For commercial and residential settings alike, upgrading heating and energy solutions provides a host of benefits. As of 2004, the EC has promoted combined heat and power solutions (CHP), in line with its efforts to reduce greenhouse gases and create a more sustainable working environment. Making conscious efforts to include more energy-efficient solutions in the commercial industry doesn’t just help to reduce outgoings. It also allows you to be more conscious of the impact you’re having on the environment and ensures a return on investment. Here at Energimizer, we have been supplying and supporting businesses in finding low carbon, sustainable and renewable energy solutions since 1998. And, in this guide, we’ll provide a comprehensive look at what CHP is and whether it’s the right solution for you.
What is CHP?
Combined Heat and Power (also known as CHP), is a modern technology designed to generate heat and capture the wasted heat. This is then converted into useful thermal energy which can be used to help heat and power a building efficiently. It is largely used in settings where both high levels of heat and power are needed at the same time. With nearly ⅔ of traditional energy lost via heat during traditional electricity, CHP systems help businesses to achieve efficiency levels of as high as 80%.
There are two main configurations for CHP systems – combustion turbine or steam boiler. Both options make use of various fuel types, including oil, biogas and natural gas to transform excess heat into steam and useful thermal energy. They do this through the use of heat recovery devices – a ventilation system that extracts the air so that it can be put to use. The additional energy produced can be used to heat rooms, assist with cooling devices, provide water and support commercial business processes.
Why is it popular?
Consistently growing demands means that the need for energy is always on the rise. Certain industries, such as the manufacturing sector or leisure industry, require consistent and reliable hot water and power to ensure they can run effectively. Without these, there is an increased risk on the quality of customer service, productivity and a businesses ability to run smoothly. As demand increases, so does the need for solutions that can keep costs down while providing the same exceptional service.
CHP systems help to make use of energy that would otherwise be lost to the atmosphere. By transforming heat into usable energy, you improve efficiency, reduce heating bills and create a more sustainable system within a commercial environment. If there’s one thing that every business needs to prioritise, it’s saving money. And combined heat and power systems are designed to help you do just this.
What are the benefits?
When we compare CHP to traditional systems, the key benefits include:
- Between 20 – 30% savings on energy costs per annum.
- An estimated 90% efficiency level, outweighing traditional systems by as much as 40%.
- Up to a 30% reduction in carbon emissions.
- Corporate exemption from the Climate Change Levy.
What industries is it suitable for?
Generally, industries that have high consumption levels of heat and energy tend to favor CHP systems as a means to manage cost and efficiency. These include businesses within the following markets:
- Food processing.
- Data centres.
- Oil & Gas.
- Property development.
What impact does it have on the Climate Control Levy?
Brought in to play in April 2001, the Climate Control Levy is an environmental tax placed upon businesses to help encourage them to make more environmentally-friendly measures. It is charged on the energy that businesses use and applies to all those in the industrial, public service, commercial and agricultural sectors. In 2021, the current CCL rate is 0.775 p/kwh in electricity and 0.465 p/kwh on gas.
Because of the way in which CHP systems re-use wasted energy and help to improve efficiency, natural gas solutions that qualify as ‘good quality’ under the CHPAQ (Combined Heat and Power Quality Assurance) as exempt from all CCL gas payments and can also achieve these savings across self-generated electricity use too. For large-scale businesses, this will result in significant financial savings over time, making the initial investment fees much more favourable.
Designing for a CHP unit
With any large-scale alteration to a businesses energy system, professional support is advisable during the design and construction of CHP units. There needs to be a clear understanding of the individual needs of a setting, including the connection to existing heating and power units as well as physical size and location availability. CHP boilers, for example, need to be sized appropriately to ensure they can achieve the high levels of efficiency promised and, on the other hand, to guarantee they can handle the large quantities of heat and energy required by a business.
Here at Energimizer, we have been working with businesses and industries across the board since 1998. Working in collaboration with KW Energie, based in Germany, we help businesses to find the right solutions to suit their budget and energy requirements. We focus on finding environmentally friendly and advanced combined heat and power systems that work within existing and new build projects. Systems such as these come in a variety of types, from packaged through to bespoke. Selecting the right one will ensure you achieve the expected savings per annum and ensure you reap the benefits of this new technology.
How Energimizer can help
Working alongside KW Energie in Germany and as a brand under the wind of Hevac Ltd, we have over 20 years of experience supporting businesses as they make sustainable and energy-saving changes. You can find out more about our services and products on the website or contact us today to organise a site visit for your location.