Government tightens up efficiency requirements for CHP subsidies


Government will legislate to increase efficiency requirements of combined heat and power (CHP) plants supported by the contracts for difference (CfD) regime.

Both large and smaller (sub-25MWe) plants applying for CfD support will need to demonstrate a minimum of 70% overall efficiency, primary energy savings of 10% and 10% heat efficiency.

The department for business, energy & industrial strategy (Beis) outlined its plans in a CfD amendment consultation response.

The bulk of the amendments relate to onshore wind on remote islands, which government says will be allowed to compete for funds with less established technologies in a separate ‘pot’ to more established technologies. The minimum support threshold for remote island wind will remain at 5MW.

See the response here.

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