‘Homes with power plants could take heat out of Global Warming’ ran the headline in the Daily Telegraph. It was generated earlier this year when the Deputy Prime Minister John Prescott went walkabout with journalists through the new Greenwich Village.

Pointing to the new standards for housing of the future, the potential role of domestic chp was highlighted. Prescott’s officials then briefed journalists that, “Within five years, domestic level chp systems could be saving a quarter of the households’ carbon emissions.”

While ‘homes with power plants’ makes a nice headline, how credible is the vision for small business and domestic power stations? Running your own power plant might appeal to the Docklands riverside dweller bored with the WAP mobile and surround-sound DVD system, but can the technology really provide a viable option in today’s short-term energy markets?

Over the next six pages we investigate the potential for embedded generation schemes, and discuss the drivers and barriers to the uptake of this technology.