Making the business case for CHP on the road to electrification

2 min read published on May 8, 2024

There’s no doubt that the UK has serious ambition when it comes to clean energy. We are aiming for 50GW of offshore wind capacity and 70GW of solar capacity by 2030, according to the 2022 Energy Security Strategy. But are we on track to reach our targets?

Various setbacks have slowed progress on the road to net zero. In autumn 2023 the Contracts for Difference system experienced an embarrassing failure when it received no bids at all for new offshore wind. The government scrambled to tweak the system to encourage new investment, but there were more problems to come. Experts warned in March that a reduction in steel production could jeopardise the delivery of wind infrastructure. And now the government’s own analysis finds that supply chain issues could also lead to missed targets. Solar has similar supply issues (long lead times for crucial equipment) as well as an ongoing issue with delays in grid connections.

Gas is far from gone

The overall picture is one of multiple problems combining to delay the decarbonisation of the grid. Although April 2024 saw a record low in the share of electricity from fossil fuel sources, the long-term pattern is for roughly 40% of electricity to come from renewables. Meanwhile, gas remains the biggest single source of power in the grid, with a share varying between roughly 25% and 40%.

Here is where the headlines about the renewable revolution can be misleading. Many high-volume energy users feel under pressure to electrify their heating and hot water systems as part of going green. They may be turning away from gas-powered CHP systems in an effort to get away from fossil fuels.

What they don’t realise is that a gas-powered CHP system could actually mean lower fossil fuel consumption than electrified heating.

If you work in the CHP industry, you will know that they are highly efficient. Burning gas on site and using it directly minimises energy and heat waste. Whereas using grid electricity for heating and hot water often means burning gas in a power station, converting it to electricity then sending it along the transmission and distribution networks to your site. There is wastage every step of the way.

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The key to cleaner CHP

On the other hand, there are days when the mix of renewables in the grid is high and electricity is truly the greener option. No wonder your potential customers are confused. But you can help them make the right decarbonisation decisions with your secret weapon: the Carbon Monitor. This takes away the uncertainty over relative emissions by actually measuring them. It delivers you half-hourly data on exactly what greenhouse gas emissions any given CHP system is producing. It also delivers the same data about the grid serving the site. This means you can make a true comparison of the CHP versus the grid.

The data from the Carbon Monitor allows organisations that already have a CHP system to adjust their usage patterns in line with the carbon intensity of the grid. Without changing anything about what they have installed, they can drastically cut the emissions from their CHP system.

The same data can also help high-volume users make the big long-term decisions about how to meet their heating and hot water needs. Having the actual numbers makes it easier to reject the misconceptions about CHP and find a solution that really works for them. For a trial of the CHP Carbon Monitor, get in touch.

 

Picture of Jaron Reddy - Business Lead UK

Published May 8, 2024

Jaron Reddy - Business Lead UK