The government published its draft strategy for combined heat and power. It outlines plans to deliver at least 10 000 MWe of good quality capacity in the UK by 2010 – double the current output.
The government has proposed a number of draft measures which aim to encourage greater use of combined heat and power (chp) – the simultaneous generation of electricity and useful heat. These include exemption from the Climate Change Levy, and inclusion in the Enhanced Capital Allowances (ECA) scheme for certain chp related equipment. Domestic installations of chp (micro chp) are also eligible for reduced vat in some circumstances.

Dr Eoin Lees, chief executive of the Energy Saving Trust, says: "The target set requires £5 billion of investment between now and 2010, much of which needs to come from the private sector. This is going to be tough for the government to achieve, and means getting the market right, but it is vital if they are to deliver their sustainable energy policy and climate change commitments."

David Green, director of the Combined Heat and Power Association welcomed the strategy, but was cautious: "In 1997 the government committed to a new chp strategy to convince more companies to put chp to work. Five years on and orders have dried up, redundancies have set in and all the major chp suppliers have disbanded their development teams."

Green said he hoped that the strategy marked the start of a new approach from government. "The consultation must end the interdepartmental bickering that has characterised chp policy for the last five years."

One of the major hurdles to the success of chp has been the new electricity trading arrangements. Many of those involved in sustainable energy generation have called for further reform.

Source

Building Sustainable Design