CHP Feasibility - Introduction
The main purpose of a feasibility study is to identify whether or not the project is suitable for development, and to do this at the earliest possible stage, i.e. before significant effort or resource is committed. Assessing feasibility is the first step in the project development process once the initial decision to investigate the potential for CHP has been agreed.
The basic steps for assessing the feasibility of a CHP scheme can be summarised as follows:
- Determine Site heat and power demands.
- Select CHP plant of an appropriate rating and type.
- Assess operating costs/savings when using the CHP plant.
- Determine where/how the CHP unit will be installed and connected to fuel, heat and power systems.
- Assess the capital costs of installation or the energy supply costs if an energy supply contract is being considered.
- Assess the economic, energy and environmental benefits of the installation.
- Assess the nature of other relevant issues, e.g. permits or consents.
The economics of small-scale CHP plant normally do not allow for the major use of consultants or in-house staff and Suppliers will normally offer some form of turnkey project. In practice, any assessment will require some in-house effort even if most of the work is undertaken by consultants or suppliers.
In-house staff will need to evaluate these proposals and the assumptions on which they are based to see if they match expected business needs. The financial aspects and the legal aspects will require in-house or specialist advice.
The various components of the feasibility assessment can be carried out by:
- In-house staff.
- Consultants.
- CHP suppliers.
- A combination of the above.
A number of disciplines are likely to be involved at different stages of the assessment process:
- Engineering – electrical, mechanical, building services, control and instrumentation, structural, acoustic and environmental.
- Finance.
- Legal.
