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Glossary
Combined heat and power plants

Combined heat and power (CHP) plants are an efficient technology for the simultaneous generation of electricity and heat. In Austria, they play an important role in promoting decentralised energy supply and climate protection.

10/17/2024

Combined heat and power (CHP) plants are a key technology for the simultaneous generation of electricity and heat in a single process known as cogeneration. This technology significantly increases energy efficiency, as the waste heat generated during electricity production is not left unutilised, but is used directly to heat buildings or for industrial processes. In Austria, where climate protection and energy efficiency are increasingly taking centre stage, combined heat and power plants play an important role in reducing CO₂ emissions and supporting the expansion of renewable energies.

CHP units are used both in private households and in larger industrial plants. Smaller combined heat and power units, known as micro CHP units, are particularly suitable for single-family homes or smaller apartment blocks where both electricity and heat are required. In rural regions of Austria, they are used in local heating networks, where several households are supplied with heat and electricity from a central CHP unit. These decentralised systems contribute to independence from large central energy suppliers and promote regional value creation.

A particular advantage of combined heat and power plants is their flexibility with regard to the fuels used. In addition to fossil fuels such as natural gas, CHP units can also be operated with renewable energy sources such as biogas, wood pellets or vegetable oil. This makes them particularly attractive in the context of the Austrian energy transition, which is focussing on the increased use of renewable energies. The use of biogas in combined heat and power plants is already widespread in Austria, as the country has a well-developed biogas infrastructure.

At European level, combined heat and power generation and the use of CHP units are also being strongly promoted. The European Union sees CHP technology as an important instrument for increasing energy efficiency and reducing dependence on fossil fuels. As part of the European Green Deal, which aims to make Europe climate-neutral by 2050, CHP plants play a central role, particularly in regions where the integration of renewable energies is difficult to realise. The use of CHP units can optimise energy consumption and support the use of renewable energies.

Another important aspect of CHP plants is their ability to support grid stability. In times when the proportion of renewable but weather-dependent energies such as wind power and solar energy is increasing, flexible generation units such as CHP units are of great importance. They can react quickly to fluctuations in electricity generation and therefore play an important role in stabilising the electricity grid. In Austria, they could contribute to security of supply, particularly in conjunction with smaller decentralised electricity grids in remote regions.

Despite their many advantages, there are also challenges to the widespread introduction of CHP units. The use of fossil fuels in many CHP plants means that they can only be considered environmentally friendly if they switch to renewable fuels. However, efforts are underway in Austria to expand the promotion and use of biogas and other climate-neutral fuels in order to fully utilise the efficiency potential of CHP units.

To summarise, it can be said that combined heat and power plants will play an important role in the future energy market in Austria and Europe. Their ability to generate both electricity and heat efficiently and their flexibility in terms of fuels make them an important building block for a sustainable and decentralised energy supply. With the increasing integration of renewable energies, their importance for grid stability and the reduction of CO₂ emissions will continue to grow.

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