Advantages of Combined Heat and Power
Combined Heat and Power(CHP) refers to the simultaneous generation of electricity and useful heat from the same original heat source, normally natural gas. A generator driven by a gas engine generates electricity but while doing so the engine radiator also produces heat that can be used directly for heating purposes. The capability to generate energy locally rather than in a remote power station, means there are no network transmission losses (normally charged at 9% for a low voltage site) and the heat by-product is effectively free, as the costs for CHP fuel and maintenance are generally fully covered by the electricity savings. A CHP plant offers particularly attractive paybacks when connected to a Low Voltage (400V) site, this is because between 8am and 11pm much higher electricity transportation charges and losses are added over and above charges to a Medium Voltage (10 or 20 kV) site.
For a detailed understanding on how this is achieved, please watch our video below.
When coupled with a SmartPower management system, paybacks of the order of 3 to 4 years are possible. e.g. € 350,000 capital cost, € 90,000 annual profit after gas and maintenance.