Combined Heat and Power (CHP)

What is Combined Heat and Power (CHP)?

A Combined Heat and Power (CHP) system, also known as cogeneration, is a highly efficient energy technology that simultaneously generates electricity and useful heat from a single fuel source. CHP systems are designed to capture and utilise the waste heat produced during electricity generation, which would otherwise be wasted in conventional power plants.


By capturing and utilising the waste heat, CHP systems can achieve overall efficiencies of up to 80% or more, compared to around 40% efficiency for separate production of electricity and heat. This efficiency improvement can lead to lower fuel consumption and, consequently, reduced greenhouse gas emissions, helping to mitigate the environmental impact of energy generation.

The Benefits of Combined Heat and Power (CHP)

Reduced Energy Costs

CHP can help businesses reduce energy costs by simultaneously generating electricity and useful heat from a single fuel source, maximising the overall energy efficiency.

Working Towards Net-Zero

By maximising energy efficiency and utilising cleaner fuel options, CHP systems can contribute to the overall goal of achieving net-zero emissions for businesses.


In the event of grid outages, CHP systems can continue to provide electricity and heat, resulting in uninterrupted operations and increased resilience.

Green Credentials

Demonstrate a commitment to sustainability and environmental responsibility, which can positively impact the business's reputation.

Reduce Waste

Minimise the amount of energy wasted by utilising the waste heat generated during electricity production for heating or other industrial processes.

Energy Efficiency

CHP has a higher overall efficiency compared to separate electricity generation and heat production systems, thereby improving energy efficiency.

Who can implement CHP?

CHP systems find application in various sectors, including industrial facilities, commercial buildings, district heating systems, and institutional campuses. They often provide a reliable and cost-effective solution for meeting both electricity and thermal energy demands, offering potential energy cost savings, enhanced energy security, and a reduced reliance on the grid.

a huge natural gas engine works in a combined heat and power plant and supplies a district with heat

Installation and Process

CHP requires an initial investigation/feasibility study regarding your current onsite usage, and how you currently use electricity, gas, and heat within the business to understand whether CHP is the best route for the business to take. If it is suitable for your business, you will have access to bespoke designs, specific to your site and usage. The proposal you would receive not only displays how much the installation would cost self-funded, but also shows how the installation would look on the site, and how long it would take to have a return on investment in a detailed analysis.



Alternative to the self-funded projects, which can be quite expensive depending on installation size, the Power Purchasing Agreement option allows you to access electricity unit rates per kWh up to and over a third of the cost from national grid suppliers; which is expected to keep rising. With the PPA, all maintenance, cleaning and up-keep of the installation is included within the agreement throughout the full term.

Did You Know...

The ancient Romans used a form of CHP called a hypocaust system, where they would circulate hot air from a furnace beneath the floors and walls of buildings to provide both warmth and cooking heat.

Unsure if CHP is the most suitable solution for your business?

Our Renewables Specialists are always happy to help.

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