part 1: overview of cogeneration and its status in asia - Fire

Cogeneration experiences around the world 93
Number of installations
800
700
600
500
400
300
200
100
0
Installations
Total capacity
< 0.01 0.1 - .99 1 - 9.9 > 10
Electrical capacity range, MWe
Figure 3.3 Capacity range of cogeneration units installed in the UK (1996)
3.6.1 Policies and initiatives for promoting cogeneration
3,000
2,500
2,000
1,500
1,000
Privatization of the public utilities and the on-going liberalization of the energy market have
given a boost to the cogeneration business. The majority of the small cogenerators does not
require getting a license and have been exempted from the fossil fuel levy. Even export of
power up to 500 kW is allowed with the need to have a supply license.
Government policies encourage the development of local generation, and there is a growth in
the provision of integrated energy services, as opposed to simple energy supply, an approach
which is very much compatible with cogeneration. Some of the policy changes that have
benefited cogeneration include:
- The level of supply at which a generation license is required has been increased from 10
to 50 MWe; in certain circumstances, temporary supply of power above 50 MWe is
allowed; the rule of 51 per cent “own use” has been relaxed;
- The rules regarding supply of electricity have been changed, giving more flexibility for
cogeneration scheme operation and the opportunity for more on-site customers to benefit
from it;
- With the introduction of net trading, the burden on the cogenerator is removed as the
electricity that is used on-site does not have to be sold through the pool;
- Cogeneration involving community heating, when it displaces electrical heating system,
can be supported under the Public Electricity Suppliers’ obligations;
- The Electricity Act has been amended to favour municipal waste based cogeneration; long
term contracts are signed for electricity from renewable sources;
0
500
Total capacity, MWe