The suitability of CHP for a particular process or application requires a detailed appraisal of heat and electricity requirements, along with other factors. A feasibility study should be carried out on a site-by-site basis.
Installation
The key factors in the decision to install CHP include:
- Running time: in order to be cost effective the system ideally needs to run for a minimum of 4,500 hours/year.
- Total capital cost.
- The capital cost per kW of output.
- The ability to use the heat generated by the CHP system.
- Fuel price is critical to the economic viability of CHP.
- The relative price of the fuel used to the price of electricity and heat produced from other sources.
Considering installing CHP?
- CHP is worth considering at a time of reinvestment or process change. Typically the payback on investment in CHP is more than five years.
- Consider installing CHP when the current market conditions favour investment in CHP, and the opportunities offered by CHP become financially attractive.
Advice is available through the Combined Heat and Power Association.
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