Carbon Plan ‘good news for micro CHP industry’

The government’s newly-announced Carbon Plan has been welcomed by the Combined Heat and Power Association (CHPA) which works to promote micro CHP technology.

Secretary of State Chris Huhne announced the plans for achieving the emissions reductions set out in the first four Carbon Budgets, which run until 2027.

“This is hopefully the start of a real commitment by government to bring low-carbon heating back in from the cold and should be welcomed as such,” said Graham Meeks, director of the CHPA.

“The Plan reveals, probably for the first time, an enduring role for combined heat and power in homes, buildings and industry – starting today and reaching through to 2050.This approach is vital when it comes to the question of heat, which accounts for half our emissions and which for many is the greater part of the energy bill.”

It also highlights the central role of district heating – integrating low-carbon energy sources to help reduce carbon emissions in urban centres, he added.

The challenge now is to ensure policies are in place to realise the plan of sustaining and expanding the benefits of micro CHP and district heating, Mr Meeks continued.  

He warned: “The industry today faces some major policy pitfalls which must be addressed if it is to deliver its full potential in the next decade and beyond.”

The CHPA is calling on the government to take action in several key areas:

  • Exempting CHP fuel used for heat production from the Carbon Price Support levy
    and retaining Climate Change Levy Exemption Certificates for CHP until the
    introduction of an effective, alternative Feed-in Tariff incentive.
  • Introduction of a 15p/kWh tariff for microCHP under the Small-Scale Feed-In Tariff regime, and extension of this scheme to include plant up to 50 kWe capacity.
  • Review of renewable CHP incentives, including extended eligibility for the Renewables Obligation until 2017, a dedicated CHP band in the Renewable Heat Incentive and retention of thesingle ROC band for Energy-from-Waste CHP.

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