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CHP/DHC Benefits > Capital Investment
Capital Investment Costs
Substantial investment will be needed to meet future electricity
demand in both scenarios, but the total investment is lower in
the Accelerated CHP case. There is a 3% reduction in overall
costs by 2015 (USD150 billion), which climbs to 7% (USD795 billion)
by 2030. They are achieved through:
- Savings in T&D network investment – since CHP generates electricity
at the point of use, the requirement for T&D
is reduced as CHP market share increases;
- Savings through a significant reduction in non-CHP generation.
The capital cost of new CHP investment is lower than the average
capital cost of the central generation plant that is displaced.
In addition, since greater use of CHP reduces T&D
network energy losses, it also reduces the overall amount of generating capacity
required to meet a given amount of demand.
To put this into context, the projected saving of USD795B by 2030 corresponds to:
- Projected investment in new US generation capacity required by 2030;
- Projected T&D investment required in Europe by 2030;
- Triple the projected total power sector investment required in Japan by 2030.
