UK DEPARTMENT OF THE ENVIRONMENT
262                                                19 June 1996
 
              LEADING THE WAY - CHP FOR WHITEHALL
           New Strategy for Combined Heat and Power
 
     Government plans to encourage the wider use of combined
heat and power (CHP) were announced in a strategy document
published today by Environment Minister, Robert Jones.
 
     The Minister told a Combined Heat and Power Association
(CHPA) conference that Government objectives were aimed at
establishing a healthy and undistorted market for energy
services, including combined heat and power which will have
long term financial and environmental benefits to customers,
the energy industry and the nation.
 
     He stressed the importance of the development of the sale
of energy services rather than the supply of energy alone.
 
     "The Government's recent annual report on sustainable
development identified energy services as a priority area.  It
is clear that a more integrated and strategic energy services
approach is needed and the industry is well placed to develop
it and the Energy Saving Trust is also available to help, said
Mr Jones.
 
     He said suppliers now recognise clients are not
interested in energy for its own sake, but in the services
which energy provides.
 
    "The UK is on target to meet our commitment to have 5,000
Megawatts of CHP in the year 2000.  New figures, to be
announced shortly by the DTI, show our CHP capacity has grown
to about 3,500 Megawatts on approximately 1,300 sites.
 
     "Whitehall is leading the way with a district heating
system for government offices which is going to save 750,000 
pounds sterling on heating and lighting bills, as well as reduction 
in carbon emissions by 5,000 tonnes a year.
 
     "Government and the regulators can help to set the
framework, but it's how you - the industry - respond to the
opportunities which will determine whether a strong efficiency
based energy market develops," he said.
 
NOTES TO EDITORS
 
CHP Strategy
 
The strategy identifies various measures that Government will
carry out, including:
 
     Supporting OFFER and OFGAS in working towards the
complete liberalisation of the gas and electricity markets,
and to ensuring that the regulatory frameworks do not hinder
the development of local CHP based generation.
 
     Seeking further cost effective opportunities for CHP in
its own estate, particularly via Private Finance Initiative
(PFI), and encourage other parts of the public sector to do
likewise.
 
     Continuing to disseminate good practice and an
independent view on CHP through the Energy Efficiency Best
Practice programme.  In particular, concentrating on sectors
with unrealised potential.  Also, raising the profile of CHP
and Community Heating amongst non-technical strategic decision
makers, and providing support for R&D to facilitate the
introduction of new and improved technologies for CHP.
 
     Using opportunities to promote the technology and inform
decision makers via other environmental and energy management
initiatives.
 
      Promoting the development of waste to energy projects,
particularly as CHP, as an important part of an efficient and
integrated waste management strategy, in recognition that the
use of renewable fuels is a key element of sustainability.
 
     Encouraging the exploration of funding options for
CHP/Community Heating projects, particularly through PFI and
drawing on the compatibility between the benefits of CH and
the objectives of the Single Regeneration Budget Challenge
Fund and other instruments such as the proposed Local Capital
Competitiveness Budget.