THE FUNDAMENTAL TRUTH ABOUT CHP:

1. CHP burns fuel ONCE to produce electricity AND useful heat SIMULTANEOUSLY

2. The Government's allocation method (1/3 heat, 2/3 electricity) is an ACCOUNTING CONVENTION

  •    It exists for emissions reporting and tax calculations
  •    It does NOT represent actual fuel division (which is impossible)

3. The REAL benefit is THERMODYNAMIC:

  •    CHP typically achieves 80-90% overall efficiency
  •    Separate generation (grid + boiler) achieves ~55-60% combined efficiency
  •    This means ~30-40% LESS PRIMARY FUEL for the same useful energy

4. For UK CHP in 2024:

  •    Total fuel input: ~60,000 GWh
  •    Total useful output: ~49,000 GWh (electricity + heat)
  •    Overall efficiency: ~82%
  •    Primary energy saved: ~20,000 GWh compared to separate generation
  •    CO2 avoided: ~3-4 million tonnes annually

5. RECOMMENDATION: Present CHP benefits as:

  •    Overall system efficiency (heat + power / fuel input)
  •    Primary energy savings vs counterfactual
  •    Absolute fuel and CO2 reductions
  •    NOT as arbitrary fuel 'allocation' between outputs

This gives engineers, building owners, and policymakers the honest picture they need to make informed decisions about distributed energy systems.

Page 1 UK CHP Performance -

Analysing DUKES data and ignoring the allocations for tax and emissions accounting [give me strength!!]

ACTUAL SYSTEM EFFICIENCY
Overall CHP Efficiency (%) 81.44 Total useful energy out / fuel energy in
Electrical Efficiency (%) 36.45 Electricity out / fuel in
Heat Recovery Efficiency (%) 44.98 Heat out / fuel in
COUNTERFACTUAL: SEPARATE GENERATION
If the same electricity and heat were generated separately:
Reference Assumptions:
Grid Power Station Efficiency (%) 45 CCGT efficiency (typical UK grid)
Grid Transmission & Distribution Losses (%) 8 UK grid average losses
Conventional Boiler Efficiency (%) 85 Modern gas boiler efficiency
Fuel Required for Separate Generation:
Fuel for Grid Electricity (GWh) 52,657.00 Accounts for generation efficiency AND grid losses
Fuel for Boiler Heat (GWh) 31,647.06 Heat output / boiler efficiency
Total Fuel for Separate Generation (GWh) 84,304.06
PRIMARY ENERGY SAVINGS
Absolute Fuel Saving (GWh) 24,504.06 THIS IS THE REAL BENEFIT
Percentage Fuel Saving (%) 29.07
Fuel Saving per MWh CHP Output 0.50 MWh saved per MWh useful output
CO2 EMISSIONS IMPACT
Natural Gas CO2 Factor (kgCO2/kWh) 0.184 GCV basis - from UK GHG factors
CO2 from CHP Generation (ktCO2) 11.00
CO2 from Separate Generation (ktCO2) 15.51
CO2 Emissions Avoided (ktCO2) 4.509 REAL CO2 BENEFIT

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