CHP systems for blocks of flats? A financial assessment

• Published in: Applied energy 1994, Vol.49 (3), p.301-315
• Main Authors: Dupe, C., Babus'Haq, R.F., Probert, S.D., Chauvet, L.
• Format: Article
• Language: English
• Subjects: Applied sciences; Economic data; Economic data on energy; Energy; Energy economics; Exact sciences and technology; General, economic and professional studies
• ISSN: 0306-2619; 1872-9118
• DOI: 10.1016/0306-2619(94)90028-0

High-rise blocks of flats in the UK have been identified as a large potential market for the installation of combined heat-and-power (CHP) systems. Unlike leisure centres, hotels and hospitals, blocks of flats represent, as yet, a relatively new opportunity for CHP that has still to be exploited in the UK. With the aid of the analysis developed in the present investigation, the financial prospects for implementing CHP in ten existing blocks, ranging from 34 to 116 flats per block have been examined. The five smallest blocks appear to be financially non-viable, at present, for such installations, whereas, for each of the other five blocks, CHP appeared to be a worth-while proposition. For the latter, pay-back periods (i.e. capital investments required divided by the resulting savings per year) of between 3·3 and 4·9 years can be achieved. In addition, in order to obtain the shortest pay-back period, it is wiser for the outputs from the CHP plant to be matched to the thermal demand of the block rather than to its electricity demand.