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

94 Part II: Cogeneration experiences in Asia and elsewhere
- Local authority capital finance rules have been relaxed to facilitate cogeneration and
community heating through private sector partnership; such schemes are also eligible for
revenue support.
There are several constraints to cogeneration development in the United Kingdom, the most
notable among them is the need for high investment even though one can except to get
attractive returns and cheap energy. Added to this is the overall volatility in the energy market
and a perception of falling electricity prices that lead to uncertainty in decision making.
Even though cogeneration and district heating are well established and found to be generally
reliable, there is still a lack of awareness and distrust of the technology and its benefits. Some
potential cogenerators are concerned about the commercial impact of protracted negotiations
with regional electric companies, or do not comprehend well the regulatory and market
complexities.
The next few years offer a number of key opportunities for cogeneration to grow. Complete
liberalization of the energy market will allow all energy users to choose their energy suppliers.
As a result of privatization and market liberalization, energy companies are expanding their
range of products and services. There is an increasing trend to shift from simple fuel and
power supply to integrated energy service packages. Expertise of energy service companies
and their ability to finance projects will provide excellent opportunity for cogeneration to grow.
Greater development of community heating with the participation of local authorities and
private sector developers will provide new opportunity for cogeneration. Energy recovery and
cogeneration from waste will represent the best practicable environmental option and provide
a major opportunity for sustainable waste management.
Government has set an objective to establish an undistorted market for cogeneration and to
eliminate any unnecessary barrier so that the target of 5,000 MWe by the year 2000 is met. To
start with, government seeks cost effective options for applying cogeneration to its own estate
and to persuade the public sector to follow suit. Currently over a half of all cogeneration
installations are in the public sector.
Government is also working with the cogeneration industry and other partners in order to
develop new cogeneration market where there is unrealized potential. Efforts are being made
to replicate the experience already gained in industries and buildings where cogeneration is
well accepted.
Lastly, government intends to continue the promotion of this technology by keeping the
decision-makers informed through the “Energy Efficiency Best Practice” programme and
other environmental and energy management initiatives.