project provides as a replacement of these procedures the statements submitting, which will allow to avoid conflicts and uncertainty, which will result in streamlining the whole process of based on renewable energy sources plant operation. Also a regulation is planned - amending the Implementation of the Law on the basis of Article 117, under which businesses will be led documentation for their own needs, which will have to be presented only in cases of suspected irregularities - such random controls should also help to improve the functioning of the system.
Wojciech Stawiany from the National Fund for Environmental Protection and Water Management, the organization celebrating its 25 anniversary this year, said that the current programs for CHP include, among others, the programs of supporting dispersed renewable energy: "Program for projects in the field of renewable energy sources and high efficient cogeneration" consisting of loans with the amortize possibility and subprogram "Bocian", whose enrollment continues until the 30th September, will be also continued in the coming years. In addition, the National Fund proposes to support entrepreneurs in the field of resource saving and low-carbon economy, so you can carry out audits, investment activities and reducing material consumption and water consumption of individual processes - support in the form of a loan to 75% of eligible costs - the next recruitment will be announced in the fourth quarter of this year, one can apply for a loan from 0,3 to 50 million PLN. The new program applies to energy savings in small and medium-sized enterprises - to cooperation NFOŚiGW invited four banks, which will provide bonuses after reaching energy and environmental effects - in practice, this will be the amortization from 20 up to 30%. The program will be implemented in the fourth quarter of 2014. Wojciech Stawiany also informed about the GEKON program, which is dedicated to innovative projects. The program is focesed on businesses or consortia whose leaders are entrepreneurs. In total, the National Fund with NCBIR (The National Centre for Research and Development) will allocate 400 million PLN in the form of grants.
"It seems that technology providers has adopted to the development of Polish cogeneration on variety of available and proven types of fuel. In a typical power plant half of the energy is thrown de facto into the atmosphere. Cogeneration allows much more efficient use of the gifts of nature - in fact, regardless of the fuel and technology, 85-90% of the chemical energy contained in the fuel is to grasp" - said Adam Rajewski of Wärtsilä Power Plants. The expert said that in different countries, technology providers benefit from support agencies/export credits, they are half-banking and half-political institutions helping guarantee funding for the installation. In some cases of private or PPP (Private-public partnership) investment, suppliers can opt for such a solution, in order to create demand and boost their business.
Jerzy Ziaja, President of the National Recycling Chamber of Commerce reminded that in addition to the RES objectives and efficiency as a member of the EU we have also commitments on waste. Two obvious solutions are waste storage or incineration. Developed countries have gone in the direction of a dedicated fuel production for power plants. In Poland, in almost every major city, there are power plants that could use alternative fuel made from municipal waste. The amended Act on maintaining cleanliness and order in the municipality requires within the storage the mechanical-biological waste treatment. It can mean for example separation of combustible fraction and stabilizes the biological fraction, which in practice means turning waste several weeks and later storing it. The new technology, which seems to be a much better solution consists drying the material in a short time, and then separating the non-flammable fraction and create a fuel that can be used in power plants. By building in Warsaw several MBT plants it could be develop that fuel from waste would have a stable price for 20 years.
Zbigniew Gieleciak, CEO of Regional Centre for Water and Sewage Management SA (Regionalnego Centrum Gospodarki Wodno-Ściekowej S.A.) in Tychy reported that since 2006, the sewage treatment plant managed by him are producing biogas. Its generators are producing electricity securing more than 140% of the company needs - the surplus is sold to Tauron. According to estimates in Poland in 2020 just in the municipal sewage plants the sludge production will reach amount of 780 thousand tons of dry organic mass. Currently it is 650 thousand tonnes, of which 176 thousand tons are used - the rest goes to waste. In Poland, there were 11 installations of thermal treatment of sewage network, and only one of them uses the sludge as a source of electricity - the rest is typical incinerated. According to the CEO of RCGW the biggest barrier to the development of the mentioned usage of sludge is not treating them as biomass, and according to research biodegradable fraction in sediments is about 90-95%.
Rubczyński also added that "In Poland, we have 10 million tonnes of municipal waste, energy plantations could provide 10 million tons of biomass, and agricultural and forest biomass are another 10 million tonnes to grasp. In total, that could be 30 million tons of biomass that could replace 15 million tons of coal, which is used by power plants sector supplying district heating. We did not touch it, we pass by uninterestly this potential. There is no legislation that would adequately stimulate biomass investments. Now it is creating a plan for energy policy until 2050 - it would be good if the chances would have been noticed, and later ideas implemented. Documents relating to the future of energy are largely well executed. What happened that cogeneration currently is not developing? The company director who do not fulfill the plan loses his job. "
"Fortum as one of the few investors in this difficult time investment cast to use a new power plant in the fluidized bed boiler technology, assuming the possibility of burning different fuels" - said Remigiusz Nowakowski, Head of Production Optimization and Fuel Management at Fortum Power and Heat Poland Sp. z o.o. According to the representative of Fortum the most important is that the rules were stable, because the long-term decisions should be based on assumptions, which later in the long-term will have impact on the outcome of the company. "Assuming the use of cogeneration as a technology that reasonably promotes fuel economy, despite the potential problems of depreciation, in 2010 we decided to invest in Czestochowa. Then came the problem of oversupply of green certificates on the market. Then apeared a big pathology of adding biomass to the large conventional power plants, which have been tring to develop the requirements arising from climate package "- said the representative of Fortum. Repercussion of these problems was a large oversupply of certificates and change of RES amendment concerning mainly full valued timber . The creation of system was began during its operation. The decision has caused even the annual delays in issuing certificates, which for the owner of the plant was de facto freeze of revenue stream. In 2012, it turned out that the system has not been extended, and later there is a new risk associated with the fact that the EC will treat certificates as unlawful public help - thus been created further uncertainty. Remigiusz Nowakowski said that the key factor for investment is the stability of the system.
"Some of our today's actions are contaminated with cold shower from year 2013. In 2012, a year earlier, in Lódź we converted thetypical BC50 block into 100% biomass-fired block. In 2013 we supplemented the investment spending with missing funds, because we have not received appropriate gratuities for green certificates. This had very bad influence to our owners and Poland started to become a place for them to invest, where you do not know what will happen "- with these words Sławomir Burmann began his speech, Member of the Board, Production Director at Dalkia Łódź SA. Heat demand has drastically fallen in Lódź – in the highest pick it is at the level of 1400 MWt, and Dalkia has three plants with a total capacity of 2,000 MWt. A representative of Dalkia Lódź announced that due upcoming IED requirements the oldest power source is to be turned off, it will happen at the end of March 2015. Two the newest power plants will still running. In current conditions, Dalkia Łódź does not intend to build any new cogeneration unit - held BC50 and BC100 seem to be the most flexible option. "There is accuring such thought, that in special conditions, within 3-4 years due lack of support we exclude turbine sets - but this would be contrary to logic and go back a step, and even two steps -if we move with boilers to reducing stations and heat with peak exchangers. "We considered gas investments, but for technical reasons we met with a big obstacle ... because how to enter such big amount of gas into the urban area, where there are problems of infrastructural nature? During negotiation with gas distributors we received information that for the possibility of plugging greater amount of gas we can ask them in 2017, and we need to do something with this matter in 2016, "- concluded Burmann. Representative of Dalkia Lódź also informed that the biomass blocks not quite take the exam during very cold days - then there are problems with the green fuel supplies and biomass stocks can be accumulate for about 5-6 days. In order to increase energy security, according to an expert, energy mix should be more diversified – there should be place for coal, biomass, gas and waste - the last ones would be appropriated especially in smaller satellite towns.
Edited by: Kamil Szkup
Translated by: Anna Radkiewicz
The article was prepared on the basis of lectures and materials from the second edition of the International Seminar on "Development prospects of cogeneration", which was held on 21st-22nd August 2014 and was organized by CBE Poland.
Organizing a seminar we established cooperation with more than 40 entities, we host participants both from Poland and abroad. Seminar strategic partners included: PGNiG Termika, Wärtsilä Power Plants, Turboden, AIG, Vecoplan, Opra Turbines and Accreo. Exhibitors included: SOKRATHERM and BMH Technology. Honorary Patronage of the seminar were Association of Independent Combined Heat and Power Producers and The World Alliance for Decentralized Energy. In addition, the event was created in cooperation with the Ministry of Economy, the National Fund for Environmental Protection and Water Management, Fortum Power and Heat Poland Sp. z o.o, Dalkia Łódź SA, Wärtsilä Power Plants, Regional Center for Water and Sewage Management SA in Tychy and INSTAL-FILTER SA. Simultaneous translation was provided by company Bireta.
