CHP systems amplify efficiency by generating electricity and heat on-site, bypassing approximately 9% of energy losses that occur during the transmission of electricity from remote generators to end consumers through the National Grid. This localised, on-site generation enhances overall power efficiency.
Moreover, considering that around 58% of the total energy charge encompasses the commodity fee for electricity transmitted via the national grid, your comprehensive bill consists of diverse components, illustrated in the diagram below:
Illustration of non-commodity costs (source: SSE Energy)
Fixed charges for these diverse components are often applied, but they become more significant as they are multiplied by your kWh consumption. By generating your power on-site and reducing reliance on the grid, you can achieve considerable energy cost savings.
For instance, if your current electricity cost is 35p per kWh, nearly 20p accounts for the commodity rate, representing the electricity itself. The remaining 15p per kWh encompasses various non-commodity charges, as outlined above.
With on-site kWh generation, these non-commodity charges are instantly economised. Furthermore, adopting a more economical input fuel leads to a reduction in the commodity rate (electricity itself), amplifying your savings. This twofold approach translates to substantial reductions in energy expenses.
The benefits don’t stop there. The heat generated by the CHP system is harnessed and integrated into your site's processes, effectively offsetting heat demands. This results in additional energy cost reductions by countering the need for direct gas-heated appliances or by decreasing electrical demands in the case of heat appliances powered by electricity. This comprehensive approach ensures that every unit of energy is maximised for efficiency and cost-effectiveness.
Key benefits of on-site generation
- Reduced energy costs
- Improved reliability
- Power resilience
- Greater control of energy supply and energy price security
- Independence from the National Grid
Harnessing a variety of fuel sources such as biogas or hydrogen, our selection of CHP systems can effectively lower carbon output and actively support environmentally conscious energy strategies.
Collaborating with our strategic partner, Flogas, we provide our clients with the opportunity to access a range of transitional fuels that support the transition towards more sustainable energy alternatives.
