2 tal-2007 - Regolamenti dwar il-Koġenerazzjoni, 2007

L.N. 2 of 2007

MALTA RESOURCES AUTHORITY ACT

(CAP. 423)

Cogeneration Regulations, 2007

BY virtue of the powers conferred by article 28 of the Malta

Resources Authority Act, the Minister for Resources and Infrastructure,

after consultation with the Malta Resources Authority, has made the

following regulations>-

(1) The title of these regulations is the Cogeneration Title and date of

commencement.

Regulations, 2007.

(2) These regulations shall come into force on 19th January,

2007.

Regulation 3

Cogeneration technologies covered by these regulations

(a) Combined cycle gas turbine with heat recovery

(b) Steam backpressure turbine

(c) Steam condensing extraction turbine

(d) Gas turbine with heat recovery

(e) Internal combustion engine

(f) Microturbines

(g) Stirling engines

(h) Fuel cells

(i) Steam engines

(j) Organic Rankine cycles

(k) Any other type of technology or combination thereof

falling under the definition laid down in sub-regulation (1) of

regulation 4 of these regulations.

These regulations give effect to Directive 2004#8#EC of the Object.

European Parliament and of the Council of 11 February 2004 on the

promotion of cogeneration based on a useful heat demand in the internal

energy market and amending Directive 94#42#EEC.

Regulations 4(1), 5(4), 10(2), 11(1) and (3), 12(1) and (3)

Calculation of electricity from cogeneration

Values used for calculation of electricity from cogeneration

shall be determined on the basis of the expected or actual operation

of the unit under normal conditions of use. For micro-cogeneration

units the calculation may be based on certified values.

(a) Electricity production from cogeneration shall be

considered equal to total annual electricity production of the unit

measured at the outlet of the main generators

(i) in cogeneration units of type (b), (d), (e), (f), (g) and

(h) referred to in the First Schedule to these regulations, with

an annual overall efficiency of at least 75%; and

(ii) in cogeneration units of type (a) and (c) referred to in

the First Schedule to these regulations with an annual overall

efficiency set by the Authority at a level of at least 80%.

(b) In cogeneration units with an annual overall efficiency

below the value referred to in paragraph (a)(i) (cogeneration units

of type (b), (d), (e), (f), (g), and (h) referred to in the First Schedule

to these regulations) or with an annual overall efficiency below the

value referred to in paragraph (a)(ii) (cogeneration units of type (a)

and (c) referred to in the First Schedule to these regulations)

cogeneration is calculated according to the following formula

E CHP = H CHP . C

where

“E CHP ” is the amount of electricity from cogeneration

“C” is the power to heat ratio

“H CHP ” is the amount of useful heat from cogeneration

(calculated for this purpose as total heat production minus any heat

produced in separate boilers or by live steam extraction from the

steam generator before the turbine).

The calculation of electricity from cogeneration must be based

on the actual power to heat ratio. If the actual power to heat ratio of

a cogeneration unit is not known, the following default values may

be used, notably for statistical purposes, for units of type (a), (b),

(c), (d), and (e) referred to in the First Schedule to these regulations

provided that the calculated cogeneration electricity is less or equal

to total electricity production of the unit

Default power to heat

Type of the unit

ratio, C

Combined cycle gas turbine with heat

0.95

recovery

Steam backpressure turbine

0.45

Steam condensing extraction turbine

0.45

Gas turbine with heat recovery

0.55

Internal combustion engine

0.75

If the Authority introduces default values for power to heat

ratios for units of type (f), (g), (h), (i), (j) and (k) referred to in the

First Schedule to these regulations, such default values shall be

published and shall be notified to the Minister.

(c) If a share of the energy content of the fuel input to the

cogeneration process is recovered in chemicals and recycled this

share can be subtracted from the fuel input before calculating the

overall efficiency used in paragraphs (a) and (b) of this Schedule.

(d) The Authority may determine the power to heat ratio as

the ratio between electricity and useful heat when operating in

cogeneration mode at a lower capacity using the operational data of

the specific unit.

(e) The Authority may use other reporting periods than one

year for the purpose of the calculations according to paragraphs (a)

and (b) of this Schedule.

These Regulations shall apply to cogeneration as defined in Scope.

regulation 4 of these regulations and cogeneration technologies as listed

in the First Schedule to these regulations.

Regulations 4(1), 5(4), 10(2), 11(2) and 12(2)

Methodology

for determining the efficiency of the cogeneration process

Values used for calculation of efficiency of cogeneration and

primary energy savings shall be determined on the basis of the

expected or actual operation of the unit under normal conditions of

use.

(a) High-efficiency cogeneration

For the purpose of these regulations

high-efficiency

cogeneration shall fulfil the following criteria

(i) cogeneration production from cogeneration units

shall provide primary energy savings calculated according to

paragraph (b) of this Schedule of at least 10% compared with

the references for separate production of heat and electricity,

(ii) production from small scale and micro cogeneration

units providing primary energy savings may qualify as high-

efficiency cogeneration.

(b) Calculation of primary energy savings

The amount of primary energy savings provided by

cogeneration production defined in accordance with the Second

Schedule to these regulations shall be calculated on the basis of the

following formula

PES =

1 –

× 100%

CHP H

CHP E

+

Ref H

Ref E

where

“PES” is primary energy savings.

“CHP H ” is the heat efficiency of the cogeneration

production defined as annual useful heat output divided by the fuel

input used to produce the sum of useful heat output and electricity

from cogeneration.

“Ref H ” is the efficiency reference value for separate heat

production.

“CHP E ” is the electrical efficiency of the cogeneration

production defined as annual electricity from cogeneration divided

by the fuel input used to produce the sum of useful heat output and

electricity from cogeneration. Where a cogeneration unit generates

mechanical energy, the annual electricity from cogeneration may

be increased by an additional element representing the amount of

electricity which is equivalent to that of mechanical energy. This

additional element will not create a right to issue guarantees of

origin in accordance with regulation 5 of these regulations.

“Ref E ” is the efficiency reference value for separate

electricity production.

(c) Calculations of energy savings using alternative

calculation according to sub-regulation (2) of regulation 11 of

these regulations

If primary energy savings for a process are calculated in

accordance with sub-regulation (2) of regulation 11 of these

regulations the primary energy savings shall be calculated using the

formula in paragraph (b) of this Schedule replacing

“CHP H ” with “H ” and

“CHP E ” with “E ”,

where

H shall mean the heat efficiency of the process, defined as

the annual heat output divided by the fuel input used to produce the

sum of heat output and electricity output.

E shall mean the electricity efficiency of the process, defined

as the annual electricity output divided by the fuel input used to

produce the sum of heat output and electricity output. Where a

cogeneration unit generates mechanical energy, the annual

electricity from cogeneration may be increased by an additional

element representing the amount of electricity which is equivalent

to that of mechanical energy. This additional element will not

create a right to issue guarantees of origin in accordance with

regulation 5 of the regulations.

(d) The Authority may use other reporting periods than one

year for the purpose of the calculations according to paragraphs (b)

and (c) of this Schedule.

(e) For micro-cogeneration units the calculation of primary

energy savings may be based on certified data.

(f) Efficiency reference values for separate production of

heat and electricity

The principles for defining the efficiency reference values for

separate production of heat and electricity referred to in sub-

regulation (1) of regulation 5 of these regulations and in the

formula set out in paragraph (b) of this Schedule shall establish the

operating efficiency of the separate heat and electricity production

that cogeneration is intended to substitute.

The efficiency reference values shall be calculated according to the

following principles

(i) For cogeneration units as defined in regulation 4 of

these regulations, the comparison with separate electricity

production shall be based on the principle that the same fuel

categories are compared.

(ii) Each cogeneration unit shall be compared with the

best available and economically justifiable technology for

separate production of heat and electricity on the market in the

year of construction of the cogeneration unit.

(iii) The efficiency reference values for cogeneration

units older than 10 years of age shall be fixed on the reference

values of units of 10 years of age.

(1)

In these regulations unless the context otherwise Interpretation.

requires -

“the Act” means the Malta Resources Authority Act<

“the Authority” means the Malta Resources Authority<

“back-up electricity” means the electricity supplied through

the electricity grid whenever the cogeneration process is disrupted,

including maintenance periods, or is out of order<

“cogeneration” means the simultaneous generation in one

process of thermal energy and electrical and#or mechanical energy<

“cogeneration production” means the sum of electricity and

mechanical energy and useful heat from cogeneration<

“cogeneration unit” means a unit that can operate in

cogeneration mode<

“Commission” means the Commission of the Community<

“the Community” means the European Community<

“the Directive” means the Directive 2004#8#EC of the

European Parliament and of the Council of 11 February 2004 on

the promotion of cogeneration based on a useful heat demand in

the internal energy market and amending Directive 94#42#EEC<

“economically justifiable demand” means the demand that

does not exceed the needs for heat or cooling and which would

otherwise be satisfied at market conditions by energy generation

processes other than cogeneration<

“efficiency” means efficiency calculated on the basis of “net

calorific values” of fuels (also referred to as “lower calorific

values”)<

“efficiency reference value for separate production” means

efficiency of the alternative separate productions of heat and

electricity that the cogeneration process is intended to substitute<

“electricity from cogeneration” means electricity generated

in a process linked to the production of useful heat and calculated

in accordance with the methodology laid down in the Second

Schedule to these regulations<

“high efficiency cogeneration” means cogeneration meeting

the criteria of the Third Schedule to these regulations<

“Member State” means a Member State of the Community<

“micro-cogeneration unit” means a cogeneration unit with a

maximum capacity below 50 kW e <

“the Minister” means the Minister responsible for resources<

“overall efficiency” means the annual sum of electricity and

mechanical energy production and useful heat output divided by

the fuel input used for heat produced in a cogeneration process

and gross electricity and mechanical energy production<

“power to heat ratio” means the ratio between electricity from

cogeneration and useful heat when operating in full cogeneration

mode using operational data of the specific unit<

“small scale cogeneration” means cogeneration units with an

installed capacity below 1 MW e <

“top-up electricity” means the electricity supplied through

the electricity grid in cases where the electricity demand is greater

than the electrical output of the cogeneration process< and

“useful heat” means heat produced in a cogeneration process

to satisfy an economically justifiable demand for heat or cooling.

(2) In addition, the relevant definitions in the Electricity

Regulations, 2004, and in the Promotion of Electricity produced from L.N. 511 of 2004.

Renewable Energy Sources Regulations, 2004, shall also apply to these L.N. 186 of 2004.

regulations.

Regulation 6(2)

Criteria for analysis of national potentials

for high-efficiency cogeneration

(a) The analysis of national potentials referred to in

regulation 6 of these regulations shall consider

(i) the type of fuels that are likely to be used to realise

the cogeneration potentials, including specific considerations

on the potential for increasing the use of renewable energy

sources in the national heat markets via cogeneration;

(ii) the type of cogeneration technologies as listed in the

First Schedule to these regulations that are likely to be used to

realise the national potential;

(iii) the type of separate production of heat and electricity

or, where feasible, mechanical energy that high-efficiency

cogeneration is likely to substitute; and

(iv) a division of the potential into modernisation of

existing capacity and construction of new capacity.

(b) The analysis shall include appropriate mechanisms to

assess the cost effectiveness — in terms of primary energy savings

— of increasing the share of high-efficiency cogeneration in the

national energy mix. The analysis of cost effectiveness shall also

take into account national commitments accepted in the context of

the climate change commitments accepted by the Community

pursuant to the Kyoto Protocol to the United Nations Framework

Convention on Climate Change.

(c) The analysis of the national cogeneration potential shall

specify the potentials in relation to the timeframes 2010, 2015 and

2020 and include, where feasible, appropriate cost estimates for

each of the timeframes.

Mitbug[ fl-Istamperija tal-Gvern — Printed at the Government Printing Press

(1) On the basis of the harmonised efficiency reference Guarantee of origin

of electricity from

values established by the Commission in accordance with the Directive, high-efficiency

the Authority shall, within six months after the adoption of these values, cogeneration.

ensure that the origin of electricity produced from high efficiency

cogeneration is guaranteed according to objective, transparent and non-

discriminatory criteria>

Provided that in so doing the Authority shall ensure that this

guarantee of origin of electricity enables producers to demonstrate that

the electricity such producers sell is produced from high efficiency

cogeneration and is issued to this effect in response to a request from

the producer.

(2) The Authority shall have in place mechanisms that

ensure that the guarantee of origin is both accurate and reliable.

(3) Schemes for the guarantee of origin do not by themselves

imply a right to benefit from the national support mechanisms.

(4) Apart from any such additional information that the

Authority may decide to include, a guarantee of origin shall>

(a) specify the lower calorific value of the fuel source from

which the electricity was produced, the use of the heat generated

together with the electricity and, finally, the dates and places of

production,

(b) specify the quantity of electricity from high efficiency

cogeneration in accordance with the Second Schedule to these

regulations that the guarantee represents,

(c) specify the primary energy savings calculated in

accordance with the Third Schedule to these regulations based on

harmonised efficiency reference values established by the Authority

as referred to in sub-regulation (1) of this regulation.

(5) Guarantees of origin issued in other Member States

according to Article 5 (1) of the Directive, shall be recognised by the

Authority, exclusively as proof of the elements referred in sub-regulation

(4) of this regulation>

Provided that any refusal to recognise a guarantee of origin

as such proof, in particular for reasons relating to the prevention of

fraud, shall be based on objective, transparent and non-discriminatory

criteria>

Provided further that, where the Authority refuses to recognise

a guarantee of origin issued in another Member State, it shall recognise

that guarantee of origin where the Commission requires such recognition

under Article 5(6) of the Directive.

(1) The Authority shall establish an analysis of the national

potential for the application of high-efficiency cogeneration, including

high-efficiency micro-cogeneration.

(2) The analysis shall>

(a) be based on well-documented scientific data and comply

with the criteria listed in Fourth Schedule to these regulations<

(b) identify all potential for useful heating and cooling

demands, suitable for application of high-efficiency cogeneration,

as well as the availability of fuels and other energy resources to be

utilised in cogeneration<

(c) include a separate analysis of barriers, which may

prevent the realisation of the national potential for high-efficiency

cogeneration. In particular, this analysis shall consider barriers

relating to the prices and costs of and access to fuels, barriers in

relation to grid system issues, barriers in relation to administrative

procedures, and barriers relating to the lack of internalisation of

the external costs in energy prices.

(3) The Authority shall for the first time not later than 21

January 2007 and thereafter every four years, evaluate progress towards

increasing the share of high-efficiency cogeneration.

(1) The Authority may promote the use of cogeneration Support Schemes.

through the implementation of such measures as it may consider

expedient and which are not contrary to the provisions of the Act or of

these regulations.

(2) The Authority shall ensure that support for cogeneration

is based on the useful heat demand and primary energy savings, in the

light of opportunities available for reducing energy demand through

other economically feasible or environmental advantageous measures

like other energy efficiency measures.

(1) For the purpose of ensuring the transmission and Electricity

grid system and

distribution of electricity produced from high-efficiency cogeneration tariff issues.

the provisions of regulation 7 of the Promotion of Electricity produced

from Renewable Energy Sources Regulations, 2004, and relevant L.N. 186 of 2004.

provisions of the Electricity Regulations, 2004, shall apply.

L.N. 511 of 2004.

(2) The Authority shall take the necessary measures to

ensure that the tariffs for the purchase of electricity to back-up or top-

up electricity generation are set on the basis of published tariffs and

terms and conditions.

(3) The Authority, subject to the Minister’s approval, may

facilitate access to the grid system of electricity produced from high-

efficiency cogeneration from small scale and micro cogeneration units.

(1) The Authority shall evaluate the existing legislative and Administrative

regulatory framework with regard to authorisation procedures or the procedures.

other procedures laid down in regulation 12 of the Electricity

Regulations, 2004, which are applicable to high-efficiency cogeneration

units. Such evaluation shall be made with a view to>

(a) encouraging the design of cogeneration units to match

economically justifiable demands for useful heat output and

avoiding production of more heat than useful heat<

(b) reducing the regulatory and non-regulatory barriers to

an increase in cogeneration<

(c) streamlining and expediting procedures at the

appropriate administrative level< and

(d) ensuring that the rules are objective, transparent and non-

discriminatory, and take full account of the particularities of the

various cogeneration technologies.

(2) The Authority shall provide an indication of the stage

reached specifically in>

(a) coordination between the different administrative bodies

as regards deadlines, reception and treatment of applications for

authorisations<

(b) the drawing up of possible guidelines for the activities

referred to in subregulation 1 of this regulation, and the feasibility

of a fast-track planning procedure for cogeneration producers< and

(c) the designation of authorities to act as mediators in

disputes between authorities responsible for issuing authorisations

and applicants for authorisations.

(3) In carrying out its functions under this regulation, the

Authority shall cooperate with other national regulatory authorities in

other Member States and with the Commission.

(1) The Authority shall not later than 21 st February, 2007,

and, thereafter, every four years, submit to the Minister a report

with the result of the evaluation referred to in sub-regulation (3) of

regulation 6.

(2) The Authority shall submit to the Minister, on an annual

basis, statistics on national electricity and heat production from

cogeneration, in accordance with the methodology shown in the Second

Schedule to these regulations>

Provided that the Authority shall also submit annual statistics

on cogeneration capacities and fuels used for cogeneration>

Provided further that the Authority may also submit statistics

on primary energy savings achieved by application of cogeneration, in

accordance with the methodology shown in the Third Schedule to these

regulations.

(1) Until the end of 2010 and subject to prior approval by

the Minister, the Authority may use methods other than the one provided

for in paragraph (b) of the Second Schedule to these regulations to

subtract possible electricity production not produced in a cogeneration

process from the reported figures>

Provided that, for the purposes referred to in sub-regulation

(1) of regulation 5 and sub-regulation (2) of regulation 10 of these

regulations, the quantity of electricity from cogeneration shall be

determined in accordance with the Second Schedule to these regulations.

(2) The Authority may calculate primary energy savings

from a production of heat and electricity and mechanical energy

according to paragraph (c) of the Third Schedule to these regulations

without using the Second Schedule to these regulations to exclude the

non-cogenerated heat and electricity parts of the same process>

Provided that such a production can be regarded as high-

efficiency cogeneration if it fulfils the efficiency criteria in paragraph

(a) of the Third Schedule to these regulations and, for cogeneration

units with an electrical capacity larger than 25 MW, the overall efficiency

is above 70%>

Provided further that specification of the quantity of electricity

from cogeneration produced in such a production, for issuing a guarantee

of origin and for statistical purposes, shall be determined in accordance

with the Second Schedule to these regulations.

(3) Until the end of 2010, the Authority may, using an

alternative methodology, define a cogeneration as high-efficiency

cogeneration without verifying that the cogeneration production fulfils

the criteria in paragraph (a) of the Third Schedule to these regulations

if it is proved that the cogeneration production identified by such an

alternative calculation methodology on average fulfils the criteria in

paragraph (a) of the Third Schedule to these regulations>

Provided that, if a guarantee of origin is issued for such

production, then the efficiency of the cogeneration production specified

on the guarantee shall not exceed the threshold values of the criteria in

paragraph (a) of the Third Schedule to these regulations unless

calculations in accordance with the Third Schedule to these regulations

prove otherwise>

Provided further that specification of the quantity of electricity

from cogeneration produced in such a production, for issuing a guarantee

of origin and for statistical purposes, shall be determined in accordance

with the Second Schedule to these regulations.