Promotion of cogeneration based on a useful heat demand in the internal energy market

PURPOSE : to create a framework for promotion of cogeneration based on useful heat demand in the internal energy market. LEGISLATIVE ACT : Directive 2004/8/EC of the European Parliament and of the Council on the promotion of cogeneration based on a useful heat demand in the internal energy market and amending Directive 92/42/EEC. CONTENT : The Council approved all the amendments adopted by the European Parliament in second reading. This Directive is a key component of the EU's strategy for energy efficiency and energy savings and for contributing to the reduction of CO2 emissions. It also aims at improving security of energy supply. It provides for a regulatory framework for the promotion and development of the simultaneous generation in one process of heat and electrical and /or mechanical power. The Directive includes provisions concerning the electricity grid system and tariff issues, as well as on the definition of power-to-heat ratio and co-generation units. By introducing harmonised provisions throughout the Community, it aims at overcoming current divergences whereby some Member States already have support schemes and targets for co-generation whilst others still have no provisions on electricity production from co-generation. The main elements of the Directive are the following: - common definitions of cogeneration and common criteria for high efficiency cogeneration via calculation of primary energy savings; - obligations on Member States to carry out analysis of the national potential for high efficiency cogeneration; - provisions for a system of "Guarantee of origin" enabling producers of electricity from cogeneration to demonstrate that the electricity really is produced from cogeneration; - provisions for evaluating the experiences gained with the application and coexistence of different support mechanisms for cogeneration used by Member States; - provisions laying down the principles for the interaction between cogeneration producers and the electricity grid; - provisions requiring Member States to evaluate current administrative procedures with a view to reducing the administrative barriers to the development of cogeneration. ENTRY INTO FORCE : 21/02/2004. DATE OF TRANSPOSITION : 21/02/2006.�