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Evaluation of cogeneration and small power production potential with packaged fuel cell power plants within EEC and EFTA countries

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The objective of this project was the assessment of European market potential for small-scale cogeneration with fuel cell power plants. The results identify the major incentives and obstacles to the commercial dissemination of fuel cell cogeneration power plants in Europe. This study forces fuel cell cogeneration systems producers to take into account the legislative demands in the design of fuel cell systems. Fuel cells are clean and efficient electricity generators, and are expected to be most cost-competitive for small-scale (below 2 MW) production where gas turbine systems are less cost efficient. Currently, power is generated on a large scale and in a centralised mode. However, decentralised electricity generation will inevitably grow in the future. For European legislators this report provides an insight into the bottlenecks that would impede the implementation of packaged fuel cell systems in Europe, with the possibility to overcome these bottlenecks by specified regulations. Another important aim of this study was determining realistic market entry prices for packaged fuel cell power plants based on the energy pricing infrastructure (natural gas and electricity) existing in December 1994 or later in the European Union and EFTA countries including special provisions for cogeneration power plant diffusion, wherever applicable.

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