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edie explains: Combined Heat and Power (CHP)

Centrica Business Solutions has partnered with edie to publish their latest 'explains' report: Combined heat and power (CHP)

The urgent need to combat rising energy costs, increase energy resilience, and improve sustainability are making the business case for installing Combined Heat and Power (CHP) more convincing than ever before. 

We have partnered with edie to publish a new guide to CHP that covers everything energy and sustainability managers need to know when considering how this on-site generation technology can contribute to their affordable, secure, low carbon energy strategy.

The detailed guide explains how CHP, or cogeneration, works and its environmental, financial and resiliency benefits. It includes information and top tips on calculating feasibility and how to select, specify and size systems to maximise efficiency and return on investment.

The financial costs and funding options are also covered, including 'off-balance-sheet' financing options, such as leasing. Various subsidies and tax incentives that apply to 'good quality' CHP are also explained, including Enhanced Capital Allowances, Contracts for Difference, and exemption from the Climate Change Levy.

CHP's increasingly important role in flexing energy demand is outlined, with an explanation of how organisations can use the technology to earn revenue via Demand Side Response (DSR) payments.

In his industry viewpoint published in the report, Ian Hopkins, Director of Centrica Business Solutions,  said: " By capturing the heat that is wasted in conventional power generation and using it onsite, CHP can achieve total efficiencies of 90% and cost savings of up to 40%. For suitable sites, with sufficient heat or cooling demand over an extended period, it  is hard to match. The strong financial case means that CHP can deliver a typical capital payback of 3-5 years on an asset with a life span of up to 15 years."

Centrica Business Solutions is an international market leader in CHP and designs and manufactures its bespoke, high efficiency systems in the UK.

Download the free report 'edie Explains: Combined Heat and Power'