Summary of the EUEA expert discussion on cogeneration

On April 27, EUEA organized an expert discussion dedicated to cogeneration and its role in ensuring energy security and sustainable development of Ukraine.

Discussion record (in Ukrainian):  https://www.facebook.com/EUEA.UA/videos/3507909242828002

Speaker presentations: https://drive.google.com/drive/folders/1PfsNAiQkQLdlIbd_O4APtL6EDTFkfJSD?usp=sharing 

Relevance

As the EUEA director, Kateryna Polyakova, noted: “the development of cogeneration is currently very relevant both in the context of strengthening energy security through the construction of decentralized generation and increasing energy efficiency, and in the context of decarbonization of the economy and energy transition.”

On March 17, the President of Ukraine signed the Law of Ukraine on the Development of Highly Efficient Cogeneration. The law defines the requirements for the introduction of highly efficient production of heat and electricity, as well as the implementation of a mechanism for issuing guarantees of origin of electricity produced by cogeneration plants, the execution of which will be delegated to the State Agency for Energy Efficiency and Energy Saving of Ukraine  (SAEE).

Statistics and benefits

Viktor Bilko, Deputy Head of the State Agency on Energy Efficiency and Energy Saving of Ukraine (SAEE) noted that according to the Law on the development of highly efficient cogeneration, savings of more than 10% of primary energy are expected for plants with an installed capacity of more than 1 MW, and for small ones (less than 1 MW) – savings of more than 0% of primary energy. The advantages of such installations are development of highly efficient heat supply systems, creation of conditions for reconstruction of inefficient generation, fulfillment of international obligations, improvement of energy efficiency and reduction of CO2 emissions.

So, among the main responsibilities assigned to SAEE are conducting qualification of cogeneration plants with issuance of a certificate of qualification (39 plants were qualified in 2022); maintaining a register of the guarantee of origin (issuance, use and termination); issuance of an electronic document confirming the guarantee of origin of electricity from highly efficient cogeneration. According to Mr. Bilko, one of the incentives for the use of cogeneration plants is the exemption from payment of the excise duty, which is 3.2% of the sale of electricity.

Mr. Bilko also noted that the Verkhovna Rada recently adopted the Law on the creation of the State Fund for decarbonization and energy transformation, within the framework of which state target programs in the field of energy efficiency, RES, and decarbonization will be developed; programs for reducing the price of loans and leasing obligations, etc.

Details in the videorecord:  https://www.facebook.com/EUEA.UA/videos/3507909242828002 [00:04:00-00:13:00]

Possibilities of cogeneration based on gas-piston units/best practices

According to Ihor Petryk, Director of European Market Development at Wärtsilä Energy, gas piston stations are now becoming very popular. Firstly, this technology is characterized by high fuel efficiency (typical efficiency of about 50%), another advantage of this technology is that it is highly maneuverable (quick start/stop; partial load in a wide range without loss of efficiency; repetition of cycles during the day). Flexibility and maneuverability will allow access to various electric and thermal energy markets, by separating electricity production from heat supply to consumers through the construction of a battery tank.

An example of a typical Wärtsilä station, an example of electricity generation separated from heat supply and a concept of modeling a district heating system in a regional center in the video: https://www.facebook.com/EUEA.UA/videos/3507909242828002 [00:14:00 – 00:46:00]

Implemented projects in Ukraine

Yevhen Khymoroda, Sales Director at KTS ENGINEERING, which is a Jenbacher distributor, noted during the discussion that there are already 156 Jenbacher units installed in Ukraine on various types of equipment fuel. The equipment has already been installed in such segments as: industrial and communal enterprises, associated oil gas, energy supply of oil fields, greenhouse farms, biogas, mine methane, waste water, special gases, landfills.

Among the examples of projects, Mr. Khymoroda mentioned:

– Coca-Cola Beverages Ukraine (6.1 MW) is characterized by the production of electrical thermal energy, as well as additional – cold (trigeneration), as well as quad generation – this is the purification of exhaust gases and the production of pure CO2, with a purity of 99.99% in order for this CO2 use for carbonated drinks. 

– Teofipol Energy Company (26.1 MW) is the largest biogas plant in Europe, which uses several technologies for the production of biogas.

More details in the speech: https://www.facebook.com/EUEA.UA/videos/3507909242828002 [00:47:00-01:03:00]

Introduction of cogeneration plants in the private sector

Serhiy Savchuk, Chief Business Development Officer at VITAGRO, emphasized that nowadays the issue of decentralized generation development is highly important. Mr. Savchuk presented the development plans of the VITAGRO group of companies, which is engaged not only in agrarian business, but also in the processing industry. Among the main ones are plans to provide electricity during blackouts, so a biomethane plant is already under construction. And at the Maryliv alcohol distillery, where VITAGRO plans to produce bioethanol, it is planned to install cogeneration units. The cogenerator will use the gas for the plant’s self-sufficiency in electricity, as well as for the steam required for production.

As a representative of business, Serhiy Savchuk noted that the issue of the possibility to export biomethane, as well as the implementation of state insurance programs and programs to stimulate the development of cogeneration, are among the most pressing issues for business.

Details in the video record: https://www.facebook.com/EUEA.UA/videos/3507909242828002 

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