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

There is no LAP specific for FC micro CHP, and the application is not considered very relevant for Norway. Given that electricity in Norway largely is based on hydropower and also very cheap, there are high economic barriers to self-production, even when it is based on mature wind or solar power (PV) technologies. While FC micro CHP based on renewable sources would benefit from the same incentives as these technologies, FC micro CHP based on grey hydrogen is not considered as a sustainable alternative in the Norwegian setting.

Questions:

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

a - no

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

b - no

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

c - no

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

d - FC micro CHP based on natural gas or LPG are not supported and also not relevant in the Norwegian context, where almost all electricity is based on hydropower. There is however, support for self-production based on renewable sources.

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

e - no

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

f - no

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 - FC is not explicitly aonsidered, but if used with a renewable source , FC micro CHP would benefit from the same self-production support that is offered to private houseowners wishing to install solar PV or wind solutions.

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

b - FC is not explicitly considered, but if used with a renewable source , FC micro CHP would benefit from the same self-production support that is offered for installation of solar PV or wind solutions.

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

c - FC is not explicitly considered, but if used with a renewable source , FC micro CHP would benefit from the same self-production support that is offered to private houseowners wishing to install solar PV or wind solutions.

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

d - FC is not explicitly considered, but if used with a renewable source , FC midro CHP would benefit from the same self-production support that is offered to private houseowners wishing to install solar PV or wind solutions.

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

To benefit from the support scheme for self-production of electricity, the actor must follow a simple, individual application procedure. The criteria and form are available via internet. (https://www.enova.no/privat/alle-energitiltak/solenergi/el-produksjon-/). The requirements include documentation showing that the electricity is produced from a renewable source, and that a prosumer (plusskunde) agreement with the grid company is in place.

Describe the comparable technology and its relevance with regard to hydrogen

Solar PV and wind cogeneration systems.

National legislation:

Energy Act of 1991, last amended 01.01.2017 / Lov om produksjon, omforming, overføring, omsetning, fordeling og bruk av energi m.m. (energiloven)
Chapter 3, electricity installations, chapter 4, trade in electrical energy.
Regulation of power grid line companies/ Forskrift om økonomisk og teknisk rapportering, inntektsramme for nettvirksomheten og tariffer, of 1999, last amended 01.01.2017
Chapter 1, General provisions, defines the role of self-producing customers, payment and responsibility for grid services. Chapte 7, Income and tariffs.

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.