The UK CHP Market Is Set To Grow
Combined Heat and Power (CHP), also known as cogeneration, is the technology which combines heat and electricity in a single process. According to the latest figures by Mordor Intelligence, the UK CHP market continues to grow and has an approximate value of $63.3 billion.
The reasons for the growth is clear when looking at the data from power generation specialists Edina, which suggest that some business sites have seen a 30-40% cost saving compared to grid supplied power and heat from boilers.
However, the cost benefits are not the only factor to consider, cogeneration can boost energy resilience and sustainability by providing an off-grid power supply. Offering the potential safeguard and security needed, as growing concerns rise due to supply disruption. Additionally, there is evidence to show that this simultaneous process may reduce carbon emissions by up to 30%, compared to a more traditional grid supplied electricity.
The United Kingdom has almost 3000 CHP sites with a steady progression of year on year investment and output. However the UK’s ratio of CHP output as a contributor is significantly behind that of Europe. Currently 15% of all EU heat is via CHP, 850TWh, with a forecast change of approximately 50% increase to 1,264 TWh by 2030. The EU CHP roadmap anticipates approximately 20% of all EU electricity generation can be sourced from renewable fuel mix in CHP.
The UK can potentially rapidly advance its CHP power generation while delivering on its CO2 commitments. Leading UK companies such as Clarke Energy are setting the standard for rapid implementation of energy efficient installations across sectors such as pharmaceutical, industrial, education and food & beverage.
With further Government incentives and investment schemes, such as Enhanced Capital Allowances and the Super Deduction and Special Rate Corporation Tax schemes for post covid recovery, the UK market seems well placed for further growth in CHP facilities.