Key Benefits:
Publics concerned: petitioners and operators of facilities classified for the protection of the environment of a total thermal power greater than 20 MW generating unvalued fatal heat, classified energy production facilities more than 20 MW in a network of heat or cold, managers and owners of heat or cold networks.
Subject: content of the cost-benefit analysis to assess the opportunity to value fatal heat through a network of heat or cold, categories of facilities targeted and implementation of cost-effective solutions.
Entry into force: the text comes into force on January 1, 2015.
Notice: This Order is intended to transpose sections 14.5 to 14.8 as well as annex IX to Directive 2012/27/EU on energy efficiency, which imposes on industrial installations generating unvalued fatal heat and energy production facilities in heat or cold networks, with a total thermal power greater than 20 MW, the realization of a cost-benefit analysis when it comes to new installations and renovations. This analysis allows an industrial assessment of the cost-effectiveness of the recovery of fatal heat (i.e., recoverable heat) through a connection to a heat or cold network and is accompanied by the implementation of solutions deemed cost-effective. For an energy production facility that is part of a heat or cold network, it is intended to identify potential fatal heat suppliers located near the network and to implement the solution deemed cost-effective. This text does not concern the case of a recovery of fatal in situ heat or a valuation between two neighbouring industrialists. The main sectors involved in this text include: energy, thermal waste treatment, chemistry, glass, metal processing, cement, lime, plaster, paper-carton, and agri-food.
References: the text can be found on the website Légifrance (http://www.legifrance.gouv.fr).
Minister of Ecology, Sustainable Development and Energy,
Having regard to Directive 2012/27/EU of the European Parliament and the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC, including Article 14 and Annex IX;
Vu le environmental codeincluding articles L. 512-5, R. 122-5 and R. 512-8;
Having regard to the advice of the Higher Council on Technological Risk Prevention of 25 November 2014;
Considering the advice of the National Standards Assessment Board dated 4 December 2014;
Considering the comments made at the public consultation held from October 23 to November 20, 2014 pursuant to theArticle L. 120-1 of the Environmental Code,
Stop it!
This Order sets out the modalities for carrying out the cost-benefit analysis referred to in IV of Article R. 512-8 of the Environmental Code as well as the categories of facilities referred to in IV of this same article and sets out the requirements applicable to them. These provisions apply without prejudice to other legislations as well as approved outlines, plans and other guidance and planning documents.
Are affected by a cost-benefit analysis to assess the opportunity to value fatal heat through a network of heat or cold:
1° Facilities with a total rated thermal power greater than 20 MW, subject to the regulatory regime for classified facilities, generating unvalued fatal heat;
2° Energy production facilities with a total rated thermal power of more than 20 MW, subject to the regulatory regime for classified facilities, forming part of a heat or cold network.
Electricity production facilities are exempt from a cost-benefit analysis.
The facilities that meet one of the following conditions are also exempted from a cost-benefit analysis:
- the release of unvalued fatal heat is at a temperature below 80 °C;
- the release of unvalued fatal heat is less than 10 GWh/year;
- the heat demand is more than 4 km from an installation with unvalued fatal heat discharges less than 50 GWh/year, more than 12 km from an installation with unvalued fatal heat discharges less than 250 GWh/year or more than 40 km from an installation with unvalued fatal heat discharges greater than 250 GWh/year.
The content of the cost-benefit analysis is the elements listed in the appendix to this Order.
When the cost-benefit analysis leads to the economic and financial analysis to a total of the expected benefits higher than the expected costs and that there are no compelling reasons of law, ownership or financial order by preventing it, the operator implements the recovery solution of fatal heat through a heat or cold network under the conditions of the cost-benefit analysis. In the event of a noticeable change in one of the parameters relating to the content of the cost-benefit analysis listed in the annexed table prior to the implementation of the connection, the operator updates the cost-benefit analysis and transmits it to the prefect.
Where there is an exemption based on compelling reasons of law, property or financial order, the exemption is expressly provided by the authorization order referred to in theArticle R. 512-28 of the Environmental Code. The Prefect informs the Director General of Energy and Climate of his decision motivated within the month following its adoption, for notification to the European Commission.
This Order comes into force on 1 January 2015.
The provisions of this Order apply to facilities whose application for authorization was filed after January 1, 2015 and to facilities subject to this date of a substantial amendment requiring the filing of a new application for authorization pursuant to section R. 512-33 of the Environmental Code and leading to a renovation that exceeds 50% of the investment cost for a new comparable thermal unit. A renovation that consists of the installation of carbon dioxide capture equipment for its geological storage is not considered a renovation within the meaning of this Order.
The Director General of Energy and Climate and the Director General of Risk Prevention are responsible for the execution of this Order, which will be published in the Official Journal of the French Republic.
Annex
CONTENTS OF ANALYSIS COSTS-AVANTAGES IN ARTICLE 4
The cost-benefit analysis includes:
- a description of the planned/renovated facility;
- a description of the solution valued the fatal heat;
- where applicable, a description of possible variants proposed by the operator;
- a proof of exchange between the manager and/or the network owner and the industrial installation source of fatal heat on the technical elements listed in the table below; in the event of a non-response from one of the three parties cited previously within a reasonable period of time, the applicant for authorization will justify the possible absence of this document;
- an economic analysis comprising a financial analysis reflecting the actual cash flows related to investment and their operation on the technical criteria listed in the table below:
| Technical specifications | Medium heat transport (hot water, steam...) | X | X |
| Total length of heat distribution infrastructure (km) | X | X | |
| Maximum heat demand power (MW) | X | X | |
| Annual amount of heat provided by the heat source to the user | X | X | |
| Network boiler efficiency | X | ||
| Fuel avoided (MWh) | X | ||
| Alternative scenarios studied | X | X | |
| Parameters Economic and Social Council | Actualization rate | X Fixed by arrest | X Fixed by arrest |
| Duration considered for economic analysis (years) | X Fixed by arrest | X Fixed by arrest | |
| Energy price | Fuel price (€/MWh) and annual inflation rate (%) | X Fixed by arrest | |
| Heat sales price (€/MWh) and annual inflation rate (%) | X | ||
| Heat purchase price (€/MWh) and annual inflation rate (%) | X | ||
| Costs | Investment for installation producing heat | X | X |
| Investment for heat distribution infrastructure | X | X | |
| Operating expenses for heat production facility | X | ||
| Operating expenditures for distribution infrastructure | X | X | |
| Annual operating expenses (%) | X Fixed by arrest | X Fixed by arrest | |
| Cost of purchasing heat (€) | X | ||
| Benefits | Fuel economy (€) | X | |
| Sale of heat (€) | X | ||
| Support levels (€) | X | X | |
| Externality | Valorisation of the price of the avoided CO2 ton (€) | X Fixed by arrest | X Fixed by arrest |
The values for cost-benefit analysis are as follows:
Actualization rate: 7.5%.
Duration considered for economic analysis: 20 years.
Annual inflation rate: 1%.
Fuel price: The operator will refer to the International Energy Agency (IEA) forecasts.
Valorisation of the price of the carbon dioxide ton avoided: the price of the CO2 ton will be fixed in accordance with the European Commission's EU trend 2050 scenario as recalled in the table below:
| 2015 | 5 € |
| 2020 | 10 € |
| 2025 | 14 € |
| 2030 | 35 € |
| 2035 | 57 € |
| 2040 | 78 € |
| 2050 | 100 € |
Between two dates of the table above, the price of the CO2 ton is fixed by linear interpolation.
A variation of the values used for the cost-benefit analysis set out above may be proposed if the applicant can demonstrate that an alternative assumption is appropriate in the case of its installation.
Done on 9 December 2014.
For the Minister and by delegation:
Head of the Climate and Energy Efficiency Service,
P. Dupuis
The Director General of Risk Prevention,
P. White
