Combined Heat and Power Focus

DECC's Free resource supporting the development of CHP

CHP Helpline 0845 365 5153 or 01235 753033

Decision Making

The nature of the final approval will depend on the implementation route identified. Where the decision is for a design and manage or turnkey project, the approval process should largely follow established company procedures for directly funded projects. However, longer evaluation horizons are advisable for CHP projects than for projects involving market-related products, as the provision of energy to the site is a predictable on-going requirement. The plant and equipment that use the energy may change, but the need for energy is still there.

The ESCO contract, on the other hand, can be a complex one and is probably unlike other contracts that the company has experienced. The decision-making processes may, therefore, need to be significantly different from those used in other, more conventional projects. Issues of particular importance when considering this type of contract include:

  • The impact of external finance.
  • Security of energy supplies.
  • Industrial relations.
  • Default on contractual arrangements.

Furthermore, the concept of contracting out the provision of critical utility services to another organisation over which there is less direct control can be intimidating, although it will have been considered in depth earlier in the evaluation procedure. It is important for the company to have confidence in the abilities of the contractor. Furthermore, the incentives and deterrents built into the contract must be sufficient to ensure security of supply.


Other Topics


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What's New

UK CHP Development Map

UK CHP Development Map

UK CHP Development Map

UK CHP Development Map Screenshot

The UK CHP Development Tool is the latest version of the map, originally developed as a tool aimed at assisting power station developers consider the opportunities for supplying heat and development of combined heat and power (CHP) as required under planning policy. However, it can also be used by both small and large organisations to help identify the locations where the supply of CHP heat would have the greatest potential, and therefore the largest positive environmental impact.

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