Combined heat and power and Energy in buildings

Energy flows from energy in buildings to combined heat and power; energy flows from combined heat and power to energy in buildings; their prices have moved together.

Combined heat and power (energy) and Energy in buildings (energy): 3 relationships.

How they are linked

1. Energy flow

Physical flow · Direct · Energy in buildings → Combined heat and power

Micro-CHP units heat and power homes.

2. Energy flow

Physical flow · Direct · Combined heat and power → Energy in buildings

CHP heat warms buildings.

3. Price link: power value

Cost and price · Weak · Both ways

CHP is worth more where grid electricity is dear, since each unit made on site is a unit not bought. The equipment proxy shows no link with the electricity price, at -0.04 monthly, as tariffs change slowly and turbines are priced on orders.

• -0.04 monthly change correlation
• 0.27 12-month change correlation
• 0.74 fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.