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Step by step CHP: 
The pitfalls to avoid 
between planning 
and design
Cogeneration can save money, conserve 
energy, and reduce emissions - but 
specifying the right unit for the site in 
question has its pitfalls. 
Find out how to avoid these common mistakes 
when taking your CHP project from planning 
through to design.
Risks to the viability of a CHP project
Risks to the viability of a CHP project 
Poor site energy 
efficiency 
Mis-sizing plant Site-specific issues
Risks to the viability of a CHP project 
Poor site energy 
efficiency 
Mis-sizing plant 
The wrong choice of fuel 
Site-specific issues 
The finance model
Risks to the viability of a CHP project 
Poor site energy 
efficiency 
Mis-sizing plant 
The wrong choice of fuel 
Site-specific issues 
The finance model 
None of these problems, however, are insurmountable.
Poor site energy efficiency 
Greater and longer term benefits are available if energy saving measures are implemented and 
poor performing plant are improved before sizing a CHP system.
Poor site energy efficiency 
Greater and longer term benefits are available if energy saving measures are implemented and 
poor performing plant are improved before sizing a CHP system. 
So check: 
Building insulation 
Lighting 
Power factor 
Existing boiler 
efficiency
Poor site energy efficiency 
Greater and longer term benefits are available if energy saving measures are implemented and 
poor performing plant are improved before sizing a CHP system. 
So check: 
Building insulation 
Lighting 
Power factor 
Existing boiler 
efficiency 
Every 1°C 
of site 
overheating 
adds 8% 
to heating 
costs
Mis-sizing plant 
Detail is vital when sizing CHP.
Mis-sizing plant 
Detail is vital when sizing CHP. 
Calculate hourly consumption of power 
and gas during the working day, the 
week and season to season.
Mis-sizing plant 
Detail is vital when sizing CHP. 
Calculate hourly consumption of power 
and gas during the working day, the 
week and season to season. 
Economical viability typically requires 
a heat demand all year of at least 17 
hours a day, 5 days a week.
Mis-sizing plant 
Detail is vital when sizing CHP. 
Calculate hourly consumption of power and 
gas during the working day, the week and 
season to season. 
Economical viability typically requires 
a heat demand all year of at least 17 
hours a day, 5 days a week. 
The ratio of heat to power should 
govern the choice of CHP technology and 
size. Mismatch could dramatically reduce 
potential CHP gains.
Future-proofing
Future-proofing 
What are the prospects of fuel 
and electricity cost changes? 
Are energy efficiency measures in 
place?
Future-proofing 
What are the prospects of fuel 
and electricity cost changes? 
Does the business have plans to 
expand? 
Are energy efficiency measures in 
place? 
Will the site’s heat and power 
demands change?
Site-specific issues 
Overlooking the detail in the crucial connections of the CHP system can lead to costs over 
running during installation.
Site-specific issues 
Overlooking the detail in the crucial connections of the CHP system can lead to costs over 
running during installation. 
Check the exact siting of: 
The gas network 
connection 
The power network 
connection 
A connection to local 
heat network where 
available 
A heat rejection outlet 
where needed
Site-specific issues 
Overlooking the detail in the crucial connections of the CHP system can lead to costs over 
running during installation. 
Check the exact siting of: 
Are there planning requirements 
or noise abatement issues to be 
considered? 
The gas network 
connection 
The power network 
connection 
A connection to local 
heat network where 
available 
A heat rejection outlet 
where needed
Site-specific issues 
Overlooking the detail in the crucial connections of the CHP system can lead to costs over 
running during installation. 
Check the exact siting of: 
Are there planning requirements 
or noise abatement issues to be 
considered? 
Can the gas pipework 
accommodate the increased 
volume of gas? 
The gas network 
connection 
The power network 
connection 
A connection to local 
heat network where 
available 
A heat rejection outlet 
where needed
Site-specific issues 
Overlooking the detail in the crucial connections of the CHP system can lead to costs over 
running during installation. 
Check the exact siting of: 
Are there planning requirements 
or noise abatement issues to be 
considered? 
Can the gas pipework 
accommodate the increased 
volume of gas? 
Will the power network support 
your connection? 
The gas network 
connection 
The power network 
connection 
A connection to local 
heat network where 
available 
A heat rejection outlet 
where needed
Fuel Selection and Procurement
Fuel Selection and Procurement 
Check the duration and 
volumes in your gas and 
electricity supply contract - 
there could be exit fees.
Fuel Selection and Procurement 
Do you have biogas available? 
Some biogases can contain 
corrosive components, so the 
choice of CHP plant is crucial 
as is the choice of lubricant. 
Check the duration and 
volumes in your gas and 
electricity supply contract - 
there could be exit fees.
Finance model
Finance model 
Invest your own money to get all 
the cost benefits but take on all 
the risk.
Finance model 
Invest your own money to get all 
the cost benefits but take on all 
the risk. 
Utilise third party financing to 
share the benefits and minimise 
the risks.
Check out the incentives
Check out the incentives 
CHP can attract tax and other benefits that can 
boost the economy...
Check out the incentives 
CHP can attract tax and other benefits that can 
boost the economy... 
...especially when specified to meet the 
requirements of ‘good quality’ CHP under the 
CHPQA scheme.
Checklist 
To avoid the pitfalls in cogeneration, detailed design is the only design. Remember to:
Audit energy 
efficiency measures. 
Correctly size the 
plant based on heat 
and power demands. 
Manage your fuel 
selection and cost. 
Checklist 
To avoid the pitfalls in cogeneration, detailed design is the only design. Remember to:
Audit energy 
efficiency measures. 
Correctly size the 
plant based on heat 
and power demands. 
Mitigate any site specific 
issues that might affect 
installation. 
Manage your fuel 
selection and cost. 
Select a finance 
model that suits the 
project. 
Checklist 
To avoid the pitfalls in cogeneration, detailed design is the only design. Remember to:
01 
CHP Project Planning: How 
to Plan CHP Equipment 
Installation 
www.energ.co.uk/chp

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Step by Step CHP: the Pitfalls to Avoid Between Planning and Design

  • 1. www.energ-group.com/chp Step by step CHP: The pitfalls to avoid between planning and design
  • 2. Cogeneration can save money, conserve energy, and reduce emissions - but specifying the right unit for the site in question has its pitfalls. Find out how to avoid these common mistakes when taking your CHP project from planning through to design.
  • 3. Risks to the viability of a CHP project
  • 4. Risks to the viability of a CHP project Poor site energy efficiency Mis-sizing plant Site-specific issues
  • 5. Risks to the viability of a CHP project Poor site energy efficiency Mis-sizing plant The wrong choice of fuel Site-specific issues The finance model
  • 6. Risks to the viability of a CHP project Poor site energy efficiency Mis-sizing plant The wrong choice of fuel Site-specific issues The finance model None of these problems, however, are insurmountable.
  • 7. Poor site energy efficiency Greater and longer term benefits are available if energy saving measures are implemented and poor performing plant are improved before sizing a CHP system.
  • 8. Poor site energy efficiency Greater and longer term benefits are available if energy saving measures are implemented and poor performing plant are improved before sizing a CHP system. So check: Building insulation Lighting Power factor Existing boiler efficiency
  • 9. Poor site energy efficiency Greater and longer term benefits are available if energy saving measures are implemented and poor performing plant are improved before sizing a CHP system. So check: Building insulation Lighting Power factor Existing boiler efficiency Every 1°C of site overheating adds 8% to heating costs
  • 10. Mis-sizing plant Detail is vital when sizing CHP.
  • 11. Mis-sizing plant Detail is vital when sizing CHP. Calculate hourly consumption of power and gas during the working day, the week and season to season.
  • 12. Mis-sizing plant Detail is vital when sizing CHP. Calculate hourly consumption of power and gas during the working day, the week and season to season. Economical viability typically requires a heat demand all year of at least 17 hours a day, 5 days a week.
  • 13. Mis-sizing plant Detail is vital when sizing CHP. Calculate hourly consumption of power and gas during the working day, the week and season to season. Economical viability typically requires a heat demand all year of at least 17 hours a day, 5 days a week. The ratio of heat to power should govern the choice of CHP technology and size. Mismatch could dramatically reduce potential CHP gains.
  • 15. Future-proofing What are the prospects of fuel and electricity cost changes? Are energy efficiency measures in place?
  • 16. Future-proofing What are the prospects of fuel and electricity cost changes? Does the business have plans to expand? Are energy efficiency measures in place? Will the site’s heat and power demands change?
  • 17. Site-specific issues Overlooking the detail in the crucial connections of the CHP system can lead to costs over running during installation.
  • 18. Site-specific issues Overlooking the detail in the crucial connections of the CHP system can lead to costs over running during installation. Check the exact siting of: The gas network connection The power network connection A connection to local heat network where available A heat rejection outlet where needed
  • 19. Site-specific issues Overlooking the detail in the crucial connections of the CHP system can lead to costs over running during installation. Check the exact siting of: Are there planning requirements or noise abatement issues to be considered? The gas network connection The power network connection A connection to local heat network where available A heat rejection outlet where needed
  • 20. Site-specific issues Overlooking the detail in the crucial connections of the CHP system can lead to costs over running during installation. Check the exact siting of: Are there planning requirements or noise abatement issues to be considered? Can the gas pipework accommodate the increased volume of gas? The gas network connection The power network connection A connection to local heat network where available A heat rejection outlet where needed
  • 21. Site-specific issues Overlooking the detail in the crucial connections of the CHP system can lead to costs over running during installation. Check the exact siting of: Are there planning requirements or noise abatement issues to be considered? Can the gas pipework accommodate the increased volume of gas? Will the power network support your connection? The gas network connection The power network connection A connection to local heat network where available A heat rejection outlet where needed
  • 22. Fuel Selection and Procurement
  • 23. Fuel Selection and Procurement Check the duration and volumes in your gas and electricity supply contract - there could be exit fees.
  • 24. Fuel Selection and Procurement Do you have biogas available? Some biogases can contain corrosive components, so the choice of CHP plant is crucial as is the choice of lubricant. Check the duration and volumes in your gas and electricity supply contract - there could be exit fees.
  • 26. Finance model Invest your own money to get all the cost benefits but take on all the risk.
  • 27. Finance model Invest your own money to get all the cost benefits but take on all the risk. Utilise third party financing to share the benefits and minimise the risks.
  • 28. Check out the incentives
  • 29. Check out the incentives CHP can attract tax and other benefits that can boost the economy...
  • 30. Check out the incentives CHP can attract tax and other benefits that can boost the economy... ...especially when specified to meet the requirements of ‘good quality’ CHP under the CHPQA scheme.
  • 31. Checklist To avoid the pitfalls in cogeneration, detailed design is the only design. Remember to:
  • 32. Audit energy efficiency measures. Correctly size the plant based on heat and power demands. Manage your fuel selection and cost. Checklist To avoid the pitfalls in cogeneration, detailed design is the only design. Remember to:
  • 33. Audit energy efficiency measures. Correctly size the plant based on heat and power demands. Mitigate any site specific issues that might affect installation. Manage your fuel selection and cost. Select a finance model that suits the project. Checklist To avoid the pitfalls in cogeneration, detailed design is the only design. Remember to:
  • 34. 01 CHP Project Planning: How to Plan CHP Equipment Installation www.energ.co.uk/chp