Tariffs Comparison
To realise the benefits of CHP, the plant operator needs to buy fuel and convert it to electricity in such a way that the total costs of such conversion produce a saving in costs compared with the purchase of electricity from external sources.
However, it is often not cost-effective to operate the CHP plant during the night, when the cost of power purchase is less than the marginal cost of generation by CHP.
To encourage better plant utilisation, some CHP energy supply contracts offer lower price energy charges when the monthly usage averages more than 17 hours per day.
