Economics and financial support [CHP]

The fundamentals of capital investment projects is widely understood. The aim of this paper is to focus on some of the more specific areas relating to combined heat and power (CHP) projects and look at how the overall package is put together, including some of the technical and commercial areas that need to be considered. In particular, it focuses on third party involvement in the development and financing of a CHP project. The successful financing of a CHP project requires a full understanding of the commercial and engineering aspects. Whilst a project can be successfully delivered by following the in-house route, a third party can provide a flexible and attractive package whilst removing many of the risks associated with pursuing the in-house route