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purposes, which comes as a result of favorable policy of these states. In countries such as Finland, Sweden and Denmark the use of biomass has long tradition and well developed market. Germany had around 160 plants in 2006, with total capacity of 1,100 MWel, with average size of CHP plant of 6.8 MWel. The following feed-in tariffs were established for biomass and biogas in 2006 [2]: basic tariff level (up to 20 MW) of 80.3 – 109.9 €/MWh, with an annual reduction of 1.5%. The duration of the payment is 20 years, reduced tariffs for waste wood (37.2 €/MWh) and for landfill gas or sewage gas (63.5 - 73.3 €/MWh), bonus payments available for: the use of untreated biomass: 40 – 60 €/MWh, CHP applications: 20 €/MWh, innovative technologies: 20 €/MWh, use of wood combustion: 25 €/MWh – however, this is not available in combination with the untreated biomass bonus. Continuity and stability of the policy framework as well as high feed-in tariffs for biomass applications combined with reasonable investment incentives and loans have generated a considerable market. The average annual growth of biomass electricity over the period 1997 to 2005 was 32%. In 2003, 9.7% (137 PJ) of Austria’s primary energy requirement came from biomass. In this same year, a new Green Electricity Act was put in place, which comprised the following measures supportive of biomass CHP [2]: feed-in tariffs guaranteed for 13 years, inclusion of electricity from biomass (solid, liquid and gaseous) as well as wastes “containing high biomass fractions” - specifically excluding meat and bone meal, black liquor and sewage sludge, a target of at least 4% of final demand from biomass by 2008, an average support level that was put in place in 2003 of 110 €/MWh with a maximum support of 150 €/MWh - the average support level almost double the average generation costs (approximately 60 €/MWh) from competing fuel solutions. Revealing statistics on research and development in Austria are also reported. In 2004, 21% of energy related research and development investment was directed towards bioenergy. This compares with an OECD average of 2.8%. However, indications are that more recent policy is less supportive of biomass CHP and one report suggests that the Austrian market is likely to stagnate. It is also reported that CHP plants receive investment support of up to 10% of the direct investment costs, although this is capped at 400 €/kW. A significant proportion of France’s biomass CHP growth appears to come from use of waste biomass, such as municipal solid waste and wood waste. The production of electricity from solid biomass was contracted over the period 1997 to 2005. A new feed-in tariff mechanism was introduced in 2005 that provided index-linked support ranging from 61 to 91.5 €/MWh for 15 years for CHP projects. A national tender system is now in place for some renewable energy installations. Tenders follow an open bidding process, where the successful applicant receives a guaranteed price contract. The tariff of the contract depends on the bid. In 2005, 14 biomass projects with a total installed capacity of 216 MW were contracted. Another biomass call was issued during 2007. Approximately 60% of the Danish demand for heat is supplied by district heating and more than 50% of the electricity and heat distributed comes from co-generation plants. This demonstrates the strong link between a developed district heating culture and CHP applications. For new biomass installations, a feed-in tariff of 80 €/MWh is guaranteed for a period of 10 years, followed by 54 €/MWh for the next 10 years. There have been CO2 and SO2 taxes in place in Denmark since the early 1990s. Biomass as a CO2 neutral and sulphur-free fuel is exempt from these taxes. Denmark saw a 24% average annual growth of electricity production from biomass over the period 1997 to 2005. 1621PDF Image | POSSIBLE APPLICATION OF CHP IN THE WOOD INDUSTRY IN SERBIA
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