CHP benefits ignored

London -Energy costs have risen by more than 100% in the past 12 months, while businesses are bracing themselves for the impact of new legislation such as the Carbon Reduction Commitment. Combined heat and power (CHP) – the simultaneous generation of electricity and useful heat that is almost twice as efficient as conventional power generation – could help businesses to fight back on both fronts.

However, Alan Barlow, managing director of ENER-G Combined Power, believes the focus has been diverted from tried-and-tested CHP by more glamorous new, and often unproven, renewable technologies. He believes CHP can reduce greenhouse emissions drastically by capturing the heat output that is wasted in conventional power generation.

“We need renewable generation, but in our race to meet targets we must not forget about those important technologies that help consumers cut their carbon output," said Barlow. "CHP electricity is around one third of the price charged by conventional UK suppliers and cuts carbon by around 20% yet out of all the members of the European Union the UK’s current CHP capacity is the fourth lowest.”

The forthcoming Carbon Reduction Commitment represents another huge challenge for organisations struggling to drive down costs. The mandatory ‘cap and trade’ system is designed to fill a gap in carbon abatement incentives for the public, commercial and industrial sectors.

“As a carbon-cutting technology with a formidable track record, CHP is a cost effective tool for managing the impact of the Carbon Reduction Commitment and organisations affected would be well-advised to give serious thought to installing a CHP system,” said Barlow.

The Government's target is to reach a UK CHP capacity of 10,000 MW by 2010. Latest official statistics show that every 1 MW of CHP operating in the UK helps reduce carbon emissions by between 510 and 760 tonnes every year.

“New power generating capacity which is not developed as a CHP plant represents a potential missed opportunity for carbon savings and energy conservation,” said Barlow. “Much is being made of the spiralling energy costs and lack of control, and yet CHP is often overlooked as the answer to these problems.”