Electricity production - Combined generation of heat and power (CHP)

The combined generation of heat and power (CHP) can help reduce fuel use and cut CO2 emissions in the energy sector.

CHP has been used for decades, and many of the technologies used are mature and proven. Still, today only 10% of global electricity production is from CHP, and this has changed little for years. It is receiving renewed attention as a cost-effective technology for climate change mitigation. European governments have developed strategies for increasing their share of CHP as part of wider energy and climate programmes. Power companies are also considering CHP again when developing new generation assets.

The role of CHP in a transition to a sustainable energy supply is not always clear-cut due to two unique characteristics:

• CHP is low carbon, but often still uses fossil fuels
  The CO2 benefits of CHP therefore shrink as the share of renewable sources in the energy sector increase.
• CHP links the power and heat sectors
  This can make it difficult to assess the best place of CHP in energy and climate policy. Should it be part of programmes for the electricity sector, together with other low-carbon generation? Or should it primarily be considered as a measure for supplying (industrial) heat efficiently? The best approach differs, depending on the structure and supply mix of the energy system.

These issues have given rise to complex questions about the place of CHP in low-carbon policies and business strategies. These are most prominent in two areas: emissions trading and increasing intermittency of power supply.

Role for ECN Policy Studies

The Netherlands has been at the forefront of CHP development since the 1980s, and the share of CHP in its power sector is one of the largest in the world. It has therefore featured prominently in ECN's research over the years. As a result ECN has developed strong research capability for CHP:

• ECN has analysed the economic viability of different CHP plants to inform the Dutch Ministry of Economic Affairs about the need for top-up tariffs for CHP electricity.
• ECN regularly assesses the role of CHP for meeting policy targets, such as energy savings and CO2 emissions reduction targets, in the Netherlands and elsewhere.
• CHP is fully integrated in ECN’s models for the electricity and heat sectors.
• Together with ECN’s technology research groups, Policy Studies regularly evaluates the performance and potential uptake of emerging CHP technologies, like micro-CHP.

More information

More information about the Save production model page can be found here.

Recent publications:

• Technische ondersteuning subsidieberekening SDE WKK 2010. November 2009 (in Dutch).
  Development of an explicit formula for and assessment of the subsidization of CHPs through SDE.
• WKK-potentieel in de chemische industrie. November 2009 (in Dutch).
  Assessment of CHP potential in the Chemical Industry.
• Eindadvies basisbedragen 2010. November 2009 (in Dutch).
  Cost assessment of renewable electricity production in the Netherlands as part of the SDE subsidy calculations.
• Fenix deliverable 3.3: Financial and socio-economic impacts of embracing the Fenix concept. October 2009.
  Assessment of the economic viability of the FENIX concept.
• CHP-GO implementation and their integration with other policies, including policy recommendations. September 2009.
  Overview of the current status of Guarantees of Origin (GO) for cogeneration (CHP).

 For more information please contact Sytze Dijkstra.