Jurisdiction(s):
United Kingdom

UK Combined Heat and Power (CHP): Technology, Efficiency, System Options, Operations, Incentives, Safety and Deployment

Published by a LexisNexis Energy expert

Practice notes

What is combined heat and power?

Combined Heat and Power (CHP) is a method of supplying both heat and electricity to a building or industrial operation. It delivers heat and power at the same time from a single process. Although systems have commonly been gas-fired, this need not always be the case.

In a conventional setup, fuel is burned to generate heat that is circulated through a building. Separately, electricity is produced at a power station, typically by burning fuel to create steam that drives turbines. The excess heat from electricity generation is usually rejected, squandering useful energy.

CHP instead uses fuel (often gas) to produce electricity while capturing the associated waste heat to warm a building or support a process. The electricity can be consumed on site or exported to the grid.

There are practical considerations: CHP units can be louder than standard boilers, and exhaust emissions must be managed so they stay within acceptable limits. The upfront cost is also higher than for a comparable boiler system. Compared with importing electricity from the grid and using a boiler on site, a well-run...

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Web page updated on 22/05/2026

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