Combined heat and power

The right agreement pays financial dividends

With conventional electricity generation methods, around two thirds of heat is wasted, and overall efficiency is 40-50%. But Combined Heat and Power (CHP) plant can be a highly efficient. CHP re-uses the heat so it’s over 90% efficient at the point of use, making this an option for on-site heat and power. This approach can provide exemptions from the Climate Change Levy (CCL), the tax on large consumers of fuel, in the form of Levy Exemption Certificates.

Agreement types

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 with power from the grid. Any CHP oversupply can flow 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 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 interface with the local supply network.

It’s our job to explain the choices to help you increase efficiency and reduce your overall bill.