cospp20140910-dl

WORLD ALLIANCE FOR DECENTRALIZED ENERGY

In Association With

September - October 2014

WHY HEAT PUMPS ARE EMERGING AS A KEY TECHNOLOGY IN EUROPE n MILAN AIRPORTS CHP PLANT SAVES THROUGH

ENERGY MODELING n FIGURING COGENERATIONS ENERGY BALANCE n DRIVERS FOR GAS ENGINE MARKET GROWTH

Turkeys light at the end of the tunnelCHP market set for growth

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Contents

2 Cogeneration & OnSite Power Production | September - October 2014 www.cospp.com

Volume 15 Number 5


10

10 Turkey country report Changes in Turkeys energy mix and legislative landscape mean tough times ahead for the nations CHP sector, but it could rebound if the right energy policy is put in place

and stability in neighbouring countries can be secured.

By Paul Cochrane

16 Turkey project roundup A view of projects currently underway in Turkeys dynamic cogeneration/CHP sector. By David Appleyard

20 Hotting up for heat pumps A look at the European market for heat pumps, which are emerging as one of the key low-carbon technologies to lower the carbon content of heat, rather than power, supplies.

By Steve Hodgson

26 Milan airports tri-generation profts soar Energy modelling has allowed the Milan airports cogeneration plant to monitor plant energy performance in real time and optimise the power generation process, resulting in

signifcant savings.

By Aleksandra Peneva

30 Figuring cogenerations energy balance In the second of a series of articles on the energy balance of cogeneration installations, Dr Jacob Klimstra provides the necessary background knowledge for an installation driven by

a reciprocating gas engine.

By Dr Jacob Klimstra

34 Drivers for gas engine market growth Favourable trends shown by two core market drivers, spark spread and policy incentives, indicate growing optimism for sales of gas engines in the UK market to 2020, especially

sub-2 MWe engines.

By Dina Darshini

Features

WORLD ALLIANCE FOR DECENTRALIZED ENERGY

In Association With


WHY HEAT PUMPS ARE EMERGING AS A KEY TECHNOLOGY IN EUROPE n MILAN AIRPORTS CHP PLANT SAVES THROUGH

ENERGY MODELING n FIGURING COGENERATIONS ENERGY BALANCE n DRIVERS FOR GAS ENGINE MARKET GROWTH

Turkeys light at the end of the tunnelCHP market set for growth

Cover photograph: Distributed energy is spreading in Turkey, even

to rural communities such as this in Cappadocia, central Anatolia. See feature article starting on page 10.

PHOTO: Emma Jackson.

1409cospp_2 2 9/8/14 2:21 PM

www.cospp.com Member, BPA Worldwide

www.cospp.com

ISSN 14690349

Chairman: Frank T. Lauinger

President/CEO: Robert F. Biolchini

Chief Financial Offcer: Mark C. Wilmoth

Group Publisher: Glenn Ensor

Publisher: Dr. Heather Johnstone

Managing Editor: Dr. Jacob Klimstra

Associate Editor: Tildy Bayar

Consulting Editor: David Sweet

Contributing Editor: Steve Hodgson

Design: Keith Hackett

Production Coordinator: Kimberlee Smith

Sales Manager: Natasha Cole

Advertising:

Natasha Cole on +1 713 621 9720

or [email protected]

Editorial/News:

e-mail: [email protected]

Published by PennWell International Ltd,

The Water Tower,

Gunpowder Mill, Powdermill Lane,

Waltham Abbey, Essex EN9 1BN, UK

Tel: +44 1992 656 600

Fax: +44 1992 656 700

e-mail: [email protected]

Web: www.cospp.com

Published in association with the World Alliance for Decentralized Energy (WADE)

2014 PennWell International Publications Ltd. All rights reserved.No part of this publication may be reproduced in any form orby any means, whether electronic, mechanical or otherwiseincluding photocopying, recording or any information storage orretrieval system without the prior written consent of the Publishers.While every attempt is made to ensure the accuracy of theinformation contained in this magazine, neither the Publishers,Editors nor the authors accept any liability for errors or omissions.Opinions expressed in this publication are not necessarily those ofthe Publishers or Editor.

Subscriptions: Qualifed professionals may obtain freesubscriptions by visiting our website at www.cospp.com andcompleting an online subscription form. Extra copies of theseforms may be obtained from the publisher. The magazine mayalso be obtained on subscription; the price for one year (sixissues) is US$133 in Europe, US$153 elsewhere, including airmail postage. Digital copies are available at US$60. To start asubscription call COSPP at +1 847 763 9540. Cogeneration andOn-Site Power Production is published six times a year by PennwellCorp., The Water Tower, Gunpowder Mill, Powdermill Lane, WalthamAbbey, Essex EN9 1BN, UK, and distributed in the USA by SPP at 75Aberdeen Road, Emigsville, PA 17318-0437. Periodicals postagepaid at Emigsville, PA. POSTMASTER: send address changes toCogeneration and On-Site Power Production, c/o P.O. Box 437,Emigsville, PA 17318.

Reprints: If you would like to have a recent article reprinted for aconference or for use as marketing tool, please contact Rae LynnCooper. Email: [email protected].

30

20

4 Editors Letter

6 Insight

8 WADE Comment

40 Genset Focus

44 WADE Pages

47 Diary/Advertisers Index

Regulars

26

16

1409cospp_3 3 9/8/14 2:21 PM

Editors Letter


The law of diminishing returns

If you want too much, your desires will

backfre because the ultimate price will be

too high. On my desk, I have a picture of a

pike that caught its fnal prey, a pikeperch.

Both species are fsh of prey, but a pike tends

to go for the larger catch. In the case of my

picture, the pikeperch is way too large for the

pike to swallow; the pike died because he

could not manage his haul.

One sometimes sees the same story with

cogeneration installations. An owner or

designer wants to capture too much of the

fuel energy, resulting in a contraption that is

impossible to run. Too many heat exchangers

and too many interfering control loops make

the system easily exceed its limits. Control

instability and frequent trips will occur, while

parts of the system can overheat, resulting

in permanent damage to the equipment.

Moreover, reaching 91% fuel effciency

instead of, say, 89% can require large

additional capital investments that will never

be economic. A simpler installation is often

preferable over a complicated one.

Decision-makers often neglect or ignore

the law of diminishing returns. An example

is the issue of natural gas security of

supply. In 2007, the European Commissions

Directorate-General for Energy and Transport

invited standards organisation CEN to draw

up standards for high-calorifc gas (H-gas).

The aim was to create the widest possible

standards, albeit within reasonable costs.

Wide standards were supposed

to allow the accommodation of

natural gas from a wide range

of sources, thus facilitating easy

imports and trans-border trade

between Member States. The new

standard would be based on the work

of trade body EASEE-gas, which represents

the whole gas chain and consists primarily

of members of the production, transport and

retail sectors. EASEE-gas proposed a very

wide gas quality range with a Wobbe Index

between 46.44 MJ/m3 and 54 MJ/m3. This

range would especially serve gas traders

and transporters since practically all H-gases

on the market would ft into the standard.

An initial study by GL Noble Denton

showed that the cost of gas adaptation

and renewal to accommodate such a

wide Wobbe Index range would exceed

178 billion. The avoided costs of treating

imported gases to ft a narrower standard

would be factors lower, and gas-fuelled

equipment would suffer from lower

performance and higher emissions. The gas

sector, however, refused to accept these

fndings.

Fortunately, the EC offered the opportunity

to comment on the draft standard, and

in July 2014 some 150 experts from gas

companies and equipment manufacturers

assembled in Brussels to discuss the draft.

Again fortunately, the prime mover

sector for cogeneration and on-site power

production had properly prepared itself. We

could show that the current Wobbe Index

range for H-gas never exceeded 4 MJ/m3

in any EU Member State. That is roughly the

same range as that applied in the US, and

is almost a factor of two lower than the

range proposed by EASEE-gas. We could

also explain that for too wide a Wobbe Index

range, the marginal negative effects for gas

users would largely exceed the marginal

benefts for gas companies.

The meetings major conclusions were

that a narrower Wobbe Index range than that

proposed by EASEE-gas/CEN is necessary

and that rapid variations in Wobbe Index

have to be avoided. Hopefully, the fnal

standard will be acceptable by our sector.

And hopefully the rest of the world will learn

from this and not accept too wide a natural

gas quality range. One must always take into

account the law of diminishing returns.

Dr Jacob Klimstra

Managing Editor

P.S. Dont forget to visit www.cospp.com to

see regular news updates, the current issue

of the magazine in full, and an archive of

articles from previous issues. Its the same

website address to sign-up for our fortnightly

e-newsletter too.

1409cospp_4 4 9/8/14 2:23 PM

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Insight

Environmental protection begins locally

Will the US Environmental

Protection Agencys

(EPA) proposed and

groundbreaking new rule

for reducing greenhouse gas emissions from

existing power stations result in the expanded

use of CHP? Possibly, and the US CHP and

district energy industries are talking up the new

measures, but theres a long way to go before

we really know the answer.

The Clean Energy Plan was made

possible by the EPA defning carbon dioxide

as a pollutant, and therefore subject to

its attentions, back in 2009. The initiative is

aimed to reduce carbon emissions in the US

power sector by 30% by 2030.

Once fnalised next summer, the new

rule will require individual states to use any

of a variety of prescribed methods to meet

exacting carbon dioxide emission targets

from their large-scale power plants by 2020.

The main method relevant to CHP is to

improve the confusingly-named heat rate of

a power plant the amount of fuel needed

to produce a unit of useful energy output

operating effciency, in other words.

The obvious way to do this is to make use

of at least some of the currently discarded

heat, by capturing it and directing the energy

to meet local heat loads. In other words, the

conversion of suitably-located power stations

to CHP/district heating plants.

With purpose and determination, this

sort of thing can be done. The president of

the International District Energy Association

(IDEA), Robert Thornton, cites the case of a

district energy system in Boston-Cambridge,

Massachusetts, where a waste-to-energy

station was recently reconfgured by operator

Veolia to direct previously discarded heat

into the district heating system. Across the

pond, the SELCHP plant in South East London,

UK, was converted recently from a waste-to-

electricity plant to one that also distributes

heat, more than 20 years after it was built.

Clearly the location of such a plant close to

heat loads, whether for homes and buildings

or industrial processes is crucial.

Improving generation effciency thats

the key, particularly in a country where the

power industry boasts an average effciency

of just over 32% and discards more heat

than is used by its buildings and industries

together.

What about bottom-up alternatives

to converted large-scale power stations?

Municipal district energy schemes and those

serving large educational campuses are an

important part of the US local energy scene.

Smaller still, corporate America is starting to

turn to on-site renewable energy plants.

Apple, BMW Manufacturing, SC Johnson,

Volkswagens Chattanooga operations and

Adobe systems all use their own on-site

renewable plants to generate a signifcant

proportion of their electricity needs,

according to a list published in July by the

EPA. Biogas and solar photovoltaics (PV) are

the main technologies used.

Biogas produced at landfll and

wastewater treatment plants is available to

many local councils, solar panels can be

installed almost anywhere and wind energy

helps several large farms to generate at

least some of their own power. Yolo County

in northern California generates over

150% of its needs, mainly from ground-

mounted PV power installations, exporting

the excess to the grid.

New rules from the EPA may eventually start

to improve the operating effciency of some

existing large-scale power stations in the

US, but there are many more opportunities

for high-effciency energy generation at a

smaller and more local scale.

Steve Hodgson

Contributing Editor

1409cospp_6 6 9/8/14 2:23 PM

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Comment

Smart cities for India - can government deliver?

During a recent trip to

India, as my hotel lights

fickered on and off

throughout the day

and night, I was struck by the

immense challenge of bringing

clean and reliable power to

a country where hundreds of

millions of people lack access to

electricity and more people have

mobile phones than a toilet inside

their home. With just under 1.3

billion people, India is predicted

to overtake China within the next

15 years as the worlds largest

population. However, in stark

contrast, almost all of Chinas

population has access to power.

Part of the purpose of the trip

was to speak at a recent meeting

on Smart Cities for India, as the

new government is making a

push to promote this concept and

build 100 smart cities, bringing

modern technology to the urban

environment in multiple sectors,

including energy.

Decentralised energy and the

smart city concept are perfect

complements, as greater use of

decentralised energy within an

urban environment will make

the power delivery system more

robust, reliable and smarter.

With predictions of over 30 cities of

greater than 10 million residents

by 2025, the transformation to a

smarter city needs to happen

rapidly.

WADE recently worked with the

International Energy Agency (IEA)

on an update to the combined

heat and power/district heating

and cooling scorecard for

India. As discussed in the report,

primary energy demand in India

has more than doubled in the

past two decades and India is

now the third largest consumer

of energy in the world. A net

importer of fossil fuels, the power

sector is very much a coal-based

industry, with coal representing

around 60% of installed capacity.

India has not met its targets for

additions to generating capacity

and now faces a defcit of

almost 10% which explains the

fickering hotel lights.

With respect to combined heat

and power, India is reported to

have 3 GW of installed capacity,

with 2.3 GW being bagasse-

based as India is the second

largest producer of sugar cane

in the world. District cooling is far

less prevalent, although there are

some projects underway.

The report does an excellent

job of identifying a number of

the existing barriers to greater

deployment and policies

that can be implemented to

encourage adoption of CHP/

DHC technologies. What might

be most useful, though, is if the

current government understands

that decentralised energy is a

smart way to go and includes it

as a central part of the push to

promote smart cities.

While touring some of

Indias historical sites I saw how

buildings from hundreds of years

ago were cooled with the district

cooling technology of the day

gravity-fed water circulating

behind the room walls. I also had

a chance to visit a WADE member

company, Thermax, which has

just released a highly effcient

triple-effect absorption cooler

that is being used at its factory

in a district cooling application

fred by renewable biomass.

India was once a leader in

smart city design, but it will take

much more than talk to deliver

the promise of smart cities for

the future it will take concerted

action and investment by the

public and private sectors to

make this dream a reality.

David Sweet

Executive Director,

World Alliance for

Decentralized Energy

[email protected]

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10

Country focus: Turkey

Cogeneration & OnSite Power Production | September - October 2014 www.cospp.com

The cogeneration

market in Turkey

is in fux. Overall

combined heat

and power (CHP) capacity

has dropped over the past

decade from 15% of total

energy capacity in 2004 to

14% in 2013, primarily due

to high oil and gas prices

in the wake of market

liberalisation that made

CHP less cost-effective. CHP

production has marginally

increased recently, with

200 MW added over the

past six months, reaching

8500 MW as of August 2014,

and a further 200250 MW

is to be added over the

next year. However, recent

legislation, in addition to

delays in implementing

other energy-related laws,

has made CHP less attractive

in the market. Furthermore,

regional geopolitical issues

The Turkish CHP sector faces tough times, but could rebound if the right energy

policy is put in place and stability in neighbouring countries can be secured,

writes Paul Cochrane.

A light at the end of the tunnel

Despite large installations like the Atatrk Dam in southeastern Turkey, the nation still imports 72% of its power and private electricity generation has surged to 61% as of 2013 Credit: Emma Jackson

1409cospp_10 10 9/8/14 2:23 PM

11


www.cospp.com Cogeneration & OnSite Power Production | September - October 2014

are presenting Turkey with

serious energy challenges

to meet and secure rising

demand across the board.

A hard-hit sector

Cogeneration capacity took

off in Turkey from 1992, and

trebled since the turn of the

century to reach 6400 MW

in 2009, bolstered by 80 cities

being supplied with gas. Yet, in

the past fve years, Turkish CHP

output has only increased by

2000 MW. The drop was due to

the spike in energy prices, to

which Turkey is heavily exposed

with an import dependency of

72%, according to the energy

ministry. Indeed, natural gas

imports account for some 43%

of total electricity production.

By 2012, the government,

due to a limited amount of

gas [earmarked] for power

generation, could not afford

to promote natural gas power

plants and imposed tax

on imported cogeneration

[feedstock], which is why the

market disappeared and there

was a greater focus on local

fuels, coal and hydro, until gas

is more readily available, says

Christer Strandvall, western

Europe regional director

of Finlands Wrtsil, which

operates in Turkey.

The governments decision

to lower its gas import bills,

which were causing a large

defcit in the states coffers, hit

the CHP sector particularly

hard, providing incentives for

domestic energy producers

and reversing former

incentives to operate gas-fring

combined cycle plants.

New CHP investments

are also suffering from the

cancellation of the former

incentives: custom duty

exemption; income tax

exemption for 10 years; and

tax reduction from the total

investments cost, says Ozkan

Agis, chairman of the Turkish

Cogen and Clean Energy

Technologies Association

(TURKOTED). We are putting

pressure on the authorities

to reactivate the incentives

but the necessary legal

procedures are running very

slow, he adds.

Such legislative issues

have reduced support and

investment in CHP step by

step, says Dr Fiona Riddoch,

managing director of Belgium-

based industry association

COGEN Europe. CHP has not

made ground as expected.

It shows the complexities of

[rolling out] CHP, which doesnt

exist with pure power delivery,

as delivering heat and power

brings an extra dimension to

CHP, which requires a good

policy environment through

the ups and downs, she adds.

As a result of Ankaras

policies, certain heavy oil-fring

CHP facilities have been

dismantled, and demand has

slowed for CHP projects, which

had primarily been targeted

at industrial consumers the

biggest demand in 2013, for

instance, was in the textile

sector, at 56%, followed by

paper (14%), ceramics (13%),

food (9%) and wood (8%),

according to TURKOTED.

With industrial CHP having

reached saturation, newer

projects have focused on

hospitals, shopping malls,

university campuses and

mass housing projects, said

TURKOTED. However, recent

legislation has curbed CHPs

attractiveness. This is refected

in state housing operator

TOKI, which is building 100,000

new apartments nationwide

and opting for conventional

heating systems rather than

CHP. TOKI is afraid of the time

impact of new CHP integration

as it thinks new CHP systems

will cause delays to the overall

construction programme

of mass housing projects,

explains Agis.

The failure to implement

the Natural Gas Market Law

(No 4646), adopted in 2001,

is also hindering market

development. It was supposed

to open up the sector and

stipulated that state-owned

gas frm BOTAS market control

currently 85% was to be

reduced to 20% by 2009. The

gas market is not free, being

under the control of BOTAS;

but on the other hand, the

electricity market is free, so

this unfair situation is creating

uncertainties for new CHP

investments, Agis says.

Indeed, electricity

generation by the private

sector has surged from 38%

a decade ago to 61% as of

2013, according to the energy

ministry, while just 15% of the

gas sector is in private hands.

With BOTAS monopolising the

market by dictating wholesale

and retail prices, the price

surged by 260% in the six

years between 2004 and 2013,

according to TURKOTED.

Barriers and delays

Bureaucratic delays have

equally hindered greater

liberalisation. For instance,

Ankara had revised a

2001 Electricity Market Law

(No 6446) that came into effect

in March 2013, and passed a

new Petroleum Law (No 6491)

in May 2013. In addition, a

new regulator that was also to

provide a gas reference price,

the Energy Markets Operating

Corporation (EPIAS), was

slated to start operating in

September 2013, but has yet to

be established as of mid-2014,

and is not expected to be

operational until 2015.

Under the electricity law,

producers were exempted

from having to get production

licences from the Energy

Market Regulatory Authority

(EMRA) as of October 2013.

However, cogeneration

facilities are only exempt if they

have a high-cycle effciency,

which the energy ministry has

yet to establish.

TURKOTED has proposed

a draft in line with the EUs

Energy Effciency Directive

(EED), but Turkeys existing

lowest cogeneration effciency

level is considered high at

80%. We have tried to set-up

1409cospp_11 11 9/8/14 2:23 PM

12



a new regulation clarifying the

methodology of calculation of

cycle effciency, and are happy

to say that our efforts have

(recently) born fruit and a new

regulation, which is designed

in line with the European

cogeneration directive, is to be

issued by the energy ministry,

confrms Agis.

While that barrier is on its

way to being removed, another

barrier to CHP investment

is that the Turkish Electricity

Distribution Company

(TEDAS) and the state-run

Turkish Electricity Trading

and Contracting Company

(TETAS) are not required to

buy surplus electricity from

CHP facilities. Although CHP

producers can sell to the free

electricity market, connecting

to the local grid is not always

simple. To get the CHP sector

back on track and account for

greater capacity production,

TURKOTED is putting pressure

on the government to pass a

new Gas Market Law, which is

expected to be enacted later

this year.

Turkey is not alone in

struggling with rising gas

prices, to the detriment

of investment in CHP. This

is refected in the slide in

overall CHP capacity. Such a

drop means the underlying

economic fundamentals are

not right - that it is a market

failure. In the EU, cogeneration

is also suffering right now

as theres too much cheap

coal on the market, and too

much surplus capacity from

renewables, which is not

helpful unless it comes when

energy is required. Gas CHPs

economic problems today are

an issue of policymakers, warns

Paul Voss, managing director

of Brussels-based Euroheat

& Power, the international

association representing the

district heating and cooling

and CHP sector.

Turkey is considered ripe

for expanding CHP to meet

growing energy needs while

improving effciency in line with

the EED as part of the countrys

long-term aim of joining the EU.

The market fundamentals

are also there, with a large

population of 77 million, some

80 cities connected to the

gas grid, and a government

goal of becoming the worlds

tenth largest economy within

the next decade up from the

current number 17 by gross

domestic product (GDP).

The EU is increasingly

recognising CHP and

district heating as part of a

broader energy transition to

a low-carbon economy, and

that is no less true for Turkey

than elsewhere. Many of the

pre-conditions for district

heating are there, with a young

and urbanising population,

which is a good start, and

the concentration of energy

needs in cities certainly suits

the development of district

heating, explains Voss.

A changing energy mix

In the marketplace, Voss

continues, a big winner for

district heating and cogen

is probably geothermal

energy, as there appear to

be signifcant geothermal

resources in the country, with

some 20 geothermal networks

under review and planned.

It is early days, however, for

geothermal CHP, which has

been established in the cities

of Izmir, Afyon, and Aydn, but

its total capacity does not

exceed 50 MW, according to

TURKOTED.

While geothermal

power could provide up to

524.95 MW in Turkey once

operational, the country is

actively diversifying its energy

mix through power generation

via domestically sourced

lignite, asphalite, biogas

and biomass. It is aiming to

increase imports of liquefed

natural gas (LNG), with current

imports coming from Nigeria

and Algeria, and it is in talks

with the worlds top supplier,

Qatar. Turkey, like other EU

countries, is looking into LNG

terminals, with four ports under

consideration, says Strandvall.

Ankara aims to have 30%

of energy from renewables by

2030, but questions are being

raised about whether this will

be achieved. Investment so far

has focused on wind power

and hydroelectric power

plants (HPPs), and to a much

lesser extent solar (primarily

small-scale installations

such as solar-powered water

boilers). As in many other

countries, there is local

resistance to expanding wind

turbines and HPP. Local people

are against these [HPPs],

claiming that they are killing

the environmental habitat

and their income sources.

On the other hand, wind

power investments are mostly

concentrated in western Turkey

instead of [less populated

and economically developed]

eastern Turkey, says Dr Tuge

Varol of Uskudar University

in Istanbul and head of the

energy security department at

the 21 Century Turkey Institute.

In addition to renewables,

Ankara has signed contracts

to build two nuclear power

plants, yet gas-fred electricity

generation is slated to be the

mainstay of energy production,

with BOTAS forecasting gas

demand to almost double

from 45 billion cubic metres

(bcm) in 2012 to 81 bcm by

2030.

Sourcing such gas,

including for the CHP sector, will

be crucial, although analysts

are not overly optimistic given

Distributed energy is spreading in Turkey even to rural communities such as this in Cappadocia, central Anatolia Credit: Emma Jackson

Building the Arab Gas Pipeline linking Turkey and Syria a key link that is now blocked because of the civil war in Syria. Credit: Euro-Arab Mashreq Gas Co-operation Center (EAMGCC)

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14



the current instability in nearly

all of Turkeys neighbours. This is

warding off development and

the rollout of gas pipelines, with

Turkey a crucial crossroads,

criss-crossed by pipelines

and more planned that are

essential to supply the country

and further afeld.

Turkey has not signed the

required gas contracts for

2030. There is a high-volume

contract with Turkmenistan;

however, bringing gas from

there is unrealistic at the

moment. The only realistic

additional gas contract is with

the Trans Anatolian Natural

Gas Pipeline (TANAP) project

for 6 bcm but, compared

to Turkeys economic growth,

that amount is not suffcient

for the near future, warns Varol.

Meanwhile, the Nabucco

pipeline, which had been

slated to provide 10 bcm and

run from central Asia to Austria,

has essentially been shelved

due to its high projected costs.

It is a race, of course,

Strandvall explains. Nabucco

is too massive and has too

many questions still to be

resolved, but TANAP is at a more

advanced stage, so Nabucco

is very far away and politically

driven. It is a geopolitical issue.

Geopolitical risk

Meanwhile, new geopolitical

risks that have emerged on

the nations eastern and

southern borders also pose

problems for Ankara. The Arab

Gas Pipeline, which ran from

Egypt to Syria and was in the

fnal stage to Turkey, has shut

down due to the confict in

Syria, while the rise of extremist

group the Islamic State (IS)

is jeopardising oil and gas

exports to Turkey.

It is not only Iraq and Syria,

but also the Ukraine-Russia and

Azerbaijan-Armenia crises that

might affect Turkeys current

and future natural gas security

supply projects. As a result of

the Ukraine crisis, the pipeline

that carries Russian gas to

Europe and Turkey through

Ukrainian territory might be cut

by both sides of the confict at

any time, warns Varol.

To anticipate such an

eventuality, Turkey signed a

new contract with Russias

Gazprom for an additional

3 bcm of gas from the

sub-Black Sea Blue Stream

pipeline, starting from this

year. Turkey currently imports

14 bcm per year of Russian

gas via Ukraine (out of Turkeys

total 52 bcm per year of gas

imports), according to energy

information provider Platts.

The ongoing and

unresolved crisis between

Azerbaijan and Armenia

is a further issue. It is the

worst scenario for the TANAP

project, as any further military

confict between Armenia and

Azerbaijan may postpone

construction and directly

affect the energy security of

Turkey. On the other hand,

such a crisis in the Southern

Caucasus would trigger the

implementation of the South

Stream project linking Russia

with eastern Europe under the

Black Sea, predicts Varol.

Nuclear power plant (NPP)

projects also face geopolitical

what-ifs, which may push

Ankara to diversify energy in

other ways, especially as the

plants will not be operational

for another decade. One of

the planned plants, in Akkuyu,

is to be constructed by Russias

Rosatom. If the tensions grow

further between Russia and

the west, the west may knock

on Turkeys door and remind

them that Ankara is a NATO

member and should suspend

its NPP with Russia, says Varol

which, as Russias direct

military involvement in Ukraine

has become clearer, looks

increasingly likely.

The plant is also near

the Syrian border. Syria is

extremely unstable and there

are a lot of al-Qaeda type

terrorist organisations actively

operating in the region, so

there is the possibility that any

terror attack (in the area) may

suspend the NPP project, she

adds.

Light at the end of the

tunnel

Yet, while geopolitical issues

may throw a spanner in the

works for sourcing gas, a

new energy policy is possible

following elections. A general

election is due in June 2015,

following this years presidential

election, which has seen

former prime minister Recep

Tayyip Erdogan become

head of state. Indeed, the

recent uptick in CHP capacity

and TURKOTED pushing the

government on CHP effciency

levels signal that while Turkey is

struggling to get its policy right,

CHP will remain a part of the

countrys energy mix.

There is light at the end of

the tunnel...Turkey is following

what is happening in Europe,

and I do see a continuation

on CHP in the future, says

Strandvall. They will follow

the implementation of the

EED within the EU and most

probably follow or implement

part of the directives in the

Turkish market in due course.

He adds that, in my

opinion, CHP is part of the

whole package, but plants

producing electricity are also

needed because there are

still areas that lack power,

and areas where the grid is

weak and daily frequency/

voltage fuctuation is causing

problems. Also, there is demand

for fexible power plants which

can operate in a peaking or

balancing mode, enabling

renewable energy systems

like wind and solar to be

integrated in the power system.

On the other hand, theres

still a lot of industrialisation

with their own cogeneration

needs, he concludes.

Paul Cochrane is a journalist

focusing on energy matters.

This article is available

on-line.

Please visit www.cospp.com

Energy policy in Turkey could change now that Recep Tayipp Erdogan has been elected president. Credit: World Economic Forum

Taner Yoldiz, Turkeys minister of energy and natural resources. Credit: World Economic Forum

1409cospp_14 14 9/8/14 2:23 PM

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16



Turkeys cogeneration

and trigeneration

sector is

characterised by

relatively small projects.

The sector is dominated by

reciprocating engines which

generally display a higher

effciency at lower power

ratings than the alternative

gas turbine setup.

As Abdulhalik Emre Teksan,

Energy Systems Engineer at

Teksan Jenerator, explains:

Most of the projects are with

gas engines in Turkey because

typically the needed output is

below 10 MW and the desired

effciency is over 40%, so this

means mostly gas engines

areselected.

He points out that most CHP

applications in the country

have requirements of between

1 MW and 3 MW, adding: In

Turkey, due to the prices of

natural gas and electricity,

a certain rate of effciency is

needed to be able to generate

electricity a little bit cheaper

[than grid prices]. Because of

that, an effciency of at least

40% is desired and in most of

the small-scale gas turbines

the effciency is a little lower so

this is why in the Turkish market

gas engines are dominant.

That is not to say that there

are no gas turbine-based

projects operating in the

country for larger and more

suitable projects. For example,

in January 2012, Bis Enerji

selected GEs aeroderivative

LM6000-PC Sprint technology

for a 48 MW cogeneration

project for Bis Enerji Elektrik

Uretim AS. The project

expanded the capacity of a

merchant power plant located

in Bursa, increasing the

cogeneration plants installed

capacity from 410 MW to

495 MW. Commercial

operations began in August

2012.

Nonetheless, for the majority

of projects, gas engines

from major OEMs such as

GE Jenbacher, MWM and

Wrtsil dominate the market,

typically through a Turkish

partnerorganisation.

Dominated by international OEMs, Turkeys cogeneration and trigeneration sector

still offers a wealth of opportunities for developers. Indeed, the market is perceived

so positively that new market entrants are emerging, David Appleyard reports.

Turkeysopportunity market

Hospitals offer signifcant potential for CHP systemsCredit: Arke Energy Systems

1409cospp_16 16 9/8/14 2:23 PM

17



Among the applications

using cogeneration systems,

landfll gas has proven to be

very popular. For example,

from 20062010 GE Jenbacher

received orders for more than

50 units with a total capacity of

over 70 MW for landfll gas-fred

units supplied through Topkap

Endstri Mallar, founded in

1985. By way of illustration, in

April 2009 a landfll gas-to-

energy project, owned by

Ortadogu Enerji, was formally

unveiled in Istanbul. Located at

two landfll sites in Istanbul and

powered by a total of 23 of

GEs Jenbacher gas engines,

the fnal units were delivered

in2010.

With a total waste disposal

volume of 47 million tonnes

and a daily disposal rate of

about 14,000 tonnes, the two

landflls are among the largest

in the world. This 35 MW landfll

gas project was developed

as part of a national initiative

to reduce the environmental

impacts of solid waste facilities.

As Teksan observes: Actually,

biogas is getting more and

more popular. Before 2000 it

was a little slower, but after that

the government started to give

some bonuses for this kind of

application and these types of

gas engines fuelled by biogas

are becoming more and

more popular, as are certain

types of projects such landfll,

sewage treatment and animal

wastes.

However, he notes that most

landfll sites in the country

already feature these types

of installations. Three or four

years before, it was a little

bit more attractive for the

landfll biogas application,

but most of these applications

aredone, he says.

Nonetheless, other

cogeneration applications

using GE Jenbacher engines

include a 13.4 MW installation

at the Koruma Klor factory

in Derince which produces

chlorine-based products.

Other examples include a

project for Usak Seramik, the

frst gas engine application in

the ceramics sector in Turkey.

Czech engine manufacturer

Tedom develops CHP projects

in Turkey in partnership with

Arke Enerji. Tedoms 2013

annual report reveals growth

in CHP systems of more than

30% compared with 2012

fgures. According to the

company, this growth resulted

from the completion of biogas

plant projects, mostly as a

consequence of legislative

amendments.

Arke Energy Systems

delivers cogeneration and

trigeneration systems to

industrial facilities, hotels,

hospitals, education facilities,

business centres, shopping

malls, sport centres, apartment

buildings, wastewater

treatment plants, agricultural

farms and landfll projects.

Its cogeneration units are

supplied in an output range of

5-2000 kWe.

Ozay Kas, a mechanical

engineer with Arke

Energy Systems, explains:

Cogeneration and

trigeneration projects have

been developed, based on

the regulations by Energy

Ministry and Energy Market

Regulatory Authority (EMRA),

for 20 years. But until 2010,

all CHP facilities had to get

a licence from EMRA, a rule

which proved to be a major

obstacle to establishing CHP

systems.

However, according to a

2010 EMRA regulation, some

organisations had the right

to construct cogeneration

systems without a licence if a

project is required to meet self-

consumption demand.

By 2010, industrial facilities

that had pioneered CHP

systems in Turkey had reached

a certain maturity, having

installed some 7000 MWe, says

Kas. However, service facilities

such as hospitals, hotels,

shopping malls, universities

and public buildings have

been shining for fve years,

he notes, adding, When we

consider that there are 1500

hospitals, thousands of hotels

and hundreds of shopping

malls and universities in Turkey,

it is clear that there is huge

potential for CHP systems.

Indeed, Teksan cites a new

law under which every hospital

with more than 200 beds

is now required to install a

cogeneration or trigeneration

system. Teksan recently sold

such a cogeneration system,

consisting of fve 1100 KVA

diesel generators and a steam

output of 400 kWth. He says:

We think that with projects like

this there will be a very good

opportunity for cogeneration

manufacturing in Turkey.

According to Kas, average

electricity consumption at

state hospitals is 120 kWh/m2

a year, at university hospitals it

is 160 kWh/m2 a year, while at

private hospitals consumption

is some 310 kWh/m2 a year.

Given these fgures, total

annual electrical energy

consumption is around

1850 GWh in state hospitals,

710 GWh in university hospitals,

and 1250 GWh in private

hospitals. In total, hospitals

account for 3810 GWh

annually, or 1.52% of Turkeys

total electricity consumption.

Similarly, hospital heat

energy consumption averages

200350 kWh/m2 a year,

depending on the climatic

conditions of the region.

The total annual heating

energy needs of hospitals

is approximately 6600 GWh,

giving a total gas consumption

of 765 million m3 per year. Thus,

hospital-based cogeneration

systems can make a signifcant

contribution to Turkish energy

security.

Other applications

Major OEMs operating in Turkey

include Wrtsil, which in 2004

was awarded a contract for

an 84.8 MWe replacement

and extension of an existing

diesel power plant at Manisa

in western Turkey.

In 1999, Wrtsil supplied

a 54.3 MW baseload plant

to Manisa with three of its

18V46 diesel generating sets.

It met the heat and electricity

demand of Manisa Organised

Industrial District (MOSB) which

houses some 115 companies

from a range of industries.

Under the additional

contract, the existing diesel

generating sets were replaced

by three Wrtsil sets, each

wtih an electrical output of

16,638 kWe. The total steam

production capacity is around

40 tonnes/hour at a pressure

of 14 bar. Hot water is fed into

the district heating system of

the industrial park.

Most Turkish CHP systems are between 1 MW and 3 MW Credit: Arke Energy Systems

1409cospp_17 17 9/8/14 2:23 PM

18



More recently, in December

2009 Wrtsil supplied

equipment for the Naksan

power plant project in

Gaziantep, located close to

the Syrian border.

Developed by Naksan

Plastik, which uses the plants

electricity and heat for its own

manufacturing processes,

any surplus electricity is sold

to the national grid. Wrtsil

supplied two gas engines

with a combined output of

approximately 18 MW.

In 2011, Wrtsil supplied

equipment for another

textile company, H G Enerji

Elektrik retimi, for a power

plant project in Gediz, in the

province of Ktahya in the

Aegean region of thecountry.

Meanwhile, Turkish frm

Iltekno partners with MWM

(now operating as Caterpillar

Energy Solutions GmbH) and

MAN Diesel, and in June 2014

implemented the installation of

a 1.6 MW cogeneration plant

for Frat University, Ilteknos third

such university CHP installation.

In October last year,

operations began at a

1.2 MW installation at a landfll

gas project in Malatya in the

East Anatolian region using a

MWM engine.

Osman Nuri Vard,

CEO of operator Dogu

Star, commented at

the time: Although this

investment project, involving

installed power output of

1.2 MWe, is rather small, it is in

fact of great signifcance to

our country, our region and

Malatya.

He added: Each year,

Turkeys energy imports reach

just under US$60 billion. There

are plans of further reduction

of this fnancial burden in the

future. In fact, whereas the level

of natural gas imports was

approximately 55% of all power

generation fve to ten years

ago, that fgure has already

dropped to some 44%.

Thanks to Turkeys current

investment programme for

expanding power generation

from domestic and renewable

resources, construction is

underway on CHP plants with

a total capacity of 100 MWe,

he added. Projects like the

one in Malatya are being

planned in all Turkish cities

and are to be completed

as soon as possible. Today,

the percentage of electricity

produced with landfll gas

is 1.3% of overall power

generation in Turkey.

A new market entrant

As noted, until recently the

Turkish cogeneration market

has been dominated by

international OEMs, as

Teksan notes: Most of

the projects were actually

done by companies like GE

Jenbacher or Caterpillar, who

entered the Turkish market.

All of the packages were

completely imported from,

lets say, Germany or the USA,

and because of that the

installations investment prices

were quite high. This was

affecting the market a little bit,

scaring people off.

However, we are trying to

decrease that [cost] with local

manufacturing and we are

trying to make cogeneration a

little bit more attractive.

Thus, building on its history as

a diesel engine manufacturer

and diesel genset packager,

two years ago the company

launched a proprietary gas

engine product. Indeed,

Teksan fnalised two projects

in Turkey last year, one a

trigeneration development

and the other a biogas-fred

cogeneration installation.

Teksan explains: Right

now we are focused on

cogeneration because we

think that in the upcoming

years it will be quite a rising star

in the Turkish market because

with the high-effciency engines

the return on investment time is

quite good in Turkey, between

two and three and half years.

I believe that in the

coming years it will be very,

very important, he continues.

The government is aware

so it is making new laws to

increase the effciency of new

buildings, and is giving some

subsidies because of local

manufacturing for biogas

cogeneration applications. We

think that local manufacturing

will be quite important.

He adds that while with such

positive market fundamentals

new entrants to the market are

to be expected, he considers

this will be a slow process.

We expect incomers to the

market but right now were the

only local manufacturer for

cogeneration systems, he says.

And Teksan points out that

there are still considerable

opportunities: Smaller-scale

biogas applications from

animal waste [slurry] we think

will be quite attractive for the

coming years. He anticipates

these projects to have a

typical capacity below 500 kW.

Concluding, Teksan

observes: We believe the

cogeneration market in Turkey

is just in the beginning process.

Even though there are projects

which are, say, 15 years old, I

dont believe the cogeneration

market is saturated.

Small-scale biogas

trigeneration and

cogeneration systems will be

a very, very important issue in

Turkey in the coming years.

There will be, I believe, lots of

new installations.

David Appleyard is a

journalist focusing on energy

matters.


on-line.


A typical hospitals seasonal heat demand and production

A typical hospitals daily electricy consumption and production

1409cospp_18 18 9/8/14 2:23 PM


1409cospp_19 19 9/8/14 2:23 PM

20

Heat pumps


Energy policy in Europe has been dominated by matters electric for a very long

time; even cogeneration tends to be measured by its electrical output. But heat

pumps are emerging as one of the key low-carbon technologies to lower the

carbon content of heat rather than power supplies, writes Steve Hodgson

Hotting up for heat pumps

Heat pumps appear to be set for a period of considerable growth Credit: Mitsubishi

1409cospp_20 20 9/8/14 2:23 PM

21

Heat pumps


Heat pumps

represent one of

the most important

t e c h n o l o g i e s

targeted to achieve Europes

transition from a heating

market based on fossil fuels

(mainly natural gas-fred

boilers) to one based on

lower-carbon alternatives.

Other technologies and fuels

likely to contribute are solar

thermal, CHP/cogeneration,

biomass/biogases, district

heating (at least partly

fuelled by municipal waste,

biomass and/or biogases)

and, counter-intuitively,

direct electric heating. The

last option is included as

policy moves to decarbonise

electricity generation will

eventually yield low-carbon

electricity.

Heat pumps come in

several different types,

according to the heat source

used and how it is distributed

within the home or building.

Air-to-water heat pumps, i.e.,

those that source heat from

outside air and use it to heat

water inside the building, are

the most numerous in new

installations in most of Europe,

with air-to-air systems second.

As well as for heating, air-to-air

systems are commonly used in

Italy, Spain and other parts of

southern Europe to provide air

conditioning.

Sweden is unusual in having

a mature market dominated

by ground source heat pumps.

Sweden started to expand its

use of the technology in the

1970s, when the oil price shock

and a lack of access to natural

gas caused the government

to promote heat pumps.

Sales of heat pumps of all

types are dominated by the

domestic sector, although

sales for commercial buildings

are increasing.

Heat has emerged onto

energy policy agendas in the

last few years as politicians

have realised not only the

huge contribution that

energy used for heat makes

to CO2 emissions, but also

the inevitable connections

between electricity and heat

use. Regular readers of COSPP

have no problem seeing the

connection between heat

and power, particularly when

both are supplied locally by

CHP systems, but legal and

regulatory frameworks for

the two energy forms have

previously been very separate.

Buildings, where heat

pumps are usually employed,

are responsible for more than

40% of energy use and a third

of greenhouse gas emissions

worldwide, according to

the European Heat Pump

Association (EHPA). So the

scope for carbon savings is

enormous. In the UK, almost half

of the total energy consumed

is for heating, rising to over

three-quarters of non-transport

energy use. Although that

includes heat used for cooking

and manufacturing goods,

the majority is used to heat

buildings and hot water, and

to keep homes and offces

cool in hot weather all areas

where heat pumps could play

a part.

In Europe, led by the UK

with the worlds frst long-term

fnancial support programme

for renewable heat the

Renewable Heat Incentive

(RHI) several countries and

the EU itself are encouraging

the growth of renewable

and low-carbon alternatives

to fossil fuel-based heating

systems. The increased use

of heat pumps is also being

encouraged by programmes

to make buildings more energy

effcient from basic building

regulations to ambitious plans

to require low or zero-carbon

buildings in the future. As

governments across Europe

progressively reduce the

allowable heating energy use

per unit of foor area in homes

and buildings, heat pumps

become more attractive.

The European market

So what is the state of Europes

heat pump market? Its health is

connected, to an extent, to that

of housing and commercial

building construction, which

has still to emerge from

recession. But heat pumps

have begun to recover anyway

2013 saw the frst return to

modest growth since 2008,

and the EHPA expects higher

growth this year. Some 770,000

heat pumps were sold in EU

countries during 2013, a rise of

3% on 2012 fgures, according

to data released by the EHPA

in July. This translates to a heat

generating capacity of 24 GW

added during theyear.

The size of national

heat pump markets varies

considerably, and the overall

picture depends largely on

movement in the biggest

markets, particularly Sweden

and France, says the EHPA.

Sales were up in 15 of the

21 countries surveyed, and

negative trends in 2012 for

four countries (Portugal, Spain,

Sweden and Finland) were

reversed into growth last year.

After France and Sweden, the

largest markets are Germany,

Italy, Norway andFinland.

The 2013 sales fgure is

approaching double that of

a decade ago, according

to EHPA data. Sales peaked

in 2008 at slightly more than

800,000 units, and have been

fairly steady since. More

than six million heat pumps

of various types have been

installed across the continent,

with a combined generating

capacity of over 200 GW.

Air-to-water and air-to-air

heat pumps dominate

the picture, with ground

source models holding a

distant third place, mainly

due to their popularity in

Scandinaviancountries.

Intervention by national

governments, rather than a

return to construction growth,

A 5 kW air-source heat pump home demonstration project in Gloucestershire, UK Credit: MItsubishi

1409cospp_21 21 9/8/14 2:23 PM

22

Heat pumps


has been instrumental in

restoring health to the heat

pump market over the last year,

says Thomas Nowak, Secretary

General of the Association,

particularly where policy

measures affect the energy

effciency of buildings. For

example, it makes little short-

term economic sense to invest

in a heat pump in Germany

today, says Nowak, yet people

do because of government

encouragement programmes

and a longer-term awareness

of rising fossil energy prices.

High initial investment

costs and short-term decision

horizons both work against

heat pumps, as do high

electricity costs.

At growth rates of 3% per year,

it would take quite some time

to see heat pumps approach

their overall potential in

Europe, which might eventually

reach a presence in 100%

of new buildings and half of

refurbishment projects, says

Nowak. In a fully decarbonised

heat market, biomass could

contribute up to 30% of the total

before a large-scale biomass

import programme became

necessary, he says, leaving

70% of the market to be met

by heat pumps, solar thermal

and other technologies. This

will include contributions

from individual heat pumps

and those used within district

heating systems, plus hybrid

heat pumps in which little gas

is burned during particularly

low exterior temperatures.

This is a very long-term aim,

of course, several decades

ahead, although the mature

heat pump markets of Sweden

and Switzerland already show

the way forward. Progress

will depend on the swift

implementation of existing

legislation throughout Europe,

and continued consistent

support for low-carbon

heating andcooling.

Building refurbishment

projects are more of a

challenge for heat pumps

than new build, as building

fabric and existing heat

distribution systems often

need to be upgraded. Indeed,

attention to minimising heat

losses due to building fabric

details needs to be rigorous,

and the refurbishment of

existing buildings is one area

where hybrid heat pumps

can be useful. With hybrids,

around three quarters of the

total heat supplied comes

from the heat pump, with the

remaining quarter from a small

gas-fuelled boiler installed as

part of the system. Heat pumps

can work effectively even when

external air temperatures

are very low, says Nowak, but

building fabric detailing needs

to be very, very good better,

perhaps to burn a little gas.

Analysis carried out by

Ecofys for the EHPA suggests

that an ambitious heat

pump development scenario

could cut emissions from the

building sector in Europe by

nearly half by 2030. However,

this would require signifcant

intervention into heat markets

by all Member States.

Looking more widely, the

International Energy Agency

(IEA) has calculated that China

could reduce the expected

growth in consumption of

natural gas by half through

the high penetration of heat

pumps for space and water

heating there. The analysis was

presented as part of the IEAs

Energy Technology Perspective

2014, in a scenario in which

energy system reform gave

the world a 50/50 chance of

limiting the average global

temperature increase to 2C.

The same scenario, involving

high penetration of heat

pumps, would cut total EU gas

consumption by 30%.

But, to achieve these fgures,

much more effort is needed

from policymakers, researchers

and industry, said the IEA.

The technology

Although reaching the

potential for heat pumps

in Europe will take time, the

process will be accelerated

as capital costs for units fall,

and this will happen as the

industry responds to gradually

increasing sales. Heat pumps

have been around for a long

time and the basic technology

is relatively mature but thats

not to say that they cannot

be improved. Nowak doesnt

see any fundamental new

ideas on the horizon, but

improvements currently being

made by manufacturers of

heat pump units are:

Capacitymodulatingunits;

Theabilitytoprovidecooling

and heating at the same

time;and

Smartercontrols.

Control is a particularly

important area, both within

units and as part of the

integration of heat pumps

within wider energy systems.

Theres a good deal of

debate in Europe about

energy technologies required

to balance the intermittent

output of renewable electricity

generation, and the EHPAs

Nowak suggests that thermal

storage and heat pumps are

a better solution than others

being mentioned, such as

batteries. Excess electricity

generation can be converted

to heat in a heat pump and

stored, either in an insulated

thermal storage vessel or

within the building fabric itself.

Smarter heat pumps

Smarter controls within and

around heat pumps can only

accelerate their adoption,

Types of heat pumpAir source heat pumpsAir source heat pumps use the ambient energy in outside or exhaust air for heating, cooling and preparation of hot water. They can be installed as compact units entirely inside or outside the house. Heat is commonly distributed inside the house by a hydronic distribution system or by air using fan coils or a ducted ventilation system. Recent technical developments allow for effcient use in almost all climatic regions.

Water source heat pumpsWater source heat pumps use energy stored in ground, surface or sea water. Where ground water is easily available it is accessed by two boreholes. One is used as the water source, the second is used to reinject the water into the ground. The heat pump extracts heat from the water and makes it available for heating, cooling and preparation of hot water, as before. Water source heat pumps proft from particularly high effciency due to the excellent temperature characteristics of water as an energycarrier.

Ground source heat pumpsGround source heat pumps use energy stored in the ground for heating, cooling and preparation of hot water. They extract heat from the ground by either a vertical or horizontal collector. Heat is commonly distributed by a hydronic distribution system or by air. Ground source heat pumps can be operated effciently by employing the consistent temperature level of the ground. Source: EHPA

1409cospp_22 22 9/8/14 2:23 PM

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24

Heat pumps


agrees Lindsay Sugden, who

runs the heat pumps advisory

service at Edinburgh-based

consultancy Delta Energy &

Environment. The intention

with hybrid heat pumps is

to maximise the use of the

heat pump and minimise the

use of the associated small

gas-fuelled boiler. But the

system can be controlled to

optimise costs or emissions,

and hybrid heat pumps

can also be used alongside

thermal storage facilities.

The term smart heat pumps

really refers to the use of

electrically-powered heat

pumps, alongside thermal

storage again, as a demand-

side response to variations

in electricity fows and prices

due to intermittent generation

from renewables. Heat

pump electricity use can be

modulated down, or shut

down, during periods of grid

stress, with operating times

shifted to off-peak periods,

when generated heat is stored.

Stored heat is then called for

use when needed.

Sugden also talks of another

smart use of heat pumps

heat contracting by which

manufacturers supply the heat

pump to a customer at no

capital cost, instead charging

per kWh for its heat output.

Sugden concludes that

utilities have plenty of reasons

to become engaged with

the technology as an add-on

service to gas and electricity

supply, partly because of

the demand management

possibilities. Utilities in the

UK, the Netherlands, France

and Germany are said to

be studying the situation.

UK utilities are increasingly

engaged with heat pumps.

E.ON UK works with social

housing providers on heat

pump installations, while British

Gas is involved in trialling and

development new solutions,

including smart and gas heat

pumps.

Heat into the future

Policymakers and regulators

across Europe have turned their

attention to the contribution

that decarbonising heat

supplies can make to meeting

carbon emission targets,

alongside measures to lower

the carbon-based part of

electricity generation and

supply. Its early days so far, but

it is expected that heat pumps

alongside other low-carbon

heating technologies are set

for a period of considerable

growth.

Steve Hodgson is

Contributing Editor

on COSPP.


on-line.


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Cogeneration & OnSite Power Production | September - October 2014 www.cospp.com26

Case study: plant optimisation

A 68 MW tri-

g e n e r a t i o n

power plant

p r o d u c e s

electricity, heat and chilled

water for the main airport

in Milan, Italy. Part of the

electricity is sold to third

parties through the national

grid, while heat and chilled

water are only used inside

the airport. Most of the

electricity produced is, of

course, used to feed the

energy needs of the airport

and its facilities.

A large airport is an

excellent recipient for the

combined generation of

electricity and heat, as it

guarantees that the supply

will be absorbed with a high

level of continuity, day and

night, all year round. For the

Milan airport in particular,

co-generation is even an

important source of revenue,

as unused electricity is sold to

the market.

The simple cogeneration

One of the problems with managing a power generation plant, in particular

cogeneration, is in identifying wastes and choosing the optimum production

scenario. One solution to this problem is a system in which, through energy

modeling, it is possible to monitor plant energy performance in real time and

optimise the process of power generation, writes Aleksandra Peneva

Milan airportstri-generation profts soar

The main airport in Milan, Italy, increased revenue from power generation by 1.5 million (US$1.97 million) in less than a year

1409cospp_26 26 9/8/14 2:24 PM

www.cospp.com Cogeneration & OnSite Power Production | September - October 2014 27

Case study: plant optimisation

system serving Terminal 1

began operating in October

1998. It had installed power

of 32 MW of thermal capacity

and 20 MW of electrical

capacity. In 2000 followed

an expansion of the thermal

cooling plant in view of an

expected increase in the

airports thermal cooling

load. The project provided

for a 25% capacity increase

in the production of chilled

water, doubling of the heated

water storage capacity, and

expansion of the heated

and chilled water distribution

network. In view of the

expected growth of the airport,

from 20012003, construction

of a new cogeneration plant

(combined-cycle with heat

recovery) began, with an

installed capacity of 30 MWth

and 30 MWe.

At present the plant has a

next-generation transformer

room, the most powerful

absorption refrigeration

system for the production of

chilled water in Europe, and

a roadmap of investments

lined up to increase its

effciency and sustainability.

For example, two gas turbines

were recently replaced with

more effcient ones.

This determination to

reduce waste and increase

the ability to manage all of

the plants systems on an

automated basis led the

company to seek new smart

and sophisticated control

room technologies. Energy

management software was

one of them.

The cogeneration plant

The plants current

confguration includes:

Combined-cycle 1: one

25 MWe gas turbine (TGC)

and one 5 MWe counter

pressure steam turbine

(TV4);

Combined-cycle 2: one 30

MWe gas turbine (TGD) and

one 5 MWe condensation

steam turbine (TV5);

One 10 MWe gas turbine

(TGA).

Depending on energy

requirements, TGD exhaust

gases can be conveyed

either to two simple recovery

boilers of 16 MWth each (if

heat demand is higher), or to

a steam generator (GVR2) for

the generation of additional

electricity through the TV5

10 MW condensation steam

turbine (if electricity demand

is higher).

A superheated water

production unit inside the

GVR2 provides an additional

3 MW of thermal energy.

Another steam generator

is coupled to the TGC, for

thermal power of 30 MWth and

combined-cycle production

of 30 MW. Exhaust gases

from the TGA are conveyed

to the recovery boiler (REC

A) for thermal production of

16 MWth.

The thermal section is

completed by a 22 MWth

natural gas-fred ancillary

conventional boiler (CB50).

The plants total thermal

power is therefore 87 MW, and

its electrical power is 80 MW.

The plants automation

and supervision system is an

essential factor in achieving

the operational fexibility

required. It has adopted a

system with a distributed

control system (DCS)

architecture. The advanced

technology of the supervision

and control system allows a

high level of plant automation

which eliminates the need for

manual interventions during

ordinary operation and

enables plant operation with

a very small internal workforce.

Furthermore, t

cospp20140910-dl

Documents

distributed energy

plant energy performance

turkeys energy mix

right energy policy

uk market

european market

heat pumps

core market drivers