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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10. SummaryoftheSwedishandDanish situation Sweden has a well-developed district heating network with only a small share of combined heat and power plants. In the year 2000 the share of the district heat coming from the CHP plants was about 10 % of the total district heat production. The share of the CHP plants from the Swedish electricity production was 7 % in the year 2001. Major reason for the low share of the CHP plants in Sweden has been the large amount of the available nuclear and hydropower. To make the small-scale CHP more feasible the Swedish government is giving investment subsidies for the CHP investments and tax reliefs for biomass fuels. Subsidies on 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. The biofuels are taxed only on the basis of their NOx content, and in the production of under 10 MWe biofuels are exempted also from this tax. Peat is taxed as biofuels, but SO2 tax must be paid also from peat. In the CHP plants no energy or CO2 taxes have to be paid from the fuels that are used for electricity production. From the fuels that are used for heat production half of the energy tax must be paid. Currently the market for the small-scale CHP plants is very limited in Sweden. Some already built CHP units have been taken out of operation due to economical reasons. However, there is a potential to replace small district heating units with CHP, if the economical conditions will still be improved, for example, with a more favourable energy taxation system or with investment subsidies. There is also some potential to connect more single houses into the small-scale district heating networks. The total CHP potential in Sweden is estimated to be in the order of 10 to 20 TWhe per year in the future. From this amount the small-scale CHP plants might stand for 20 %. Complete listings of Swedish CHP power plants were not available for this report. The available information of the small-scale CHP plants was collected and some of the CHP plants were also visited. As the newest CHP plants were compared, a good state-of-art solution could be found e.g. in the Härnösand CHP plant and in the Sandvik II CHP plant in Växjö. In Denmark the CHP plants supply about 70 % of the yearly electricity production, and one fourth of this is generated with the small-scale CHP plants. From the domestic district heat production the CHP plants generate 80 %, of which one third is generated in the small-scale CHP plants. In Denmark the phrase small-scale plant refers to all plants outside the centrally supplied areas, which includes plants up to 99 MWe. 70

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