EU CHP Roadmap & Policy Report

The CODE2 project produced a final European Cogeneration Roadmap that will contribute to realise Europe´s energy efficiency potential with a view to:

  • improving the effectiveness of new policy measures around CHP in Europe
  • completing documentation of CHP potential in Europe and encourage as standard practice the update of the assessed potential
  • realising Europe´s CHP potential for 2020-2030 in a timely way

The CODE2 European Cogeneration Roadmap estimates that in 2030 CHP could generate 20% of the EU’s electricity highly efficiently on a range of increasingly renewable fuels. 15% of the EU’s heat today comes from CHP[1] (850 TWh). The CODE 2 project estimates that this heat volume will increase by around half to 1,264 TWh in 2030. The CHP Roadmap projections estimate that new and upgraded CHP capacity beyond 2012 would further reduce total inland energy consumption by 870 TWh and additionally reduce CO2 emissions by 350 Mt in 2030[2].

The project also issued an European Policy Report which targets policy-makers with recommendations on how to improve the policy framework, market conditions and awareness for cogeneration in European industries.

CHP vs. separate production picture

CHP primary energy savings vs. separate production of heat and electricity

The CODE 2 project has identified four major barriers to the wider uptake of CHP:

  • Currently heat and power markets do not consistently reward CHP operators for the system-level energy savings made;
  • Barriers to entry persist for distributed generators;
  • Regulatory and legislative uncertainty add significant risk and cost to new investments, and;
  • A lack of adequate focus on primary energy savings and heat in EU energy efficiency policy risks moving CHP to the margins of policy action.


[1] Source: EEA based on Eurostat

[2] The entire CHP fleet could deliver in 2030 total primary energy savings and CO2 reductions of around 1,700 TWh and 685 Mt of CO2. For a detailed account of the “substitution methodology” used to estimate these figures, please see Annex I.