Conference article

Main contentious issues of public regulation to support CHP as an efficient thermal power cycle are discussed. First the merit of CHP is defined as the transformation of residual heat in conventional power plants into useful heat; this merit suffices to rank CHP activity prior to standard thermal power generation wasting the heat. Second; the main metrics of CHP performance is the amount of co-generated electricity requiring uncontested identification when CHP activity is mixed with condensing power generation (mainly in extractioncondensing steam turbines). The proper method is based on design characteristics of CHP processes; not on arbitrary averages as CEN proposes. Therefore; the novel concept of “bliss point” of a CHP activity is developed. Third it is argued why co-generated power – clearly measured – is a sufficient performance indicator. Additional qualifications based on external benchmarks (as the EU-Directive allows) may imply perverse incentives in impeding CHP development qualitatively and quantitatively. The difference between perverse and benign regulations explains the wavering position of the EU-2004 Directive on the promotion of CHP.

CHP quality; Power-to-heat ratio; EU Directive; Incentive Regulation; Benchmarking