Combined Heat and Power (CHP)
Combined Heat and Power (CHP) sometimes known as Cogeneration is the use of a single piece of plant to generate both heat and electricity. In conventional power generation large quantities of energy in the form of heat are wasted. By using this technique, the total energy conversion efficiency can reach 90%.
Combining this with sustainable fuels such as Biomass and domestic Energy Saving measures, Community Heating Schemes can provide low cost heating that has a minimal carbon footprint. CHP is a key technology in the government’s drive away from centralized power generation towards distributed energy generation (see the DTI Energy Review 2006) and although not a renewable technology will continue to be supported as part of the Low Carbon Buildings Programme.
CHP plant is available in all capacities from large CHP plants where the electricity output feeds into the national network and the heat is used locally; through building or community sized CHP plants to Micro CHP that effectively replace the boiler of a single home.
Micro CHP is one of the supported technologies within the Low Carbon Buildings Programme providing grant aid for domestic installations. See our Grants page for details. Domestic CHP appliances qualify for a reduced rate of VAT, currently 5%.
The Government's Community Energy Programme has capital funding available for Local Authorities, Registered Social Landlords, Hospitals, Universities and other public sector organisations for the refurbishment of existing and installation of new community heating schemes. For further details visit the Energy Saving Trust website at www.est.org.uk/communityenergy.
Commercial CHP schemes qualify for the tax advantages in the Enhanced Capital Allowances Scheme and for unsecured interest-free Energy-Efficiency loans of up to £100,000. See our Grants page for details.
The Combined Heat and Power Association www.chpa.co.uk
The CHP Club www.chpclub.com