Energy (Miscellaneous Provisions) Act 2006
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Combined heat and power. |
6.— The Act of 1999 is amended— | |
(a) in subsection (1) of section 2— | ||
(i) by the substitution for the definition of “combined heat and power” of the following: | ||
“ ‘ combined heat and power ’ means the simultaneous generation in one process of— | ||
(a) thermal energy and electrical energy, | ||
(b) thermal energy and mechanical energy, or | ||
(c) thermal, electrical and mechanical energy;”, | ||
and | ||
(ii) by the insertion of the following new definitions in alphabetical order: | ||
“‘ economically justifiable demand ’ means the demand that does not exceed the needs for heat or cooling and which would otherwise be satisfied at market conditions by energy generation processes other than cogeneration; | ||
‘ electricity production from combined heat and power ’ means electricity produced from combined heat and power calculated in accordance with section 7; | ||
‘ high efficiency combined heat and power ’ means combined heat and power production which on an annual basis— | ||
(a) in the case of small scale combined heat and power and micro-combined heat and power, achieves primary energy savings calculated in accordance with paragraphs 3 and 4 of Schedule 3, and | ||
(b) in the case of all other combined heat and power, achieves primary energy savings calculated in accordance with paragraphs 3 and 4 of Schedule 3 of at least 10 per cent compared with the references for separate production of heat and electricity; | ||
‘ micro-combined heat and power unit ’ means a combined heat and power unit with a maximum capacity of less than 50 kWe; | ||
‘ small scale combined heat and power ’ means combined heat and power units with an installed capacity greater than 50 kWe and less than 1 MWe; | ||
‘ useful heat ’ means heat produced in a cogeneration process to satisfy an economically justifiable demand for heat or cooling.”, | ||
(b) by the substitution of the following section for section 7— | ||
“Combined heat and power. | ||
7.— (1) Electricity production from combined heat and power shall be calculated in accordance with paragraphs 1 and 2 of Schedule 3. | ||
(2) The Minister may by order appoint a person to calculate and certify the actual power to heat ratios of such classes of combined heat and power units as are specified in the order, and such person shall have such powers and duties as are specified in the order. | ||
(3) A person appointed under subsection (2) shall calculate the actual power to heat ratios of combined heat and power units in accordance with this Act and the Directive. | ||
(4) The Minister may by order specify power to heat ratio default values for any technology or technologies which satisfy the definition of combined heat and power, provided that— | ||
(a) in respect of the technologies referred to in paragraphs (a), (b), (c), (d) and (e) of Annex I of the Directive, such default values shall be consistent with those specified in paragraph (b) of Annex II of the Directive, | ||
(b) in respect of technologies other than those referred to in paragraph (a) of this subsection, such default values shall be notified to the European Commission. | ||
(5) The relative amount of primary energy savings provided by combined heat and power production shall be calculated in accordance with paragraphs 3 and 4 of Schedule 3. | ||
(6) Subject to subsection (7) the Minister may by order determine efficiency reference values for separate electricity and heat production, which values shall be determined in accordance with the principles specified in paragraph 5 of Schedule 3, and the Minister may amend or revoke an order made under this subsection. | ||
(7) Where the European Commission has, in accordance with the procedure referred to in Article 14(2) of the Directive, established detailed guidelines for the implementation and application of Annex II of the Directive— | ||
(a) the Minister shall not make an order under subsection (6) in relation to matters which are the subject of such guidelines, | ||
(b) the efficiency reference values determined by the Minister in an order made under this subsection shall cease to have effect, and | ||
(c) those guidelines shall apply for the purpose of determining the power to heat ratio of electricity produced from combined heat and power. | ||
(8) The Minister may by order amend or revoke an order made under this section including an order made under this subsection. | ||
(9) The provisions of this section and Schedule 3 apply to installations or generating stations whether first licensed before or after the coming into operation of section 6 of the Energy (Miscellaneous Provisions) Act 2006. | ||
(10) In this section ‘ Directive’ means Directive 2004/8/EC of 11 February 2004. 1 ”, | ||
(c) in section 14(1) by the substitution for paragraph (d) (inserted by section 5 ) of the following paragraph: | ||
“(d) to supply electricity to final customers which is generated by that supplier or purchased by that supplier, and which electricity is generated, in whole or in part, using high efficiency combined heat and power, in accordance with the trading arrangements provided for in regulations made by the Commission under section 9(1)(d),”, | ||
and | ||
(d) by the insertion after Schedule 2 (inserted by the Sustainable Energy Act 2002 ) of the matter in the Schedule to this Act as Schedule 3 to the Act of 1999. | ||