Combined production of electricity and heat leads to a primary energy use that is better than it would be in separate production. Less fuel is used for the generation of the same quantities of electricity and heat than would be used if they were produced separately. Combined energy production allows for more effective fuel usage and to reduce global carbon dioxide emissions, which improves the company’s overall image. Inserting a cogeneration unit to an existing boiler room also means lower electricity operating costs (less electricity purchased, exemption from network charges and other taxes on electricity, reduction of the price risk etc.). A cogeneration unit may also serve as a backup source improving the safety of the power supply.

Companies which invest in cogeneration may count on additional income from cogeneration support subsidiaries (certificates, tax exemptions, investment subsidies, greenhouse gas emission allowances free of charge etc.). Investments in installations of cogeneration units made by small and medium enterprises qualify for funding programs provided in many EU countries. 

Due to the modular configuration of cogeneration system; availability of equipment, broad range of applications, ease of fuel supply and relatively high efficiency, gas cogeneration systems are the most efficient equipment for conversion of energy contained in primary fuel into electricity and heat. They allow savings of up to 30 percent of primary energy in comparison with separate production of heat and electricity. Cogeneration units are popular with singular facilities with relatively small power needs, especially in the industry, where the heat generated in the boiler room or supplied from the network and the electricity from the grid are replaced with the own combined production. Cogeneration units can then have a significant share in the supply of steam, hot water and hot air in the processing industry for technological purposes, heating and cooling as well as a large share in meeting the demand for electricity. 

Profitability of an installation based on cogeneration units is conditioned on correct matching of the system to the facility so as to ensure maximum energy use. For this to be possible, it is necessary to correctly determine the thermal power of cogeneration units relative to the facility’s demand. In order to achieve maximum operational efficiency, Hoval develops scenarios with various models and prepares detailed return-on-investment calculations based on present framework conditions, which is especially important to potential investors. A properly designed cogeneration system leads to lower costs of final energy generation and contributes to reduced emissions, in particular of carbon dioxide.

To read more about our new EG20 CHP cogeneration unit click here.

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