Cogeneration & Trigeneration – How to Produce Energy Efficiently A practical Guide for Experts in Emerging and Developing Economies Published by: Cogeneration & Trigeneration – How to Produce Energy Efficiently A practical Guide for Experts in Emerging and Developing Economies 4 CONTENTS Contents Abbreviations and Acronyms ...............................................................................................................8 1 Introduction ..........................................................................................................................................13 2 Co- and Trigeneration Technologies and their Application ............................................18 2.1 Introduction and Definitions .......................................................................................................19 2.2 Cogeneration Technologies ...........................................................................................................23 2.3 Trigeneration Technologies ..........................................................................................................23 2.3.1 Absorption Technology ........................................................................................................24 2.3.2 Adsorption Technology ........................................................................................................25 2.4 Gas Engines ...........................................................................................................................................26 2.5 Steam Turbines .....................................................................................................................................29 2.6 Organic Rankine Cycle (ORC) .......................................................................................................31 2.7 Fuel Cells .................................................................................................................................................33 2.8 Bio Sources and Co-/Trigeneration Applications ..............................................................34 2.9 Solid Biomass .......................................................................................................................................34 2.10 Bioethanol and Biodiesel (Liquid Biomass)............................................................................34 2.11 Biogas ........................................................................................................................................................35 2.12 Networks and Thermal Storage Systems for Heating and Cooling ...........................37 2.13 Overview and Evaluation of Co- and Trigeneration Technologies ...........................40 2.14 Areas of Application for Co- and Trigeneration Technologies ....................................41 3 Relevance of Co- and Trigeneration for Development Cooperation ............................46 3.1 Overview .................................................................................................................................................46 3.2 Effects of Co- and Trigeneration ................................................................................................47 3.3 Contribution to International Policy Goals ..........................................................................47 3.3.1 International Energy and Climate Efficiency Policy Goals ...............................47 3.3.2 International Development Goals ...................................................................................48 3.4 Contribution of Co- and Trigeneration to German International and Development Cooperation Goals ......................................................................................50 3.4.1 Climate Protection .................................................................................................................50 3.4.2 Energy Security ........................................................................................................................51 3.5 Contribution of Co- and Trigeneration to National Goals in Developing Countries ......................................................................................................................52 3.5.1 National Energy Systems .....................................................................................................52 3.5.2 Balance of Payments and Economic Development ................................................52 3.6 Prerequisites to Harnessing Co- and Trigeneration Benefits .......................................54 3.7 Conclusions ...........................................................................................................................................54 CONTENTS 5 4 Determinants for the Application of Co- and Trigeneration ...........................................58 4.1 Determinants of Co- and Trigeneration at the National Level ..................................58 4.1.1 Potential ........................................................................................................................................58 4.1.2 Policy Environment ................................................................................................................62 4.1.3 Regulatory Environment .....................................................................................................64 4.1.4 Institutional Framework ......................................................................................................64 4.1.5 Availability of Skills ................................................................................................................65 4.1.6 Value of Capacity to the Electricity System ...............................................................66 4.1.7 Incentive Schemes ..................................................................................................................67 4.1.8 Capital Subsidies ......................................................................................................................69 4.1.9 Financing Co-/Trigeneration Investments .................................................................69 4.2 Determinants of Successful Co- and Trigeneration Projects .......................................70 4.2.1 Infrastructure ............................................................................................................................70 4.2.2 Availability of Fuel and Technology ..............................................................................71 4.2.3 Own Use and Export of Electricity (Willing Buyer) ...............................................72 4.2.4 Design Philosophies for Projects ......................................................................................73 4.2.5 Costs ...............................................................................................................................................75 4.2.5.1 Costs of Cogen Units ...........................................................................................................75 4.2.5.2 Costs of Cogen Projects .....................................................................................................76 4.2.5.3 Transaction Costs and Project Implementation Costs ......................................80 4.2.6 Financing and Promotion Schemes on Project Level ...........................................80 4.2.7 ESCos and Contracting .........................................................................................................81 4.2.8 Economic Analysis of Projects ..........................................................................................82 4.2.9 Investment Risks ......................................................................................................................83 5 Recommendations on the Promotion of Co- and Trigeneration ...................................86 5.1 Introduction .........................................................................................................................................86 5.2 Energy Policy and Sector Framework Conditions ............................................................86 5.3 Incentive Schemes ..............................................................................................................................87 5.4 Human Capacity Development ...................................................................................................89 5.5 Awareness-Raising and Demonstration ..................................................................................91 5.5.1 Awareness-Raising .................................................................................................................91 5.5.2 Development of Demonstration Projects ....................................................................92 6 TABLE & FIGURES Tables & Figures Table 1 Structure of the Co- and Trigeneration Guide ..........................................................15 Table 2 Case Studies Overview ..........................................................................................................18 Table 3 Types of Fuel per Cogeneration Technology, Application and Sector ...........22 Table 4 Biogas Yield from Different Types of Feedstock .....................................................36 Table 5 Types of Thermal Energy Storage System ..................................................................39 Table 6 Overview of Cogeneration Features per Application Segment .......................42