Here are six reasons why cogeneration is an efficient way to power your organisation.
What is Cogeneration?
Cogeneration, also known as Combined Heat and Power, integrates the production of heat and power into a single, highly efficient process.
Watch the animation now: What is Combined Heat & Power?
During cogeneration, heat used in the generation of power is captured instead of floating away into the atmosphere. Once captured, heat from CHP systems can be used to meet energy demand for a variety of facilities, from industrial factories to government buildings to hospitals and leisure centres.
Find out more: Introducing combined heat and power
Cogeneration can slash one of your biggest fixed costs
Spending less on energy is one of the most effective ways to lower expenses.
Organisations using CHP can save between 15 and 40% of their electricity costs over power sourced from the grid and heat generated by on-site boilers.
- Sunderland Aquatics Centre operates CHP on a Discount Energy Purchase (DEP) scheme which has seen a huge reduction in primary energy costs, saving £31,548 per year.
- CHP is saving the Imperial London Hotels an estimated £40,000 per year, as well as approximately 800 tonnes of carbon.
- The CHP unit installed at Royal Shrewsbury Hospital has enabled it to save more than £780,000 a year.
Cogeneration can make you friends with Mother Nature
- CHP units typically provide a minimum of 10% reduction in carbon dioxide emissions, compared with carbon dioxide savings for good quality natural gas.
- Dairy products company Adams Foods has achieved carbon savings of 476 tonnes - the equivalent of planting 47,600 trees.
- Birmingham Heartlands hospital has cut emissions of CO2 by 5,600 tonnes per year thanks to CHP, which is equivalent to a forest of 560,000 trees.
Cogeneration can make your supply more secure
By enabling you to generate power independently, CHP helps you meet your energy demands and reduces your dependency on the grid. It can also help you to balance your energy demands and help you to avoid penalty payments for exceeding maximum agreed supply levels.
CHP systems can even be configured to continue operating in the event of a grid blackout.
Cogeneration will increase the resilience of your heating system
Buildings and Manufacturing Plants use boilers to provide hot water or steam for many different uses, from simple space heating in winter to complex process heating needs such as sterilisation. Installing a CHP plant will increase your capacity to generate heat and reduce your dependence on boilers. A CHP plant may even enable you to switch off your boiler plant altogether at certain times
Cogeneration increases primary fuel efficiency
On average the UK power system is about 35 to 40% efficient in the conversion of primary energy such as coal and gas into electrical energy delivered to our homes. Compare this with Cogeneration which converts 75% to 80% of fuel inputs, up to 90% in the most efficient plants, into useful energy.
Cogeneration is a dispatchable form of energy generation located at its point of use. That means you can choose when it will operate and turn it up or down, as required, without wasting energy in the distribution and transportation of electricity. Renewable forms of energy such as wind are non-dispatchable and are typically located remotely and, therefore. contribute to losses on the transmission and distribution network .
Find out more: Cogeneration and Renewables
Cogeneration can be funded in part through government schemes
You can be paid to save energy. The UK government offers several incentives to companies that install CHPs, including:
- EU Emissions Trading Scheme.
- CRC Energy Efficiency Scheme.
- Renewable Obligation Certificates (ROCs).
- Enhanced Capital Allowances.
- Renewable Heat Incentive (RHI).
- Climate Change Levy (CCL) exemption.
Discover the next steps you should take to reap the benefits of cogeneration. Get your free eGuide now: CHP, easy as 123: the journey to combined heat and power
Topics: CHP / Cogeneration