CHP Uptake and Potential

Because CHP is highly efficient some countries have very consciously espoused energy policies designed to promote its uptake. As a result 50% of all electricity in Denmark and about 40% in the Netherlands is produced from CHP. The EU average is around 10%. In Ireland CHP represents less than 3% of all electricity generated and the figure is even lower in Northern Ireland. This is a figure that requires an explanation

Sustainable Energy Ireland (formerly the Irish Energy Centre) produced a report in December 2001 which examined the reasons for comparatively low uptake of CHP in Ireland. “An Examination of the Future Potential of CHP in Ireland” concluded that a range of significant barriers existed which would have to be overcome if CHP deployment was to be increased (see Appendix I). The report also estimated that the market potential for CHP (Republic of Ireland) was 700MW (excluding major 300MW Aughinish Alumina project) against a current total installed capacity of 122MW.

In listing the barriers to CHP deployment there was relatively little emphasis placed by SEI on aspects of Ireland’s situation that might otherwise explain its comparative disadvantage against mainland Europe eg limited natural gas network or relatively small industrial base. Instead the SEI list emphasised problems associated with market structure, regulation and uncertainty, all matters substantially under policymakers control and many of which can be overcome by direct administrative action.

A CHP Association can help create the necessary will for such action.

As indicated above, CHP in Ireland lags way behind the European average (particularly Northern Ireland) and many ostensibly suitable sites have not been converted. It is clear also that CHP, despite its undisputed benefits, does not yet have the positive image of renewable energy or anything like the same sympathetic regulatory treatment.

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