Advantages & Benefits of CHP

Advantages of CHP

CHP is first and foremost an energy efficiency technology. It provides a means to substantially reduce fuel, or ‘primary energy’, consumption without compromising the quality and reliability of the energy supply to consumers. Consequently it provides a cost-effective means of generating low-carbon or renewable energy.

The energy savings delivered by CHP are underpinned in law and through supporting regulations. The EU Cogeneration Directive defines CHP as delivering minimum levels of primary energy savings, with savings of 10% required for most CHP capacity. This legal requirement, which must be met to qualify for most forms of public support, is enacted in the UK through the CHP Quality Assurance (CHPQA) programme. Energy savings secured are however typically often far greater than this minimum threshold.

The efficiency benefits of CHP go on to provide a range of wider advantages. Delivering the same energy more efficiently, using less fuel in the process reduces energy costs, enhances security of our energy supply and helps mitigate our dependence on imported fuels.

As we move towards a lower-carbon future CHP also presents the opportunity to secure cost-effective reductions in CO2 emissions. The scale and cost of these savings will of course vary with respect to the scale, fuel and type of CHP plant, and in relation to the benchmark that is being used for comparison. But the proven potential is substantial.

Today’s CHP systems are based predominantly upon existing, proven power generation technologies: steam turbines, gas turbines and reciprocating engines used the world over to generate energy. This use and adaptation of existing technology not only contributes to the relatively low cost of CHP, but also ensures that it is a proven and reliable technology, capable of delivering an immediate impact in transforming our energy system.

Benefits of CHP

CHP provides the following direct benefits:

• minimum 10% energy savings, but typical markedly higher
• cost savings of between 15% and 40% over electricity sourced from the grid and heat generated by on-site boilers
• minimum 10% CO2 savings for good quality natural gas CHP in comparison to conventional forms of energy generation
• high overall efficiency – up to 80% or more at the point of use
• additional guarantee of continuity in energy supplies for operator & consumer
• proven and reliable technology with established supplier base

These in turn deliver a range of beneficial outcomes:

• a reduction in the cost of energy, improving the competitiveness of industry and business, helping alleviate fuel poverty and lowering cost in delivery of public services
• enhanced security of supply, making energy go further, through more efficient use of fuel – regardless of whether the fuel is renewable or fossil
• increased flexibility and reliability of energy supply, both nationally and locally – as CHP can complement and enhance other forms of energy generation
• flexible and responsive heat supplies – the thermal energy (heat or cooling) produced by CHP can be easily stored and later delivered to meet demand
• reduced overall demand from centralised, such as large scale coal or gas fired power stations – thus reducing stress on the electricity grid