Quadrupling Britain’s combined heat and power sector to 12-15GW of installed capacity would save £3bn a year in energy costs, the sector’s association the CHPA, said yesterday.
The association’s national conference in Brighton heard calls for financial incentives to achieve this target by 2010.
The Government has set a target of 5GW of CHP capacity by 2000, while Labour and the Liberal Democrats are committed to 10GW by 2010. At present, there is 3,600MW in the UK.
The CHPA said measures to encourage its advocated expansion of the sector could include capital allowances for CHP projects, reforming the Non-Fossil Fuel Obligation to cover such schemes, and increasing the value of their exemption from the fossil-fuel levy. Achieving its target would also cut the UK’s carbon emissions by 15 million tonnes, stimulate £5bn worth of investment and create 10,000 jobs, the organisation said.