Applications

International Deployment Programs

South Korea

South Korea adopted a renewable portfolio standard (RPS)1 to promote clean energy, reduce carbon emissions, and develop a local green-industry to accelerate economic growth. The RPS is designed to increase renewable power generation to 10 percent of total power generation by 2024 from two percent in 2012 by requiring an additional one half of one percent of new & renewable power added annually from 2012 to 2019, increasing to one percent per annum through 2024. This equates to an estimated 350 MW annually through 2019, increasing to about 525 MW annually thereafter. Electric utilities and independent power producers that have in excess of 500 MW of power generation capacity are required to comply with the RPS.

Germany

There are a number of financial incentives in Germany for stationary fuel cell power plants operating on either clean natural gas or renewable biogas.  Combined heat and power (CHP) configurations receive additional incentives as the German government desires 25 percent of electricity generation to include CHP by 2020, up from the current level of 15 percent.  Germany uses a Feed-in Tariff as the foundational incentive program driving adoption of CHP, and the National Organization Hydrogen and Fuel Cell Technology (NOW) program as the lever that provides differentiation for fuel cells against conventional technology.

The German Combined Heat and Power Act (CHP) supports highly efficient stationary fuel cells configured for co-generation with a CHP bonus of Euro 5.41 cents/kWh for self-produced electricity and heat compared to no bonus for traditional CHP plants.  Projects with contracts executed in 2016 and operational by the end of 2017 are eligible for the CHP bonus for a period of ten years.   Websites:  CHP Co-generation law (in German language)  co-generation bonus (see page 16 for CHP bonus – in German language)

1An RPS is a mechanism designed to promote the adoption of renewable power generation. The RPS may be voluntary or mandated through legislation and generally places the obligation on the suppliers of electricity to generate a specified percentage of their electricity from renewable power sources. The purpose of an RPS is to provide a program that provides a competitive marketplace for providing renewable energy at the lowest possible cost while allowing clean renewable power to compete with cheaper but ‘dirtier’ fossil fuel power generation. An RPS may even be structured to promote economic growth through adoption of renewable power generation.
Fuel cells can play a role in meeting RPS clean power mandates by generating highly efficient, clean electricity continuously. Fuel cells operating on renewable biogas meet the requirements of typical RPS programs and many RPS programs include fuel cells operating on natural gas due to the near zero emissions and highly efficient power generation process of fuel cells.