Promotion of High Efficiency Cogeneration

The ministerial decree of 4th August, 2011 contains the new Annexes which partly replace and supplement the Annexes of the Decree no. 20/2007 that implements Directive 2004/8/EC on the promotion of cogeneration (CHP). This measure defines the new calculation method for the recognition of high efficiency cogeneration. The ministerial decree of 5th September, 2011 defines the incentive mechanisms for high efficiency cogeneration. It introduced an incentive system based on White Certificates Scheme, which is recognized for a period of 10 years for generation plant and of 15 years for combined district heating plants. A coefficient (K) is applied to the White Certificate?s base value, for five different capacity echelons, taking into account the different average yields of the plants and the development potential of small and medium CHP. The qualification as a high efficiency cogeneration is issued by GSE (Energy Services Operator), which annually recognizes a corresponding incentive to the actual primary energy savings achieved and measured by the plant. Incentives for renovations of existing plants and those which came into operation after 1 April 1999 and before the Decree no. 20/2007 are reduced by 30% compared to those granted for new plants for a period of five years.