Combined Heat & Power (CHP)
The right agreement pays financial dividends
When electricity is generated, around two thirds of heat is wasted when conventional methods are used, and overall efficiency is between 40-50%. The use of Combined Heat and Power (CHP) plants can dramatically improve the efficiency. CHP re-uses heat, making the system over 90% efficient at the point of use, making it an attractive option for supplying heat on-site. Furthermore, use of CHP can provide exemptions from the Climate Change Levy (CCL), which taxes large consumers of fuel in the form of Levy Exemption Certificates.
With an Embedded Generation Connection Agreement (EGCA), you sign up to generating a specified portion of energy needs through CHP and can synchronise power generated locally from the grid. Any CHP oversupply can be directed back to the national electricity grid, with the meter running backwards to offset the utility company’s bill. Through a Power Purchase Agreement (PPA), your commitment to CHP can help offset the green tax on energy, the Climate Change Levy (CCL) and also to raise finance for generation assets and plant such as photovoltaic and fuel cells.
We can also recommend the best approach, whether they be fixed, flexible or market linked prices. Parallel Running Agreements give you the ability to use power from CHP in parallel with power from the grid, with the ability to provide an interface to the local supply network.
To find out more about your options to increase your efficiency and reduce your overall bill, why not get in touch?
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Contact us today to find out how we can help you improve the use of energy at the properties you manage.