Combined Heat and Power(CHP)

Costs and Output

 

Whilst the capital and installation costs of CHP are significantly higher than for conventional boiler plant, CHP can yield very considerable savings in running costs. In the right applications, it can provide economic returns on the investment. Typical installed capital costs per electrical unit output for small-scale packaged plant are shown below. This indicates that installed capital costs are more expensive per kW for smaller plant. Costs vary by installation, but a typical system for a small commercial premises will cost between £30,000 and £35,000 fully installed.

 

chp

 

Running costs

 

Fuel – is the main running cost. Most small-scale CHP installations in the UK run on natural gas, with a few running on diesel oil or biogas. Deregulation of the gas supply industry has enabled reductions in costs to be achieved by price negotiation. When agreeing on a supplier, consideration should be given to security of supply, length of contract and price. The likely future price of gas is a very important parameter as the economics of CHP are sensitive to changes in gas costs and particular consideration should be given to projected prices.

 

Maintenance

 

Maintenance is the other major operating cost. Good maintenance underpins economic outcome, maximising availability and minimising downtime. It is important to plan and carry out regular maintenance on CHP units to ensure they continue to operate correctly. Maintenance is nearly always contracted out to a specialist company, usually the CHP supplier itself.

 

Please feel free to get in contact with us by email or call 0845 189 9894 to discuss any of your requirements.