What is Combined Heat and Power?

In typical conventional power generation, much of the total energy input is wasted. Combined Heat and Power (CHP), or co-generation (sometimes referred to as ‘total energy’), where the heat produced in electricity generation is put to good use, can reach efficiencies in excess of 85%. CHP can provide a secure and highly efficient method of generating eletricity and heat at the point of use. Due to utilisation of heat from electricity generation and the avoidance of transmission losses because electricity is generated on site, CHP achieves a significant reduction in primary energy usage compared with power stations and heat only boilers. Typically a good CHP scheme can deliver an increase of 20% / 25% in efficiency against the separate energy system it replaces.

By recovering the majority of what would otherwise be waste heat, overall energy savings of between 20 per cent and 40 per cent may be achieved. For an energy intensive business this can represent a very substantial saving. Combined with other energy efficiency measures CHP can deliver even greater cost savings for customers. Applications that are generally suitable for CHP or co-generation include hotels, hospitals, industrial processes and commercial buildings, where a continuous demand for both heat and power exists. The installation of CHP has been widely recognised as a key measure to help reduce harmful emissions of carbon dioxide, the main greenhouse gas, while delivering the same amount of useful energy. It is estimated that for every 1 MW of CHP installed, CO2 emissions are reduced by at least 1,000 tonnes per annum.

On balance, co-generation can result in savings of up to 50 per cent of CO2 emissions compared with conventional sources of heat and power. Reduced emissions of sulphur dioxide and particulates are further benefits. The energy efficiency of CHP is recognised throughout the energy world. However, many commentators feel that if the full economic and environmental benefits were fully valued in Ireland in terms of market structures and regulation, then the CHP sector would develop more rapidly. There are few solutions that offer, simultaneously, a cleaner lower carbon environment as well as lower costs. Surely an attractive option worth considering by everyone in business.

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© Irish CHP Association. Last Updated: Fri 13 May 2005.