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The most efficient CHP plants have an energy efficiency approaching 90% and are dispatched based on competitive pricing. One example are the modern and sleek Avedøre 1 & 2 CHP plants (see Figure 2) that produce 810 MW of electricity and 900 MW of thermal energy at an average fuel efficiency of over 90%. By simultaneously generating heat and electricity, Avedøre Power Station’s Unit 2 utilizes as much as 94 % of the energy in the fuels and has an electrical efficiency of 49%, an achievement that makes the unit one of the most efficient in the world. The share of district heating produced at CHP plants in Denmark has more than doubled, from 39% to 80%, since 1980. Similarly, the share of electricity cogenerated with heat has gone up from just under 18% to over 60% in 2006 (see Figure 3). Figure 3. Denmark: CHP share of district heating and electricity. Tax Incentives and Consumer Economics In the mid-1980s, the Federal Government introduced tax incentives on fuel for electricity plants. Electricity generators paid less fuel tax if they used CHP (in some cases this amount equated to less than 50% tax incentive). This enabled the companies to sell heat to consumers at a lower price and discouraged inefficient combustion in individual boiler plants. The price for district heating is highly competitive to other forms of energy. CTR's heating price, which is a pool system price, is identical for all five municipalities, and has basically been stable over the Copyright ©2009 International District Energy Association. All rights reserved. 4PDF Image | Copenhagens District Heating System
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