Price of electricity and support mechanisms

This LAP analyses:
• The existing support mechanisms for stationary fuel cells (micro-CHP),
• The legal treatment of FC micro-CHP in comparison with other types of cogenerations and solar PV plants,
• The administrative steps necessary to benefit from the support mechanisms.

Glossary:

Does the use of a FC benefit from a support mechanism be it a general support for cogeneration, for self-consumption of electricity or a specific measure for stationary FC.

Pan-European Assessment:

The FC micro-CHP systems must compete with well-established technologies and therefore a non-discriminatory and technology open policy and legal frameworks at EU and national level are needed in order to overcome the market roll-out phase. The residential stationary fuel cells working on natural gas have to be treated in a same way as any other high-efficiency micro-cogeneration units. In case FC micro-CHP systems operate on green gases incl. hydrogen, they have to get the same preferential treatment as power units generating electricity from renewable sources.
The overview of the national policies and funding schemas reveals significant differences in commitment and support for FC micro-CHP systems among the partner countries.

The most of them do not provide any support mechanisms for FC-micro CHP systems. The existing support measures in the rest of the countries are very fragmented and unlikely to contribute substantially to the mass deployment of the residential stationary fuel cells. The most commonly used support measures available for all types of cogeneration units are feed-in tariffs, CAPEX support and incentives for electricity self-production.

select country:

Is it a barrier?

Yes

Type of Barrier

Economic barrier, Regulatory gap

Assessment Severity

Assessment

Needed of the introduction of the FC in the RD 413/2016 and more regulation about renewable resources.Avoid the development of an economy of scales. Until that moment, fuel cells only has a chance if they are considered under the cogeneration definition.

Questions:

Question 1 Does the FC benefit from this form of support:: a - feed-in tariff

a - N o. The royal decree 413/2014 is not designed to introduce the fuel cells. Due to it, there is no specific support mechanisms. In case of the application of specific supports, should be similar to high efficiency cogeneration of natural gas.

Question 1 Does the FC benefit from this form of support:: b - feed-in premium

b - No. The royal decree 413/2014 is not designed to introduce the fuel cells. Due to it, there is no specific support mechanisms. In case of the application of specific supports, should be similar to high efficiency cogeneration of natural gas.

Question 1 Does the FC benefit from this form of support:: c - quota obligation and certification scheme

c - n o. The royal decree 413/2014 is not designed to introduce the fuel cells. Due to it, there is no specific support mechanisms. In case of the application of specific supports, should be similar to high efficiency cogeneration of natural gas.

Question 1 Does the FC benefit from this form of support:: d - CAPEX support

d - No. The royal decree 413/2014 is not designed to introduce the fuel cells. Due to it, there is no specific support mechanisms. In case of the application of specific supports, should be similar to high efficiency cogeneration of natural gas.

Question 1 Does the FC benefit from this form of support:: e - tax incentives

e - No. The royal decree 413/2014 is not designed to introduce the fuel cells. Due to it, there is no specific support mechanisms. In case of the application of specific supports, should be similar to high efficiency cogeneration of natural gas.

Question 1 Does the FC benefit from this form of support:: f - incentives to self-production (net-metering)

f - No. The royal decree 413/2014 is not designed to introduce the fuel cells. Due to it, there is no specific support mechanisms. In case of the application of specific supports, should be similar to high efficiency cogeneration of natural gas.

Question 1 Does the FC benefit from this form of support:: g - others

g - No

Question 2 Techno comparison: a - FC benefit from specific treatment?

a - No. However if the power of the FC falls under the scope of the Royal Decree 413/2014, when the fuel cell uses NG.

Question 2 Techno comparison: b - FC benefit same treatment cogeneration techno?

b - No. However if the power of the FC falls under the scope of the Royal Decree 413/2014, when the fuel cell uses NG.

Question 2 Techno comparison: c - FC benefit same treatment as solar PV (and other means of self-production of electricity)?

c - No. However if the power of the FC falls under the scope of the Royal Decree 413/2014, when the fuel cell uses NG.

Question 2 Techno comparison: d - Explain how Stationary FC support (or absence of support) compare with the comparison technology identified above.

d - As far as the definition of the royal decree 413/2014 which rules the production of electricity from renewable energies, cogeneration and waste does not considered hydrogen, just natural gas fuel cells will be benefited. Nevertheless there is no specific comment about it in the regulation.

Question 3 Explain here the administrative steps necessary to benefit from the support mechanism(s)

Needed of being registered as producer of electricity and obtained the specific compensation arrangements that are explained in the Royal Decree 413/2016

Describe the comparable technology and its relevance with regard to hydrogen

CHP systems with NG

National legislation:

Royal Decree 413/2014, of 6 of June, by which regulates the activity of production of electrical energy from renewable sources of energy, cogeneration and residues
In the two first articles the renewable resources that are considered under Spanish regulation are explained. FCH technologies are able to fall under the definition of a specific group of cogeneration of natural gas as function of the efficiency of the process.

EU Legislation:

Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency
This Directive establishes a common framework of measures for the promotion of energy efficiency within the Union in order to ensure the achievement of the Union’s 2020 20 % headline target on energy efficiency and to pave the way for further energy efficiency improvements beyond that date.

It lays down rules designed to remove barriers in the energy market and overcome market failures that impede efficiency in the supply and use of energy and provides for the establishment of indicative national energy efficiency targets for 2020.