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

The European Commission has submitted an amended proposal, which takes into consideration many of the amendments made by the Parliament. These include the following: - the three categories of cogeneration are deleted, as they were criticised as not needed in the European Parliament as well as in the Council; - there is a new definition of "micro-cogeneration" as units below 50kWe; - there is a new definition saying that micro-cogeneration with an overall efficiency above 80% shall be regarded as high efficiency cogeneration. Thereby the route for approval as high efficiency cogeneration is eased because once proved above this threshold no further calculations for each unit is needed; - several timeframes are changed in order to speed up implementation. The Commission states that it can accept these changes in principle, but Member States will probably be opposed to the changes; - the Commission has introduced harmonised reference values for separate production. These will be used instead of national values. Using harmonised reference values will reduce market distortions and contribute to the creation of a level playing field. The harmonised values must be established based on comprehensive studies and including consultations with the sector. The study must be established by the Commission and finally adopted in accordance with a procedure including establishment of a Committee. As a consequence of introducing the harmonised reference values the paragraphs dealing with national reference values are deleted; - Member States' support programmes must be non-discriminatory; - transmission and distribution system operators will not be allowed to impose unrealistic connection fees for connecting cogeneration units below 1 MWe just as costs and administrative burdens must be reduced to an absolute minimum. Furthermore the production from these units must be guaranteed a fair price for electricity sold to the grid. This will establish reasonable conditions for the small-scale producers; - the Commission cannot accept the detailed calculation method with new notations. The original notations are maintained and that the power to heat ratio is defined as the capacity related power to heat ratio; -the Commission maintains the original formula for the calculation of primary energy savings.�