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

CAPEX support is possible in some cases

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 - Support may be granted by national funding agency Business Finland to companies of all sizes, including self–employed persons and entrepreneurs and private entrepreneurs - not to housing companies, residential estates, farms or projects implemented in relation to farms, startup projects in receipt of state aid or to government agencies and institutions. New technology (refers to technology that has not been previously used on a commercial scale in Finland) projects can apply for a grant of 40% of renewable energy source and energy efficiency investments at most. For large companies the maximum is 30 %. Minimum budget for applicable projects is 10 000 €.

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

e - Up to the production power of 100 kVA, self–produced electricity is free from electricity tax and from the security of supply cost.

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 - No

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

b - No

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

c - Yes

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

d - Similar to solar photovoltaic

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

The CAPEX support can be applied from Business Finland. The process can be launched with a contact form at https://yhteydenotto.team.finland.fi/contact

Describe the comparable technology and its relevance with regard to hydrogen

Solar photovoltaic

National legislation:

Energy aid from Tekes (the Finnish Funding Agency for Innovation)
Financial energy aid may be granted by Tekes (the Finnish Funding Agency for Innovation) to companies of all sizes, including self–employed persons and entrepreneurs and private entrepreneurs and to communities, such as municipalities, parishes and foundations.
Law about the production tax of electricity and some fuels / Laki sähkön ja eräiden polttoaineiden valmisteverosta. 30.12.1996/1260
Up to the production power of 100 kVA, self–produced electricity is free from electricity tax and from the security-of-supply fee.

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.