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THE APPLICATION of BIOMASS for CHP in EUROPE REGULATION and ECONOMICS: the Case of Amynteon

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THE APPLICATION of BIOMASS for CHP in EUROPE REGULATION and ECONOMICS: the Case of Amynteon University of Piraeus, Dept. of International and European Studies, M.Sc. in Energy: Strategy, Law & Economics THE APPLICATION OF BIOMASS FOR CHP IN EUROPE REGULATION AND ECONOMICS: The case of Amynteon Georgios Biniaris Piraeus, June 2020 Thesis Advisor: Assistant Prof. Athanasios Dagoumas Υπεύθυνη Δήλωση - Solemn Declaration Με ατομική μου ευθύνη και γνωρίζοντας τις κυρώσεις, που προβλέπονται από τις διατάξεις της παρ. 6 του άρθρου 22 του Ν. 1599/1986, δηλώνω ότι το έργο που εκπονήθηκε και παρουσιάζεται στην υποβαλλόμενη διπλωματική εργασία είναι αποκλειστικά ατομικό δικό μου. Όποιες πληροφορίες και υλικό που περιέχονται έχουν αντληθεί από άλλες πηγές, έχουν καταλλήλως αναφερθεί στην παρούσα διπλωματική εργασία. Επιπλέον τελώ εν γνώσει ότι σε περίπτωση διαπίστωσης ότι δεν συντρέχουν όσα βεβαιώνονται από μέρους μου, μου αφαιρείται ανά πάσα στιγμή αμέσως ο τίτλος. On my own responsibility and being fully aware of the penalties stipulated under article 22 par. 6 of Greek Law 1599/1986, I hereby declare that the intellectual work fulfilled and submitted based on the delivered master thesis is exclusive property of mine personally. Appropriate credit has been given in this diploma thesis regarding any information and material included in it that have been derived from other sources. I am also fully aware that any misrepresentation in connection with this declaration may at any time result in immediate revocation of the degree title. 1 Acknowledgements I would like to acknowledge and thank my thesis advisor Assistant Prof. Athanasios Dagoumas for the scientific guidance and valuable assistance he offered to me throughout selecting the subject and writing of this master’s thesis. Furthermore, I would like also to thank the members of the Examination Committee, Assistant Professor M. Polemis and Assistant Professor S. Roukanas for providing detailed and insightful comments about the research of the thesis. Moreover, I would also like to thank my niece Stavroula Biniari (lawyer) for her valuable guidance on regulatory issues. Last but not least, I would like to thank my wife Anna, for convincing me to apply for this Program of Postgraduate Studies and for her support in one way or the other during this amazing journey. Athens, June 2020 2 Keywords: biomass, combined heat and power (CHP), District Heating (DH), energy efficiency, electricity, thermal energy, Thermal Energy Storage (TES), regulation, policy Abstract The European Union (EU) is committed to reduce carbon emissions by 80-95% in 2050, when compared to 1990. To reach this ambitious objective, a shift in energy consumption to low carbon, locally produced energy, and Renewable Energy Sources (RES) is needed. The use of biomass to produce electricity, heat and fuels could significantly help towards this direction. More specifically, the generation of electricity supplemented by the production of thermal energy (Combined Heat and Power - CHP) is an efficient way το achieve EU’s targets. The produced thermal energy of the CHP plant could be used to supply District Heating Networks (DHN) of cities with cold climate. In the context of this master’s thesis, the application of biomass for CHP in Europe was studied. At the beginning was analyzed the policy framework for biomass and CHP in EU. Furthermore, an extensive analysis of the EU’s legal regime of biomass and cogeneration from it was executed. This analysis was further extended for the case of Greece. Moreover, the available technologies for biomass CHP were studied and the main advantages and disadvantages of biomass, as well as applications of CHP plants worldwide, were presented. Furthermore, a feasibility study concerning the installation of a CHP plant supplying with thermal energy the DHN of the city of Amynteon (Greece) was executed. Following a detailed energy study for the calculation of the installed electrical and thermal capacity of the specific plant, an extensive techno-economic analysis was performed, which proved that under certain conditions the relative investment could be profitable. Finally, an optimization study concerning the installation of a Thermal Energy Storage (TES) system in parallel with the CHP plant was also executed. 3 Table of Contents List of Tables ...................................................................................................................................... 7 List of Figures ..................................................................................................................................... 8 Abbreviations ..................................................................................................................................... 9 Units of Measurement ..................................................................................................................... 10 Chapter 1: Introduction ....................................................................................................................... 11 1.1 Introduction ............................................................................................................................... 11 1.2 Literature Review ....................................................................................................................... 11 1.3 Outline ....................................................................................................................................... 16 Chapter 2: Biomass Policies and Regulatory Framework in Europe and Greece ................................ 18 2.1 Introduction ............................................................................................................................... 18 2.2 Policy .......................................................................................................................................... 18 2.2.1 Facts and figures on bioenergy in the EU ............................................................................... 19 2.2.2 Types of support schemes to promote renewable energy in the EU ..................................... 20 2.3 Introduction to EU regulatory framework ................................................................................. 21 2.3.1 The European Union Legal Regime ......................................................................................... 22 2.3.2 Directive 2009/28/EC (RED-I) .................................................................................................. 22 2.3.3 Directive (EU) 2018/2001 (RED-II) .......................................................................................... 24 2.3.4 Other non-binding legal instruments ..................................................................................... 26 2.3.5 The European Union Legal Regime on Cogeneration of Heat and Power .............................. 29 2.3.6 Directive 2004/8/EC on the promotion of cogeneration ....................................................... 30 2.3.7 Directive 2012/27/EU on energy efficiency ............................................................................ 31 2.3.8 Directive (EU) 2018/2001 (RED-II) .......................................................................................... 34 2.3.9 Delegating Regulations and non-binding legal instruments ................................................... 35 2.3.10 EU Regulation for Industrial Emissions ................................................................................. 37 2.4 Greek Legal Regime for biomass and Cogeneration of Heat and Power ................................... 39 2.4.1 Introduction ............................................................................................................................ 39 2.4.2 Domestic Legal Regime ........................................................................................................... 39 2.4.3 Regulatory administrative acts and circulars .......................................................................... 47 Chapter 3: Biomass to energy conversion technologies ..................................................................... 50 3.1 Introduction ............................................................................................................................... 50 3.2 Definition of biomass ................................................................................................................. 51 3.3 Combined Heat and Power (CHP), Trigeneration and Polygeneration ...................................... 51 3.4 Biomass to Energy Conversion Technologies ............................................................................ 53 4 3.4.1 Thermochemical Conversion Technologies ............................................................................ 55 3.4.2 Combustion ............................................................................................................................. 56 3.4.3 Gasification ............................................................................................................................. 58 3.4.4 Pyrolysis .................................................................................................................................. 59 3.5 Combustion Commercial Technologies ..................................................................................... 60 3.6 Pros and cons of biomass .......................................................................................................... 62 3.6.1 Pros ........................................................................................................................................
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