Rising energy costs and the need to reduce CO₂ emissions mean that an increasing number of industrial companies are considering the implementation of high-efficiency cogeneration. This solution offers an attractive alternative to conventional, separate methods of generating electricity and heat. In this article, we explain how cogeneration systems can help reduce energy costs in industrial facilities, and we discuss the possibility of claiming a guaranteed subsidy as well as the benefits of reducing CO₂ emissions.
Cogeneration is a technology that involves the simultaneous production of electricity and heat in a single process. In practice, this means that fuel (e.g. natural gas, biogas) powers an engine, and the heat generated in the process – rather than being wasted – is recovered and used, for example, for heating, industrial processes or steam generation.
This process significantly increases the efficiency of the entire system (often to 80–90%), which translates into lower fuel consumption, reduced energy costs and lower CO₂ emissions compared to the separate production of electricity and heat.
Let’s analyse the cost-effectiveness of investing in CHP
We will use a combined heat and power unit with an electrical output of 1 MW and a thermal output of 1.1 MW as the basis for our cost-benefit analysis, and we will compare this with obtaining the same amount of electricity from the power company and heat from an on-site boiler house.
In the example we are analysing:
- the electrical output of the unit is 1.0 MWe,
- thermal output: 1.1 MWt,
- the efficiency of electricity generation is 42%.
We assume that the unit operates for 8,000 hours per year and consumes approximately 2.4 MWh/h of natural gas during this time. The cost of purchasing gas is PLN 180/MWh. Added to this are distribution costs of PLN 35/MWh. In total, this amounts to approximately PLN 215/MWh.
We calculate the annual gas costs by multiplying the generator’s operating hours by the natural gas consumption and the purchase price of the fuel:
8,000 h/year × 2.4 MWh/h × PLN 215/MWh = PLN 4.13 million
The annual costs of purchasing gas fuel (natural gas) to power a cogeneration system with an electrical output of 1.0 MWe and a thermal output of 1.1 MWt amount to approximately 4.13 million PLN.
Every user of a cogeneration system must realise that it requires professional maintenance and regular inspections to ensure the best possible availability and efficiency of the installed system. For maintenance, an amount of approximately PLN 200,000 should be assumed (this is an average calculated on the basis of an analysis of several years of unit operation, taking into account the inspections required during that time, together with the replacement of spare parts). After adding this amount, the annual operating costs of the cogeneration unit will amount to approximately PLN 4.33 million.
For PLN 4.33 million per year, the cogeneration system will generate 8,000 MWh of electricity and 8,800 MWh of thermal energy in the form of process steam and heating water for the plant
We will now calculate the costs of obtaining the same amounts of electricity and heat using conventional methods. In this analysis, we will assume the B23 electricity purchase tariff, which is PLN 510/MWh, to which we will add distribution costs of PLN 170/MWh. This gives us a total of PLN 680/MWh, and when translated to a working year (8,000 hours), this amount will be PLN 5.45 million. The annual cost of generating 1.1 MWh of heat from gas fuel, at the price of PLN 215/MWh given above, is PLN 2.1 million.
We add up the costs of purchasing electricity and the costs of generating heat using conventional methods, which gives us a total of approximately PLN 7.55 million per year.
When generating the same amount of electricity and heat using a cogeneration system, the costs will amount to PLN 4.33 million per year. Using a cogeneration system generates savings of PLN 3.2 million per year.
Guaranteed premium – additional revenue for companies investing in cogeneration
Under the Act of 10 January 2019, energy generation in high-efficiency cogeneration is covered by a guaranteed premium scheme, which in 2026 amounts to PLN 143 per MWh. For an annual production of 8,000 MWh, this represents additional revenue of PLN 1.14 million. The total annual benefits from cogeneration are therefore:
- savings on energy purchases: approx. PLN 3.2 million,
- guaranteed premium: approx. PLN 1.14 million,
- total: approx. PLN 4.3 million, which corresponds to a reduction in energy purchase costs of around 57%.
|
Comparison for 1000 kW of electricity and 1100 kW of heat |
|
|
With CHP |
In a traditional way |
|
CHP with 1,0 MWe and1,1MWt Gas demand: 2,4 MWh/h Costs of gas demand 2,4 x 8000 h x 215 zł/MWh = 4.130.000 zł Annual service costs 200 000 zł Total operating costs of CHP unit 4.130.000 zł + 200.000 zł = 4 330.000 PLN |
energia elektryczna – zakup ZE (taryfa B23) Annual electricity costs Costs of purchasing electricity 1,0 MW x 8.000h x 680 zł = ok . 5.450.000 PLN Annual costs of heat Cost of heat production 65,0 zł/GJ (240,0 zł/MWh) 1,1 MW x 8.000 h x 240 zł = 2.100.000 zł Total costs of electricity and heat |
|
Savings from energy production in CHP : 7.55 mln zł – 4.33 mln zł = 3,2 mln zł Guaranteed premium: ( 8000 MWh * 143 zł/MWh = 1 .14 mln zł) Annual savings: 3.2 mln zł + 1.1mln zł = 4,3 mln zł (costs energy reduction about 57%) |
|
Decyzja o inwestycji kogeneracyjnej - korzyści środowiskowe
Investments in a cogeneration system should not be viewed solely through the prism of financial savings. Increasingly stringent environmental regulations, the drive towards climate neutrality and the decarbonisation process mean that technologies based on sustainable development and renewable energy sources are becoming increasingly important in business operations.
In this context, cogeneration offers a solution tailored to the needs of modern facilities. It enables efficient on-site energy generation, using less fuel than separate production of electricity and heat. At the same time, it contributes to a significant reduction in CO₂ emissions (by up to 60%), as well as other greenhouse gases.
As a result, a business can more easily meet growing environmental requirements, improve its image and increase its chances of securing support through grant schemes. A major advantage of CHP systems is also that they enhance energy independence and improve the operational reliability of the facility, which is becoming increasingly important in today’s world.
If you are considering investing in cogeneration, please call 12 398 74 03 or email: oze@ces.com.pl
Here you will find more information on cogeneration technology and the capacity of the CHP modules we offer:
