How to switch to renewable energy

Advantages of Combined Heat and Power

Guide

Combined Heat and Power, or CHP, is a highly fuel-efficient means of generating electricity and useful heat in the same process. It is one of the most common forms of energy recovery.

High fuel efficiency means lower fuel bills and carbon savings compared to the separate generation of heat and power, for example within a boiler and central power station.

Advantages of CHP systems

There are several advantages of using Combined Heat and Power (CHP) to supply energy for your business. For example, CHP can help you to:

  • reduce your energy bills by up to 30 per cent
  • reduce your carbon emissions by up to 30 per cent
  • increase the security of your energy supply - as your power will be generated independently of the grid

CHP is also not restricted to new builds, as it can be installed on existing sites - eg during boiler room refurbishments.

One of the major benefits of using CHP systems can be a significant reduction in your business' energy bill. The amount you can save will depend on whether the CHP is custom-built or a packaged unit.

Schemes that have been certified under the UK CHP Quality Assurance programme as being highly efficient are termed 'Good Quality CHP schemes'. In recognition of the reduced carbon emissions such schemes provide, Good Quality CHP schemes are eligible for a number of incentives from the government.

Which business types can benefit from CHP systems?

Businesses that will benefit the most from using a CHP system are usually those with a constant heat demand, whether the heat is used as steam for industrial processes, hot water and space heating or used to supply cooling through absorption chillers. Examples can include:

  • the industrial sector - such as paper, chemical and food and drink businesses
  • hospitals
  • residential homes
  • office and tower blocks
  • leisure centres
  • universities
  • retail establishments
  • hotels
  • commercial greenhouses