New report highlights urgent decisions facing public sector Combined Heat and Power systems
Research highlights why public sector organisations should start planning now for the transition as hundreds of assets approach the end of their operational life
Hundreds of public sector organisations are approaching a critical point in their decarbonisation journey, with new research saying that decisions made over the next few years could shape carbon emissions, energy resilience and infrastructure investment well into the 2040s.
For many organisations, particularly NHS trusts and universities, Combined Heat and Power (CHP) systems have been a reliable and cost-effective way to generate heat and electricity for more than two decades.
At Salix, we’ve supported the installation of many CHP schemes through loan programmes during the 2010s, helping organisations improve energy efficiency and reduce emissions at the time.
A new report by Energy Systems Catapult, commissioned by the Department for Energy Security and Net Zero, concludes that the context for CHP has changed significantly.
The report is set to be launched at an online webinar on 16 July.
Transition challenge
The report finds that around 309 CHP installations operate across the public sector, with around 70% located within healthcare settings. Approximately three-quarters of these systems are expected to reach a replacement decision within the next 10 years, creating what the report describes as a major national transition challenge.
Among its key findings, the report concludes that:
- Gas-fired CHP is no longer the lowest-carbon option. As the UK’s electricity grid continues to decarbonise, CHP has become the highest-emitting replacement option over the long term.
- Despite this, CHP often remains the most economical choice under current electricity and gas prices, creating a difficult balance between affordability and decarbonisation.
- Replacing CHP is more complex than replacing a heating system alone. Organisations must also consider electricity demand, grid capacity, resilience, future operating costs and wider estate strategies.
- Planning ahead is essential. Developing and delivering a low-carbon replacement can take three to five years, particularly where electricity network upgrades are required. Organisations that delay planning may find their options limited and default to another gas-fired CHP installation.
The report also highlights the growing pressure on the UK’s electricity networks. Replacing CHP with electrically powered heating technologies, such as heat pumps, can significantly increase a site's electricity demand, potentially requiring new grid connections or infrastructure upgrades with lengthy lead times.
Rather than recommending a single replacement technology, the research encourages organisations to adopt long-term energy master planning, engage early with network operators and consider phased or hybrid approaches where appropriate.
For organisations managing complex estates, including hospitals, universities and other public sector facilities, the report provides valuable evidence to support future investment and estate planning decisions.
Webinar
Energy Systems Catapult will discuss the report’s findings during a webinar on 16 July, providing an opportunity to hear more about the research and the implications for public sector organisations. The session will also offer attendees the chance to ask questions and explore the challenges and opportunities identified in the report.
