Why power generators react to European ‘taxonomy’

Of Thanks to Floudopoulos

The proposal of the European Commission for classification of economic activities with criteria of environmental and sustainable development provokes reactions among the generators in Europe and Greece. In fact, the Hellenic Association of Independent Power Generators expresses its intense concern and opposition to the proposed regulations.

According to the ESAI, “The European Union has set a binding target of reducing greenhouse gas emissions by 55% (compared to 1990) by 2030. Greenhouse gas emissions have already been reduced by 26%. must be covered in the next nine years.

This is an Herculean effort. Therefore, raising private funds to finance and refinance gas-fired power plants over the current decade must be a key part of the European classification.

“This is because no other available technology can offer such a large reduction in CO2 emissions so quickly and at the same time contribute to the stability of the System by offering backups and ensuring adequate power and avoiding blackouts.”

According to the independent generators, the plan of the European Commission with its “unrealistic conditions” raises concerns regarding the performance of the characterization of the transitional activity in the gas-fired power plants “.

However, according to the Association, “the European Commission’s plan with unrealistic conditions raises concerns about the performance of the transition activity in gas-fired power plants. In addition, the relevant section 4.29 is full of ambiguities and confuses many its points “.

As ESAI characteristically states “the limit of 270 gCO2 / kWh is inapplicable. The latest technology combined cycle units emit 340 gCO2 / kWh with natural gas combustion.

It is noted that these units have the ability to burn H2. However, as in the current decade, it is not possible to commercially supply green hydrogen in significant quantities from the pan-European networks, reaching the 270 gCO2 / kWh limit is not possible. For this and for the new units should be provided:

Their technological ability to use H2 (‘hydrogen ready’)

Emission limit at the level of 340 gCO2 / kWh as long as sufficient quantities of green H2 are not commercially available through networks and markets. This limit should be automatically reduced to 270 gCO2 / kWh at the time when sufficient quantities of green fuel become commercially available “.

At the same time as for the second alternative in order to characterize a power plant as a transitional activity, ie 550 kgCO2 / kW-year, ESAI emphasizes that “this practically means the operation of a new unit for only about 1,600 hours a year. the unsustainability of the investment, especially during the first critical years of its operation.

One solution would be to reach the 550 kgCO2 / kW-year limit as m.o. at least 25 years old, provided that sufficient quantities of low and / or zero emissions fuel are available.

Alternatively, the limit should be set at 1,100 kgCO2 / kW-year for the period 2023-2035 and then gradually reduced, in parallel with the proven penetration of alternative / green fuels, in order to achieve the depth of useful life of a natural gas unit. the limit of 550 kgCO2 / kW-year “.

At the same time, ESAI emphasizes that the provisions of the plan for the process of replacing the polluting units are unclear, calling for a clearly defined amount of carbon and oil power to be replaced in each country based on the specific ESEK.

It should also be borne in mind that countries such as Greece, which has chosen a very short path to de-ligation, cannot be punished.

Finally, the ESAI requests the adjustment of the limit for the recognition that a unit does not “significantly burden” the environmental goals and especially the mitigation of climate change (do not significant harm – climate change mitigation) to 450 gCO2 / kWh, in order to occupy realistic levels emissions and existing gas units, which are absolutely necessary for the system.