Combined Heat and Power (CHP)

What is Combined Heat and Power?

What is Combined Heat and Power (CHP)?

CHP simultaneously generates electricity and heat from the same source.

CHP, sometimes known as co-generation, enables the generation of heat (hot water or steam) and electricity in one process and from one fuel source. It is a highly efficient process leading to significant savings in both electricity and heating costs.

One of the features of electricity generation and transmission is that the further the consumer is away from the generator, the less electricity reaches the site. This is due to ‘line losses’ on the national grid. The activity of generating electricity almost always produces heat as a by-product. The source of the generation is generally many miles distant, and the heat is normally vented to the air.

This leads to a vast amount of energy being wasted, both at the point of generation in the power station and then during transmission to your business. Some estimates place this system efficiency as low as 30%. On-site co-generation greatly increases the efficiency of the energy production process and thereby lowers the combined carbon footprint and reduces your reliance on expensive ‘dirty’ electricity from the national grid.

Over recent years, the development of high-efficiency, purpose built, gas-fueled generator sets have changed the dynamics of this equation providing the possibility of placing a gas-fired generator set onsite and generating your own power. You can benefit from much reduced electricity costs and the captured heat is used for heating and hot water or other uses such as steam.

The good news is that for small to medium enterprise (SME) applications, micro CHP does much the same as larger scale CHP models but on a reduced scale.

Generate electricity while making heat

Whilst the CHP is generating heat it will also generate electricity to be used in your business, stored in a battery, or exported to the grid.

Cut your carbon footprint

By generating electricity on-site, you could be saving carbon dioxide compared with using grid electricity and a standard heating boiler.

Easy installation

There is no great difference between a micro-CHP installation and a standard boiler. If you already have a conventional boiler installation, a micro-CHP unit should be able to replace it at roughly the same size.

Standard maintenance

Servicing costs and maintenance should be similar to a standard boiler, although a specialist will be required.

Fully Renewable and Sustainable

Using biogas, to fuel CHP units it is possible create a fully renewable hat and power system.

Design, supply and optimisation of on-site CHP ‘gas fueled generation’

Combined Heat and Power generators have changed the landscape of the energy industry by reducing carbon and generating huge savings and/or income for their Owners. They utilise the cheaper cost of gas (typically 2 – 4 pence per kilowatt hour (kWh) to generate expensive electrical power (typically 12-18p/kWh).

The heat, which is usually lost at power stations, is recaptured and can be used for either the space heating or hot water requirements of the site, dramatically reducing energy costs, and can generate income. These are particularly useful in businesses with high hot water demand or year-round process heat requirement and can suit a wide range of commercial buildings.

What are the advantages of CHP? (UK government figures)

Combined Heat and Power (CHP) has been around for a long time, what is different now?

The Spark Spread.

The spark spread is the difference between the wholesale market price of electricity and its cost of production using natural gas.

Natural gas prices are low in comparison with electricity. There are abundant supplies and a high degree of competition in the market. In contrast, electricity prices continue to be impacted by non-commodity costs that, along with other non-energy costs, now form close to 65% of UK electricity bills. No matter how low commodity element of electricity prices goes, retail prices do not drop correspondingly.

This means it is now considerably cheaper to generate your own electricity than acquire it from the grid. By doing so, you eliminate and/or reduce many accompanying overheads such as transmission charges, losses, and capacity costs.

On site natural gas CHP plants convert natural gas as the primary energy source into electricity and heat. The energy is produced exactly where it is needed creating a highly efficient generation system. They provide a secure, cost effective energy supply, that is easy to maintain and manage.

Clean: On site energy generation using a natural gas generator (CHP)can save up to 40 percent in primary energy and produces up to 60 percent less CO2 emissions than conventional energy producers. The combustion of natural gas produces the lowest CO2 emissions compared to other fuels, as well as no soot emissions.

Combined Heat and Power (CHP) can also use biogas, making for a clean energy source.

Post Covid, businesses are looking at methods of reducing costs and increasing business resilience. Generating your own power and heat is a great first step. The design, supply, and installation of an optimal generation system to ensure maximum benefit to meet the requirements of your site.