Combined heat and power CHP
Combined heat and power (CHP), sometimes referred to as cogeneration, is a process in which the heat that is created as a by-product of power generation is captured and used rather than simply being wasted.
According to the Combined Heat and Power Association, “In today’s coal and gas fired power stations, up to two thirds of the overall energy consumed is lost in this way, often seen as a cloud of steam rising from cooling towers.”
Whilst there are a range of different forms of CHP, typically, a gas-powered turbine or reciprocating engine is used to produce electricity, and the heat recovered is used for local water or space heating, or to support an industrial process. Increasingly absorption cooling can use the heat recovered to produce cooling. Sometimes this process is referred to as trigeneration or combined cooling, heat and power (CCHP).
Alternative systems have heat generation as their primary function, and then use a steam turbine to generate electricity.
CHP as a process is not dependent on a specific fuel and so renewable fuels such as biomass feedstocks can be used.
Very broadly, CHP is appropriate in circumstances where there is a continuous local demand for heat and power, such as district heating schemes, hotels and leisure centres, industrial applications that require heat for manufacturing processes and so on. If excess electricity is generated, this can be exported back to the national grid.
The Department of Energy and Climate Change (DECC) lists the advantages of CHP as:
- An efficiency of over 80%, compared to 38% for a coal-fired power station.
- Up to 30% savings on energy bills.
- Up to 30% reduction in carbon emissions.
- Reduced transmission and distribution losses.
- Increased fuel supply security.
CHP can be a very significant investment and requires careful consideration. However, where they are certified as Good Quality (GQ) CHP, they are exempt from the Climate Change Levy for fuel inputs and electricity outputs. They may also qualify as Enhanced Capital Allowances (ECA) and be eligible for business rates exemption.
CHP plant can be manufactured as packaged units or can be custom designed and built. Increasingly, micro CHP units can be used to supply small-scale and domestic needs. In effect, these replace conventional boilers. Heat is the primary output of micro CHP, with the ratio of heat to electricity for domestic appliances typically around 6:1, generating up to 1kW of electricity. As with larger CHP plant, if excess electricity is generated, this can be exported back to the national grid. This may be eligible for Feed-in Tariffs in England and Wales and is considered an ‘eligible measure’ suitable for funding under the Green Deal.
[edit] Related articles on Designing Buildings
- Big growth in district heating markets - now and on the horizon.
- Biomass.
- Biomass CHP.
- BSRIA guide to heat interface units.
- Capital allowances.
- Can the Zeroth Energy System reduce the carbon footprint of HVAC services?
- Carbon capture and storage.
- Coefficient of Performance CoP.
- Community energy network.
- District energy.
- Fuel cell.
- Future of electricity in domestic buildings.
- Green Deal.
- Heat pump COP & EER and central plant SCOP in ambient loops.
- Heat Networks Investment Project HNIP.
- Liquefied petroleum gas (LPG).
- Low Carbon Energy Centre, London.
- Low carbon heating and cooling.
- Microgeneration.
- Micro-CHP.
- Micro-grid.
- On-site generation of heat and power.
[edit] External references
Featured articles and news
We're expanding our collaborative mission by launching DB Intelligence, an exclusive market research advisory panel. Built environment professionals can now get paid to share their expertise on industry trends, products and services.
Panel members receive direct financial incentives for participating in research projects like short surveys, 1-2-1 interviews and focus groups. Register today to shape the future of the construction sector.
Planning condition discharge in England and Wales
A brief exoplanation from a building compliance expert, with further links.
Overheating guidance and tools for building designers
Guidance for dealing with element of building fabric control that have increasing importance.
Shading for housing, a design guide
From the Good Homes Alliance and British Blind and Shutter Association.
UK Standard Skills Classification (SSC)
A shared framework for describing skills needs.
Social media ban consultation comes to close
CIOB urges UK Government to consider social media’s role in careers guidance in ban debate.
The latest of eight Skills England apprenticeship units
The addition of battery manufacturing welcomed by ECA with a warning about the risks of fast-tracked apprenticeship units.
Building Control Independent Panel final report
A precis of a key report led by Dame Hackitt with full recommendations and link to the government response.
Building Safety recap April, 2026
A short and longer run-through of the month, with links to further information and sources.
CIAT May 2026 briefing.
From medieval scribes to modern word art.
ECA welcomes crackdown on late payment and push for clean energy, whilst CIOB seek fixed cladding removal timeframes.
Cyber Security in the Built Environment
Protecting projects, data, and digital assets: A CIOB Academy TIS.
Managing competence in the built environment
ITFG publishes new industry guide on how to meet the ICC principles.
The UK's campaign to reduce noise pollution: Mythbusting, articles and topic guides.





















Comments
To start a discussion about this article, click 'Add a comment' above and add your thoughts to this discussion page.