Step by Step CHP: Project Feasibility Flowchart

Posted by Ian Hopkins on 30-Sep-2014 10:00:00

Our flowchart will show you whether or not your project is feasible.

step by step chp gif

1. Before you do anything - save some energy

Boiling hot?

Upgrading your boiler or boiler controls can improve efficiency and could cut your bills by 30%.

Wrap it up

75% of an industrial building’s heat could be lost through building fabric.

Lower the lights

Using LED lamps can lead to energy savings of 25-80%.

House of correction

Using a variable speed drive to slow down a pump motor by 20% can reduce energy use by half.


2. Eyes on the size        

Poor sizing can wipe out any potential gains from a CHP.

Calculate the ratio of heat and power demand:

  • Morning and night
  • Weekday and weekend
  • Summer and winter

And all times in between – ideally on an hourly basis.

Size the plant so the vast majority of heat is used.

To be economical, CHP needs 5000 hours a year constant heat demand.


3. Watt does the future hold?

Future energy demand?

Changes to the business?

Sell excess power through the grid?

Sell excess heat into a local heat network?


4. The perfect fit?

Consider the following practicalities of installation:

  • Gas connection
  • Grid connection
  • Heat connection & dissipation
  • Ventilation air supply
  • Exhaust system

Not forgetting:

  • Noise regulations
  • Planning consent


5. Fuel for thought

Natural gas - do you have it?

Remember you may need increased capacity and pressure.


6. The business end

How do you get the best out of the CHP?

Operations: Monitor site demand and utility costs (is it cheaper to buy in power and use a boiler, say, at night?)

Maintenance: Pay an expert to guarantee your uptime and protect your asset.


7. Money matters

Financing is a choice between owning the CHP to keep all the profit but taking all the risk.

Or you can lease it to lose the risk, but forego some of the profit.


8. Get the credit

Good Quality CHP accreditation – essential for valuable incentives.


9. Incentives

Tax deductions and rewards for renewable CHP include:

  • Enhanced Capital Allowances (ECA)
  • Business Rates Exemption                
  • Renewable Obligation Certificates (ROCs)
  • Renewable Heat Incentive (RHI)
  • Feed-In Tariffs (FITs)

Now that you’ve discovered how feasible your project is, discover how to identify your capital cost by downloading our free eGuide: Calculating CHP: A guide to capital costs


Topics: Energy Management, CHP / Cogeneration

Ian Hopkins

Ian Hopkins is a technical sales professional and business leader with more than 15 years’ experience in delivering energy efficiency projects and strategy in Europe and the United States. Ian currently heads up the Sales and Marketing function as one of the board directors at ENER-G Combined Power Ltd.