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Combined Heat and Power (CHP): the route to 2050

BEIS recognises the current challenges facing the economy and this consultation is not indicating the removal of support at this time but seeking feedback from all CHP stakeholders to shape the future approach. BEIS is inviting views and seeking evidence in response to the questions below. Responses will help inform future policy development.

Section 2 Policy Landscape

  1. Do you agree with our characterisation of the benefits and incentives?
  2. Do you have any additional points to make on the current incentives?
  3. Do you receive any non-financial or alternative benefit(s) for achieving CHPQA certification?
  4. Do you agree with our summary of the wider direct and indirect benefits of CHP? Can you describe any other monetary or non-monetary benefits you are aware of?
  5. In what circumstances would the business case for CHP deployment remain sufficiently positive, in the absence, reduction or closure to new entrants of the incentives described above in sections 2.1 and 2.2? How will this differ in the short, medium and long term?
  6. Are there any barriers to CHP acting as a flexible system asset that are specific to the technology? How does this differ for industrial-scale plant, CHP used in heat networks and small-scale plants?
  7. How do you consider the changes to the network regulatory framework (e.g. Targeted Charging Review, introduction of RIIO-2 etc) will influence the decisions of both new and existing CHP plant operators?
  8. How do you plan to address the declining carbon reduction of natural gas CHP, where it is currently the preferred technology?

Section 3 Potential future developments for CHP

  1. How could these schemes support moving CHP to better achieve energy efficiency and decarbonisation objectives for your circumstances/system?
  2. What scope is there to increase the use of alternative, low carbon and renewable fuels for use in CHP plants? Are there any specific considerations in relation to hydrogen?
  3. What are the challenges and benefits of converting existing natural gas CHP to new fuels? Are you taking steps in this area or are you aware of other projects which are?
  4. Which key technological developments have greatest potential to be combined with CHP? Would these enhance performance and improve the efficiency of CHP?
  5. What are your views on the practicalities and potential costs and benefits of converting existing CHP plant to new uses or combining with new technologies?
  6. Taking account of all the previous sections, what changes would you propose to the incentive framework for CHP to be better targeted to achieve decarbonisation and energy efficiency, while not impacting on industrial competitiveness?
  7. If the incentives described in section 2.1 were to change, how could the money be best used to support new energy efficiency measures and decarbonisation?

The Institution of Engineering and Technology Trustees propose submitting a response to this consultation and invite comments from Members who have expertise in this area and have studied the consultation documents. In its capacity as a professional body, the IET will confine itself to only addressing those questions that are within its area(s) of competence.

For more information and a summary of the questions, please refer to the consultation webpage.

Please respond no later than 9 am 03/08/20 to Caroline Holman, with "Combined Heat and Power (CHP): the route to 2050" in the subject line.