An introduction to CHP issues
by Aviel Verbruggen
International Journal of Global Energy Issues (IJGEI), Vol. 8, No. 4, 1996

Abstract: The article focuses on the basic characteristics of the combined heat and power (CHP) process and of CHP projects. The technical efficiency of CHP is shown to consist of a quality aspect (the heat/power ratio) and a quantity aspect (the thermal conversion efficiency). The technical efficiency numbers depend on three processes: the CHP one, the single power one and the single heat one. Understanding CHP starts with a study of the major features of the joint end-uses to be served: heat and electricity, such as storage, transport, market extent and service reliability. Next, it is important to situate CHP in a wider context of fuel markets and of electricity markets. The triple relationship of CHP to the electric grid is the single most influential factor of CHP feasibility: surplus electricity must be sold at a 'fair' price to the grid, while the latter should supply make-up and back-up power also at 'fair' prices. For the appraisal of CHP projects it is necessary to make an hour-by-hour analysis of the heat and power loads, and a simulation of the performance of the CHP plant in meeting these loads, given the production possibility set of the CHP plant and given the conditions for trading power with the grid. Forecasting the future of CHP requires a neat distinction between independent (industrial and commercial) CHP and utility (district heating) CHP. The two types of CHP development own different characterisitcs and require very different regulatory and public policies.

Online publication date: Tue, 15-Jul-2014

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