French combined heat and power sales expected to boost due to EU approval

CHP power plant

French plans to support combined heat and power systems (CHP) using natural gas in power plants have been approved by the European Commission

Why the EU stimulates the combined heat and power market

Combined heat and power (CHP) saves at least 10% primary energy compared to units that produce heat and power separately

Under certain conditions, the European Commission grants state aid to member states for high efficiency combined heat and power plants. These conditions are mentioned in the Commission’s 2014 Guidelines on State Aid for Environmental Protection and Energy.

The EU rules are aimed at

  • meeting the ambitious energy and climate targets for the Single Market
  • at the least possible cost for taxpayers and
  • without distortion of competition in the single market

This is why the EU supports France

The EU regulations will help France to reach its energy efficiency and CO2 emission reduction targets by supporting the deployment of around 7 MW of additional generation capacity

What support will the French CHP market receive?

High efficiency combined CHP plants with power output up to 1MW will profit from this support. The kind of support depends on the power output:

  • Feed-in-premium on top of market price

     For combined CHP’s up to 1MW

  • Feed-in-tariff

     For plants up to 300 kilowatt

Source: Decentralized Energy.