Combined Heat and Power

Combined Heat and Power (CHP) is the simultaneous generation of electricity and heat.

CHP uses a prime mover such as a gas turbine or gas engine to generate electricity in combination with a heat recovery boiler which converts hot exhaust gases into useful energy in the form of steam or hot water.

If an absorption chiller is included in the CHP plant specification, supplementary hot water can also be generated from the turbine/engine cooling system, which can be used to generate cooling water for air conditioning.

To be exempt from Climate Change Levy, and in some instances to achieve planning consent, the plant will need to meet the Government's criteria for Good Quality CHP by achieving a CHP Quality Index for both design and operation. This in effect means that the CHP plant must have an overall efficiency of at least 70%.

To be financially viable the ratio of fuel price to electricity price must be at least 3:1. To calculate this ratio simply divide the delivered electricity price in p/kWh by the delivered gas price in p/kWh.

Companies with an electricity price to gas price ratio of >3:1 and potential CHP plant efficiency of >70% should make significant savings from CHP.

At IPS, we will undertake an initial assessment of the potential benefits of CHP free of charge and without obligation.