Combined Heat & Power
TECHNOLOGY
How they work
Commercial Combined Heat and Power (CHP) systems simultaneously generate on-site electricity and capture usable thermal energy from a single fuel source. By recovering heat that would otherwise be wasted, these systems can achieve efficiencies of up to 90% – significantly reducing energy costs and carbon emissions compared to conventional separate heat and power generation.
Traditional power generation wastes approximately 60% of fuels energy as heat released into the atmosphere. CHP systems turn this inefficiency into an advantage by capturing the heat during electricity production.
Electricity generation
An engine or turbine – powered by natural gas, biomass, or renewable fuels – drives a generator to produce electricity on-site.
Heat recovery
Heat exchangers capture thermal energy from engine exhausts and cooling systems, providing space heating, hot water, or process steam.
Trigeneration (CCHP)
In some installations, recovered heat can be routed through an absorption chiller to produce chilled water for air conditioning or industrial refrigeration - generating cooling, heat, and power from a single system.
heat and electricity
Where CHP works best
CHP delivers the greatest returns where there is consistent, simultaneous demand for both electricity and heat. Common applications include:
- Hospitals and healthcare: Healthcare sites operating around the clock have continuous demand for hot water, space heating, and uninterrupted power - making them strong candidates for CHP.
- Hotels and leisure centres: High hot water loads and extensive heating requirements mean CHP can run at near-constant output, maximising efficiency and return.
- Universities and campuses: Educational or corporate campuses with district heating networks benefit from centralised CHP energy centres supplying multiple buildings.
- Data centres and office buildings: Trigeneration allows data centres to power operations while converting waste heat into chilled water for server cooling.
- Manufacturing and industrial plants: Facilities with steady process steam or high-grade heat requirements alongside continuous electrical loads typically see the fastest payback.
reduced energy costs
Benefits
- Cost savings: By supplying on-site electricity alongside recovered thermal energy, a correctly sized CHP system can deliver substantial reductions in overall energy costs.
- Enhanced resilience: CHP acts as an independent on-site energy source, allowing critical systems to operate during grid outages - particularly important for businesses where uninterrupted supply is essential.
- Lower carbon footprint: Because less total fuel is needed to meet a facility's energy demands, CHP reduces greenhouse gas emissions and supports net-zero and ESG targets.
assessment
What to consider
CHP works best when there is a reliable, consistent base load demand for both heat and electricity throughout the day and year. Sites with highly variable or seasonal demand may not achieve the same returns.
Fuel type, system sizing, and grid connection arrangements all affect performance and payback – which is where an independent assessment is particularly valuable.
For reference, the UK Government publishes official guidance on CHP environmental and operational standards.
energy strategy
Is CHP right for your business
CHP tends to suit businesses with high, consistent energy demand around the clock - where the system can run efficiently rather than cycling on and off.
We review your energy usage patterns, evaluate the costs involved, and model what CHP could realistically deliver for your site – including projected savings, payback period, and how it fits alongside any other technologies under consideration.