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Small-scale biomass CHP Finland Denmark and Sweden

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Small-scale biomass CHP Finland Denmark and Sweden ( small-scale-biomass-chp-finland-denmark-and-sweden )

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production in the CHP plants are subject to only a half of the energy tax rate [Swedish National Energy Administration, 2000c]. It can be noted that no minimum feed-in rate is presently granted for the small-scale CHP plants. There are ongoing discussions on the guaranteed feed-in rates of 26 Öre/kWhe (3 cent/kWhe) for the small-scale CHP plants.[Swedish National Energy Administration, 2001a] 6.4 Future potential of the small-scale biomass CHP plants in Sweden Although the CHP plants do not represent a very large share of the electricity production in Sweden, the political goals to decrease the nuclear power production and not to extend the hydropower production are important factors driving the development of the CHP plants forward. Renewable energy sources are important alternatives to reach the political goal of not increasing the nuclear or hydropower production. On the basis of this goal the CHP plants using biofuels are supported by the Swedish government. Also converting the existing heat or power generating plants into the biofuel CHP plants will be supported by the government. [Salomón, 2002] Currently the market for the small-scale CHP plants is very limited in Sweden. Some already built CHP units have been taken out of the operation due to the economical reasons. However, there is a potential to replace small district heating units with CHP, if the economical conditions improve, for example, due to a favorable energy taxation system and investment subsidies. There is also some potential to connect more single houses to the small-scale district heating networks. [Salomón, 2002] Regarding the combined heat and power production, subsidies are paid for the investments of new plants as well as for the renovation and upgrading of existing power plants using biofuels for the CHP production. The budget is 450 million SEK (50 Million EUR) for the period of five years. Subsidies on the investments for new plants or renovation and upgrading purposes are 3000 SEK (345 EUR) per installed kWe electrical power. This can account up to 25 % of the total investment cost [Swedish National Energy Administration, 2000b]. The aim is to increase the proportion of the electricity produced with biofuels to at least 750 GWhe [Swedish National Energy Administration, 2000b]. Some examples of the investment costs and subsidies for the small-scale CHP plants using biofuels are summarized in Table 7. More detailed descriptions of these CHP plants can be found from Table 8. 49

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