It believes private cogeneration is realistic alternative…and seeks to include private cogeneration-related provisions in construction criteria and regulations.
The Seoul City government plans to increase capacity of private cogeneration as part of its effort to raise self-sufficiency ratio of power and address shortage in power supply. The City’s current self-sufficiency ratio of power is 2.8%.
This plan corresponds with the City’s policy of ‘reducing one nuclear power reactor’ that aims at replacing 2 million TOE with other energy sources, equivalent to the amount of power generated by a nuclear reactor. The City government believes that private cogeneration is the most realistic alternative for raising self-sufficiency ratio of power and expand power capacity in a short period of time.
The Private Cogeneration Council (President: Kang Byeong-il) hosted on June 26 the ‘Policy Seminar for Expediting Distribution of Private Cogeneration Systems at the Gyeonggi Small Business Center (GSBC) building. The seminar was sponsored by Korea City Gas Association (President: Lee Man-deuk) and Korea Gas Corporation (KOGAS). The seminar was attended by over 100 officials and managers at local governments and city gas companies across the country.
At the seminar, Green Energy Officer Kang Chi-seok at the Seoul City government presented a paper under the topic of ‘Seoul City’s Policy of Reducing One Nuclear Power Reactor and Distribution of Private Cogeneration Facilities’. In the paper, Green Energy Officer Kang Chi-seok said that the City government will raise self-sufficiency ratio of power by 0.9% to 3.7%, adding private cogeneration capacity by 12.5MW by 2014.
The Seoul City authority installed private cogeneration facilities in capacity of 98MW at 49 locations up until 2011, but it did not install any of such facilities in 2012. Moreover, 44 facilities in 49 locations are in normal operation, while 2 of them suspended operation and 3 others either switched to heating systems or in remodeling process.
The City official cited several reasons for sluggish distribution of private cogeneration facilities, including electric charges lower than prime costs, decrease in economic efficiency due to heavy installation costs, insufficient legal grounds for encouraging installation of facilities, and absence of subsidies for installing facilities.
Accordingly, the City government believes that electric charges should be raised while expanding policy support for the industry. It also sees necessity of including building retrofit projects (BRPs) in programs eligible for loan support and adopting system of mandating district heating companies to supply heat.
The Seoul City government plans to increase capacity of private cogeneration power from the current 98MW at 44 facilities to 110.5MW at 59 facilities by 2015 by adding 2.5MW at 5 facilities in 2014 and 10MW at 10 facilities in 2015. Specifically, it intends to increase capacity of private cogeneration at apartment houses from the current 18MW at 28 complexes to 27.4MW at 41 complexes by 2015 by adding 0.9MW at 4 complexes in 2014 and 8.5MW at 9 complexes in 2015. As for business buildings, it will increase capacity of private cogeneration at such buildings from the current 80MW at 16 buildings to 83.1MW at 18 buildings by 2015 by adding 1.6MW at 1 building in 2014 and 1.5MW at 1 building in 2015.
In this way, the Seoul City authority intends to increase amount of power generated by private cogeneration facilities to 442GWh a year, representing 0.9% of its entire annual power consumption of 49,565GWh after 2014.
In his paper, Green Energy Officer Kang Chi-seok also said that the City authority is devising a policy of invigorating distribution of private cogeneration facilities. And he explained the City government is examining a regulation of stipulating apartment complexes with more than 500 households ((in floor space of 85 square meters each) to install private cogeneration facilities.
And he added that the City government is seeking ways of mandating installation of private cogeneration facilities at hospitals, hotels, department stores and complex buildings. He also said that it is considering means of mandating installation of such facilities in the criteria for building eco-friendly buildings as well as means of using cogeneration facilities for saving energy.
Also, the City government plans to continuously recommend the central government to include the goal of distributing private cogeneration facilities in the master plan for power demand and supply. For one thing, the central government defined to generate 2.7 million kW of power through private cogeneration facilities by 2017 in the third master plan for demand and supply of power, but that item is deleted from the master plan now.
And, believing that private cogeneration will provide conspicuous cost effectiveness by bringing benefits of 450,000 won per 1kW and mitigate power peak by securing more power reserves, the City official said the City government will continually suggest the central government to improve electric charge systems and support subsidies.
Meanwhile, several other papers were also presented at the seminar. They include ‘Importance of Distributed Power Sources and Role of Private Cogeneration’ (Director General Cheon Seok-hyeon at Korea Energy Management Corporation), ‘Examples of Using Bio-gas for Cogeneration Facilities’ (Deputy Department Manager Choi Seok-min at Coastal Power), ‘Way of Installing Smart Grid Designated for Cogeneration’ (Dr. Lee Tae-won at Korea Institute of Construction Technology), and ‘Survey on Private Cogeneration Market and Way of Supporting the Industry’ (Department Manager Jo Min-ho at JH Energy).
Source : e2news