Combined heat and power (CHP) is the simultaneous generation of heat and electricity, or mechanical energy, in the same process. It not only ensures an increase in the energy efficiency of the power plant, but also leads to significantly lower fuel consumption compared to separate generation processes.
Generation from so-called high-efficiency cogeneration is particularly preferable and supported under a dedicated support scheme. According to the Energy Law, high-efficiency cogeneration is the production of electricity or mechanical energy and so-called useful heat in cogeneration, which ensures savings of primary energy consumed in a cogeneration unit:
- of not less than 10% compared to generation in separate systems;
- with an installed electrical capacity of less than 1 MW, compared to generation in separate systems.
The Law on the Promotion of Electricity from High Efficiency Cogeneration sets out dedicated rules for the provision of support for electricity generated from high-efficiency cogeneration in cogeneration units and the issuance of guarantees of origin for electricity from high-efficiency cogeneration.
As a rule, support can be obtained by a generator of electricity in high-efficiency cogeneration in three statutory forms – in the form of an auction support scheme – cogeneration bonus (for new cogeneration units or substantially modernised units with an installed electrical capacity of not less than 1 MW and less than 50 MW), in the form of a guaranteed bonus (modernised or existing units with an installed electrical capacity of not less than 1 MW and less than 50 MW or units with an installed electrical capacity of less than 1 MW), or in the form of an individual guaranteed bonus and an individual cogeneration bonus (units with an installed electrical capacity of not less than 50 MW).