REPUBLIC of SLOVENIA MINISTRY of INFRASTRUCTURE Expert

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REPUBLIC of SLOVENIA MINISTRY of INFRASTRUCTURE Expert REPUBLIC OF SLOVENIA MINISTRY OF INFRASTRUCTURE Reporting by the Republic of Slovenia to the European Commission Expert basis for a comprehensive assessment of options for cogeneration and district heating Final report April 2017 Ministry of Infrastructure REPUBLIC OF SLOVENIA MINISTRY OF INFRASTRUCTURE Expert basis for a comprehensive assessment of options for cogeneration and district heating Final report Ministry of Infrastructure Langusova ulica 4 1535 Ljubljana, Republic of Slovenia http://www.mzi.gov.si April 2017 | Expert basis for a comprehensive assessment of options for cogeneration and district heating | Ministry of Infrastructure | TABLE OF CONTENTS TABLE OF CONTENTS __________________________________ 1 ABBREVIATIONS USED _________________________________ 5 SUMMARY ___________________________________________ 6 1. DESCRIPTION OF HEATING AND COOLING DEMAND _____ 10 1.1 END-USE ENERGY CONSUMPTION MODEL FOR HEATING AND COOLING IN THE REPUBLIC OF SLOVENIA .................................................................................................... 10 1.2 GROUNDS AND INFORMATION SOURCES ................................................................ 11 2. FORECAST OF THE CHANGING HEATING AND COOLING DEMAND ________________________________________ 13 2.1 PROJECTIONS OF MACROECONOMIC FACTORS ......................................................... 13 2.2 PROJECTIONS OF ENERGY CONSUMPTION IN HOUSEHOLDS ....................................... 14 2.3 PROJECTIONS OF ENERGY CONSUMPTION IN THE SERVICE SECTOR ............................. 16 2.4 PROJECTIONS OF ENERGY CONSUMPTION IN INDUSTRY ........................................... 20 3. MAPPING THE REPUBLIC OF SLOVENIA WITH SPATIAL AND ATTRIBUTE DATA _________________________________ 26 4. IDENTIFYING THE HEATING AND COOLING DEMAND THAT COULD BE MET USING HIGH-EFFICIENCY COGENERATION 32 4.1 ANALYSIS OF EXISTING PRODUCTION FACILITIES ................................................... 32 4.2 THE POSSIBILITY OF EXTENDING THE EXISTING SYSTEMS FOR HEATING AND COOLING .. 36 4.2.1 Analysis of linear heat density ................................................................................................... 36 4.2.2 Analysis of the available distribution system potential using the linear heat density criterion ........... 38 4.2.3 Analysis of projected heating demand ........................................................................................ 40 4.2.3.1 Methodology description .............................................................................................................. 40 4.2.3.2 Analysis results ........................................................................................................................... 45 5. DEFINING THE POTENTIAL FOR ADDITIONAL HIGH- EFFICIENCY COGENERATION ________________________ 47 5.1 OVERVIEW OF HIGH-EFFICIENCY COGENERATION TECHNOLOGIES .............................. 47 5.1.1 Combined cogeneration method using gas and steam turbines (Combined Cycle Gas Turbine – CCGT) .................................................................................................................................... 48 5.1.2 Biomass cogeneration .............................................................................................................. 48 5.2 POTENTIAL OF PLANNED COGENERATION PLANTS .................................................... 50 5.3 POTENTIAL OF HEAVILY RENOVATED EXISTING COGENERATION PLANTS ...................... 50 5.4 POTENTIAL OF WASTE HEAT FROM INDUSTRIAL SOURCES ......................................... 50 5.5 NATIONAL POTENTIALS FOR HIGH-EFFICIENCY COGENERATION ................................. 50 1 | Expert basis for a comprehensive assessment of options for cogeneration and district heating | Ministry of Infrastructure | 6. IDENTIFYING OPTIONS TO INCREASE ENERGY EFFICIENCY OF DISTRICT HEATING AND COOLING INFRASTRUCTURE _ 53 6.1 ANALYSIS OF THE EXISTING SITUATION ................................................................ 53 6.1.1 Efficiency of existing production facilities ................................................................................... 53 6.2 IDENTIFYING OPTIONS TO INCREASE ENERGY EFFICIENCY OF DISTRICT HEATING AND COOLING INFRASTRUCTURE ................................................................................ 57 6.3 REVIEWING THE POSSIBILITY OF INCREASING ENERGY EFFICIENCY OF THE EXISTING INFRASTRUCTURE .............................................................................................. 60 7. SHARE OF HIGH-EFFICIENCY COGENERATION, THE POTENTIAL ESTABLISHED AND PROGRESS ACHIEVED ____ 62 7.1 OVERVIEW OF MICRO-COGENERATION TECHNOLOGIES ............................................ 62 7.1.1 Micro-cogeneration based on an internal combustion engine........................................................ 62 7.1.2 Stirling-engine-based micro-cogeneration ................................................................................... 63 7.1.3 Fuel-cell-based micro-cogeneration ........................................................................................... 63 7.2 TECHNICAL REQUIREMENTS FOR THE RATIONAL USE OF ENERGY AND THERMAL PROTECTION IN BUILDINGS ................................................................................ 65 7.2.1 Proposed energy efficiency measures ........................................................................................ 65 7.3 PROPOSAL FOR IMPROVING THE EXISTING SYSTEM AND MONITORING PROGRESS ......... 68 8. ESTIMATE OF PRIMARY ENERGY TO BE SAVED __________ 69 8.1 INTRODUCTION ................................................................................................ 69 8.2 ANALYSIS OF THE CURRENT SITUATION ................................................................. 69 8.3 ESTIMATE OF FUTURE CONSUMPTION OF USABLE HEAT ............................................. 70 8.4 REALISING SAVINGS IN ENERGY CONSUMPTION ..................................................... 70 8.5 POTENTIAL ENERGY SAVINGS .............................................................................. 71 8.6 ESTIMATE OF PRIMARY ENERGY TO BE SAVED ......................................................... 72 9. AN ASSESSMENT OF PUBLIC SUPPORT MEASURES FOR HEATING AND COOLING ___________________________ 73 9.1 ANALYSIS OF RELEVANT EU REGULATIONS (TREATIES, DIRECTIVES, REGULATIONS AND GUIDELINES) THAT ALLOW THE GRANTING OF STATE AID .......................................... 73 9.1.1 Treaty on the Functioning of the European Union ....................................................................... 73 9.1.2 Guidelines on State aid for environmental protection and energy 2014–2020 ................................ 74 9.1.3 Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty ................ 75 9.1.4 Commission Regulation (EU) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid ......................................................................................................................................... 76 9.2 ANALYSIS OF REGULATIONS OF THE REPUBLIC OF SLOVENIA GOVERNING STATE AID .... 76 9.2.1 Energy Act (UL RS Nos 17/14 and 81/15)................................................................................... 77 9.2.2 Rules on support for electricity generated from renewable energy sources and from high- efficiency cogeneration (UL RS No 74/16) .................................................................................. 80 9.2.3 Decree on the method of determining and calculating the contribution for ensuring support for the production of electricity from high-efficiency cogeneration and renewable energy sources (UL RS Nos 36/2014 and 46/2015) ............................................................................................ 80 2 | Expert basis for a comprehensive assessment of options for cogeneration and district heating | Ministry of Infrastructure | 9.2.4 Legal Act on support for the production of electricity from renewable energy sources and high-efficiency cogeneration (UL RS Nos 38/14, 46/15 and 56/15) ............................................... 80 9.2.5 Decree on energy savings requirements (UL RS No 96/14) .......................................................... 80 9.3 OVERVIEW OF THE ORGANISATIONAL AID STRUCTURE ............................................. 81 9.3.1 Ministry of Infrastructure .......................................................................................................... 81 9.3.2 Energy Agency of the Republic of Slovenia ................................................................................. 81 9.3.3 Eco Fund, Slovenian Environmental Public Fund ......................................................................... 82 9.3.4 Aid centre ............................................................................................................................... 82 9.3.4.1 Eco Group................................................................................................................................... 83 9.4 OVERVIEW AND ANALYSIS OF DOCUMENTS RELATED TO AID FOR HEATING AND COOLING 83 9.4.1 Energy balance of the Republic of Slovenia ................................................................................ 83 9.4.2 Report on achieving national targets for RES and CHP in the period 2012–2014
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