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Government defends its position on CHP

The Government has responded to industry criticisms that targets to increase good quality CHP are “unrealistic” and “unachievable”.

Last week the Environment Standards Association see letsrecycle story and the Paper Federation
see letsrecycle story attacked the Government’s plans to increase – almost by doubling, good quality Combined Heat and Power (CHP) capacity to at least 10,000MWe by 2010.

In addition to this, the Paper Federation claimed that DEFRA’s proposals as set out within its public consultation draft, “The Governments Strategy for Combined Heat and Power – Public Consultation Draft” are anachronistic, based on the situation within the CHP marketplace in 1995-2000, “when investment in CHP was more favourable and the economic climate for it was riper”.

DEFRA defended its position, however by stating it had confidence in meeting the 10,000 MWe target, and that independent research revealed this would be the case.

A spokeswoman for DEFRA said: “The Government has commissioned modelling work from Cambridge Econometrics to provide independent evaluation of the effect of a number of support measures on the growth of CHP installed capacity to 2010.

“By modelling various energy price scenarios, Cambridge Econometrics suggest that installed CHP capacity will reach 9,300 – 10,300 MWe by 2010 (base case 9,950 MWe), indicating that the range of Government measures introduced are likely to help set the sector on course to meet the 2010 target.” She continued: “Furthermore, additional capacity that may derive from the Climate Change Agreement renegotiations is not included. This gives further confidence that the 10,000 MWe target is within reach.”

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