1) What is Combined Heat and Power (CHP)?

2) What are the benefits of Combined Heat and Power?

Compared to divided processes and technologies of the power generation, CHP exploits the primary energy carriers most efficiently. Energy savings of up to 36% are possible. In these plants, almost all energy sources (i.e. natural gas, heating oil, coal, waste, biomass) can be utilised. [TOP]

3) What is District Heat?

District heat - also referred to as district- or city heating – is a type of heating system which has supplied several buildings up to entire cities and even entire regions with heat for more than 130 years – centrally, from combined heat and power plants, heat plants and through waste heat utilisation. In general, water and in special cases even steam is utilised as a heat conductor, which supplies the consumers over a pipe line network with heat for heating, for service water heating, for process steam utilisation and even for cooling purposes. [TOP]

4) What are the benefits of District Heating and Cooling?

Environment-friendliness: especially through the various utilisation possibilities of combined heat and power (CHP), essential energy savings and a decline of the emissions of noxious materials, especially the green house gas CO_2, are possible.

Uninterrupted supply guarantee: Because of the possibility of fuel diversification, an economically high conformity to the requests of the energy markets world-wide is given.

Commercial efficiency: district heating systems at present represent the best alternative of heat- and power generation systems with respect to the ecology and economy.

Employment: district heating systems have high initial investment costs (cogeneration plant, laying of pipelines). Through this, positive effects on the job market arise, especially in the pipeline- and plant construction businesses. [TOP]

5) What Advantages District Heating brings to the customer?

Opposed to the competitive energy carriers natural gas and heating oil, the following general advantages can be itemised for the customer:

Relatively small price fluctuations due to flexible fuel mix
Very low space requirements
Very high cleanliness
No fuel storage in the house due to which a high degree of safety and minimal risk of damages
Chimney not required
No pre-financing of fuel
Very high uninterrupted supply guarantee
Very low replacement costs of the generation plant
Very low operations and maintenance costs
Contribution to the energy conservation policy very high, because combined heat and power (CHP) and renewable energies can be utilized. [TOP]

6) How high is the price for District Heating compared to the competition?

Generally speaking, district heating systems stand in competition to gas and heating oil. The prices adapt themselves to the conditions of the local and regional heat market. The prices of district heat, however, are very stable as opposed to the price fluctuations on the raw material markets because the costs for fuel hold a significant smaller share of the prices as compared to decentralised systems (energy is replaced by capital). In addition, the possibility of the fuel diversification and the utilisation of domestic energy sources offer further supply- and price securities. The prices can vary strongly depending on specific market conditions, pricing components and national specifications. [TOP]

7) What Costs can be expected when transposing Oven Heating to District-/Local Heat or a Newly Constructed Plant?

The investments in a district heating system lie lower than the costs for an oil- or gas central heating system. For all plant components necessary within the apartment, the expenses are same. The small compact house substation, however, is substantially more cost efficient than a heating boiler. All costs that would occur in connection with a chimney can be dropped. Moreover, no space for fuel storage is required. The installation of a district heating system means an increase in value of the building through space saving, safety and an increase in comfort. [TOP]

8) District Heating. Problematic when Changes of Supply occur?

District heating systems also offer flexibility in subsequent changes of the necessary heat capacity. Maybe through a change of the consumption customs, a retroactively installed heat insulation, an added building or an extension of the living space. Each change of capacity, be it an increase or decrease, can be set exactly to the currently existing heat consumption. [TOP]

9) What are the advantages of CHP/DHC related to fuel diversification? (What Advantages are given in connection with District Heating Systems?)

District heat is a secondary energy, i.e. it transforms primary energies efficiently into secondary energy like hot water/steam. This takes place in cogeneration or heating plants.

Through the utilisation of these central generation units:

-         fossil fuels - for example heating oil, natural gas, coal can be used

-         fuels which can be not at all or with difficulties be used in single plants, for instance waste, coal or renewable energies can be utilised

-         domestic energy sources can quickly be added to the supply system on the heat- and energy market without restrictions

-         future oriented service can be envisioned through a fast change of energy carrier during a supply shortage

-         the utilisation of possible future energy sources like hydrogen- or solar energy will be possible on a large scale.

-         industrial waste heat utilisation exists as a further option. [TOP]

10) Which Possibilities CHP/DHC offer to lower the green house gases - especially CO₂?

When generating district heat with CHP plants, the CO₂-emissions can be diminished by up to 58 % by using fossil energies - especially natural gas as a primary energy carrier – as opposed to the separate production of electricity and district heat. The reason for this is the better fuel degree of efficiency and the change of fuels from a fuel mixture to natural gas.  Renewable energies with neutral CO₂-balances can become established quickly and on large scale on the heat market. [TOP]

11) Why do the CHP plants still have to be promoted in spite of all obvious energy savings advantages?

Combined heat and power means replacement of energy through capital: production and distribution of district heat requires high investments and long payback times. The general economic advantage is incontestable; the political specifications – like energy conservation and reduction of imported energy sources– can be met. However, the commercial profit does not always show from the beginning, due to the so-called initiation losses. The short-term interest of a business (e.g. shareholder value) stands in contrast to long-term business strategies.