COMBINED HEAT & POWER
TAKING STEPS TO MAXIMISE CHP EFFICIENCY Hydrogen-ready CHP in production
heat-to-power ratio and associated energy costs.
• Electricity export may be a suitable method for dealing with excess electricity, but the financial implications must be calculated, including export tariffs and potential demand side response income.
• Variable demand – in cases where energy demand fluctuates, it may be better to use a number of smaller units, with one meeting baseline capacity and smaller plants providing excess needs.
3. Consider design practicalities & compliance Have you got sufficient space to install, operate and maintain your unit? If your plant room isn’t big enough, could you use roof space or an external container? How will you integrate the system with your
BEMS and power, cooling and heating systems, particularly secondary heat sources? Ventilation, noise and vibration insulation requirements should also be considered, along with other environmental impacts of your chosen location. Check what the regulatory needs are, for
Centrica Business Solutions’ Aaron Parker examines four
steps you can take to maximise efficiency and cost returns from your combined heat and power (CHP) project
M
ore and more organisations are tackling high energy prices and market uncertainty by using
hydrogen-ready combined heat and power (CHP) to relieve cost pressures and future-proof their sustainable energy needs. Currently, high efficiency CHP systems are reducing energy costs by as much as 40%, delivering a return on investment of less than 12 months for some projects. With careful project planning and by following
essential specification guidelines, a typical CHP unit can operate at high efficiency for 10-15 years, providing long term low energy costs and budget predictability. By selecting hydrogen- ready technologies, you can also prepare your pathway to Net Zero.
THE FOUR STEPS 1. Assess the feasibility CHP delivers best returns for sites with a large heating or cooling demand over an extended time period, so it’s important to calculate your energy profile. Use half-hourly data or Building Energy Management System (BEMS) recorded data for accuracy. Better still, use energy insights sensor technologies to provide complete visibility of your energy estate. For new build sites, Building Information Modelling (BIM) data can inform the process. Ideally, energy efficiency measures should
be introduced before CHP installation. If not, estimate the impact on future energy demand to specify a CHP system that is future-proofed. Factor in site expansion plans to understand your long-term energy profile. Initial suitability checks include assessing whether
the input fuel (i.e. natural gas/biogas, etc) is available for the site, and whether the local power network can support a CHP installation. You should also consider using hydrogen-ready CHP units in readiness for a Net Zero future.
www.essmag.co.uk
2. Get the sizing right Sizing is the most important factor in determining your CHP’s efficiency and ROI. If the plant is too small it will operate at full load, but won’t provide the full potential cost savings. If it’s too large it will operate uneconomically and inefficiently at part-load and struggle to yield the desired return on investment. Once you have a detailed model of heat and
electrical demand patterns, you are in a position to size the system based on the following options: • Baseline operation, which optimises CHP efficiency by ensuring the system meets baseline electrical or heat output. Any shortfall is then met by importing grid power or heat from boilers.
• Load following CHP units can change output to track fluctuations in either electrical or thermal demand, dependent on the site’s
example planning permission and building regulations, grid connection standards and your requirements under BREEAM. It’s essential to meet environmental standards, especially operating within NOx guidelines.
Hydrogen-ready CHP system
4. Work out the finances Factor in the likely ‘spark spread’ price advantage of a gas fired CHP unit; which, due to shifting your energy demand from more expensive electricity to cheaper gas, should provide savings. Investigate asset financing, such
as Centrica Business Solutions’ Discount Energy Purchase (DEP) option. This involves ‘leasing’ technology by purchasing the generated power at a lower cost than previous grid supplies. The heat is supplied free and all maintenance and servicing costs are covered. You should also review available
government benefits and incentive schemes, such as the partial exemption from Climate Change Levy via the Combined Heat and Power Quality Assurance (CHPQA) scheme. Make sure you include lifetime servicing and maintenance costs if these aren’t covered in asset finance.
Centrica Business Solutions
www.centricabusinesssolutions.com
Moy Park CHP installation by Centrica Business Solutions
ENERGY & SUSTAINABILITY SOLUTIONS - Summer 2023 17
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40
