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What is CHP?
Combined Heat and Power (CHP) is the simultaneous generation of usable heat and electricity in a single process. CHP is a proven technology and is widely used all over the world as an energy efficient solution. Europe currently produces 15%+ of its' total electricity production via CHP, with a target of 18% to be achieved by 2010.
When electricity is generated in a CHP unit, the heat by-product is recovered rather than wasted, and can therefore be used to deliver space heating or to produce hot water.
CHP is acknowledged as the single most efficient way of generating electricity and heat simultaneously. According to the European Commission for Energy and Transport, in some cases, over 90%, and often over 80%, of the energy source is converted to a usable output with CHP. In contrast, even the most modern separate production systems for electricity have an overall efficiency of 50-60%; more commonly efficiency is as low as 30-40%, since the heat produced is not used.
Because it is possible to install CHP units close to the actual consumption point, distribution losses can be minimised. This makes CHP even more energy efficient and therefore helps to reduce both greenhouse-gas emissions and fuel costs.