# Combined heat and power and Natural gas

Their prices have moved together.

Source page: https://www.materialinsights.org/links/combined-heat-and-power-and-natural-gas/

[Combined heat and power](https://www.materialinsights.org/energy/e_chp/) (energy) and [Natural gas](https://www.materialinsights.org/energy/natural_gas/) (energy): 1 relationship.

## How they are linked

### 1. Price link: main fuel

*Cost and price · Weak · Both ways*

Most CHP runs on natural gas, so gas prices set running costs and the spark spread. The turbine proxy does not follow gas, with monthly moves correlating at 0.04, because equipment prices are set by makers' order books, not fuel markets.

- **0.04** monthly change correlation
- **0.00** 12-month change correlation
- **0.03** fitted elasticity

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