Your Complete Guide to CHP
In this guide you will find out what CHP is, how it works, and the environmental benefits it offers, as well as the advantage it can deliver and whether it could be a viable option for your organisation.
What is CHP?
CHP (Combined Heat and Power), also known as cogeneration, is a smart energy solution that provides an alternative to traditional methods.
It simultaneously generates electricity and captures the usable heat produced as a by-product. Think of it as getting two energy sources for the price of one! The recovered heat, which would usually be wasted to the atmosphere in conventional power generation, can be used for heating, hot water, and industrial processes.
Additionally, due to its versatility it can be used in a variety of applications, including in commercial buildings, hospitals, and industrial facilities.
How Does a CHP System Work?
If you are looking to implement a CHP system in your building, it is important to understand how it works.
Traditionally, power stations generate electricity from the combustion of fossil fuels, which results in wasted heat. A CHP unit generates electricity where it is needed and additionally gives the opportunity to use the excess heat for heating and hot water. CHP can be twice as efficient as traditional power stations, generating significant cost savings, reducing emissions and your carbon footprint.
CHP plants gain their high energy efficiency by capturing and utilising the heat that comes from the engine during electricity generation. By generating directly on your site, grid transmission losses are also avoided which increases the energy efficiency and lowers the carbon emissions.
The efficiency of this technology has a key economic benefit as it maximises the transformation of the fuel into energy for your site, meaning the costs are significantly reduced. Additionally, CHPs have an early payback against energy cost savings and they continue to save costs for the lifetime of the CHP unit, which can be 20 years or more.
Trigeneration - Efficient Electricity, Heating and Cooling
The process of cogeneration produces heat and power, however during the summer months, the heat generated by CHPs may not be fully utilised on site.
This is where trigeneration comes into the mix, which is the combination of cogeneration and absorption chilling. Trigeneration uses excess heat to operate an absorption chiller, providing cooling for air conditioning.
What are the Advantages of CHP?
CHP is an innovative and sustainable energy solution that offers numerous benefits to both industrial and commercial users including:
Increased Efficiency
Traditional energy systems generate electricity in one location and heat in another, often wasting up to 60% of the energy as heat. CHP captures this ‘waste’ heat and repurposes it, increasing energy efficiency to over 80%. By using CHP, businesses can significantly reduce their energy consumption, which ultimately leads to lower energy bills and cost savings.
Reduce Carbon Emissions
Another key benefit to CHP is its ability to reduce emissions. Due to CHPs being more efficient than traditional energy systems, they produce fewer greenhouse gas emissions per unit of energy generated. This makes CHP an excellent option to help businesses reach their Net Zero sustainability goals.
Improved Reliability and Energy Security
By generating their own electricity, businesses and households can reduce their dependence on the grid and avoid the risk of power outages. This is particularly beneficial for critical facilities such as hospitals, batch manufacturing processes and data centres, where an uninterrupted power supply is essential.
Flexibility
CHPs are flexible energy systems that can be tailored to various energy sources, including renewable energy sources. Operating a CHP can open up access to a range of Government-funded grants and contracts to support the balancing of the grid; it is possible that your site could receive payments for generating electricity when the wider grid is in short supply, further boosting the business case.
Financial Incentives and Support Schemes
Governments around the world have introduced incentives such as tax credits, grants and low-interest loans to promote the use of CHP, making it a financially attractive option for businesses.
CHP & Net Zero: Your Path to Sustainability
Veolia’s roadmap to Net Zero aligns with the UK’s decarbonisation pathways, supporting clients on every stage of their journey.
CHP is much more efficient than traditional power generation, which often wastes heat by simply releasing it into the atmosphere.
CHP can be a highly efficient and cost-effective way to generate electricity and heat. It can also help reduce greenhouse gas emissions and lower energy costs.
Combining CHP with other renewable energy sources like renewable biogas can reduce carbon emissions and help create a circular economy by repurposing waste. Additionally, pairing CHP with energy storage solutions like batteries can make it more flexible.
client retention rate - demonstrating our commitment to long-term partnerships
of all issues remotely resolved due to the advanced control systems and the highly experienced engineers working at Veolia’s Operational Performance Centre (OPC)
remote monitoring and rapid-response times
of our clients experiencing a major improvement in service quality compared to their previous CHP provider
Why Choose Veolia for CHP?
With 30+ years of experience in unbeatable CHP optimisation solutions and over 50 committed service engineers spread throughout the UK, Veolia’s CHP team has worked for decades to build up an efficient, compliant and reliable service that delivers high quality results.
What's not to like?
CHP for Every Sector
Public Sector
We can provide reliable and cost effective energy solutions across public sector organisations including hospitals and educational institutions. Helping to ensure cost-effectiveness and long-term carbon reductions. By addressing sustainability, we can give you a long-term way to manage your energy needs for the communities you serve.
Commercial and Industrial
Enhance competitiveness through efficiency by reducing energy bills with CHP. We provide efficient low carbon heat and electricity for a wide range of businesses including industrial, leisure, hotels, retailers, water and logistics businesses. Consistent and stable electricity and heat supply ensures sustainability and cost savings.
Embracing Hydrogen
Both public and private sector organisations are dealing with high energy prices. That’s why hydrogen-ready CHPs are a great cost effective way to move towards Net Zero. All our CHPs are hydrogen-ready, that can be utilised to reduce your carbon emissions.
Total Fitness
Veolia's CHP Success Stories:
Total Fitness
“The continuing strong focus Total Fitness has on CHPs is completely in line with our greener approach and the culture of energy conservation. We continue to look for alternative, sustainable ways of operating our buildings through various types of harnessing and re-utilising heat and the Veolia CHPs do just that.”
Steve Kear, Group Operations Director, Total Fitness Ltd
CHP Optimisation and Maintenance
Did you know, most CHP units have a minimum lifecycle of 10-15 years, meaning you can significantly reduce energy costs over this period?
However, inadequate maintenance of your CHP can severely impact your output and profitability. It can also significantly reduce your system’s lifespan leading to costly premature replacement.
Unlock savings, green energy strategy, and maximise your CHP performance with Veolia’s expert optimisation and maintenance services. We always look after the CHPs that we install ourselves, and we can also take over the maintenance of systems installed by others.
With decades of experience across diverse sectors and CHP sizes, we deliver results.
Contact our CHP team directly to find out more about how we can help you maximise your CHP's potential.