Background Report on Implementing the Cogeneration Directive

This report is prepared in support of the implementation of Article 11 of the Cogeneration Directive (2004/8/EC), which states that the Commission should periodically report on progress in implementing the Directive and its effects in terms of promotion of high efficiency cogeneration. It analyses the potential for high-efficiency cogeneration in the EU and the progress towards realising that potential. The analysis is based on Member States’ national reports, the templates with quantification of national potentials (as submitted by Member States in response to the Commission’s request), external scenario data and technology parameters, and internal Commission analyses. It reviews the progress in transposing the Directive into Member States’ law, which –as the analysis shows – has been generally achieved. Second, it reviews the extent to which the Directive mandated reporting rules and procedures have been implemented; this is generally achieved but the process has suffered lengthy delays and six Member States still have one or more reports outstanding. It compares the effect of the different support schemes promoting CHP. The aim of this analysis is to pinpoint which kind of supporting measures have been more effective in promoting CHP.It contains a review of the Reference Values. It assesses the impact of the EU Emissions Trading Scheme (EU ETS). It presents a number of recommendations that should be considered for improving the effectiveness of the Directive. It is not included in this report but will be sent separately.