Combined heat and power quality assurance (CHPQA) standard
Summary
DESNZ publishes the CHPQA Standard that sets Quality Index thresholds for Combined Heat and Power plants to qualify for 'Good Quality' certification. Different versions apply based on when schemes commenced operation or entered CfD contracts, with Issue 7 (December 2018) applying to CfD schemes, Issue 6 (September 2016) to schemes operating from 2016, and Issue 5 (November 2013) to earlier schemes. The Standard determines eligibility for various benefits excluding Renewables Obligation and Contracts for Difference support.
Why it matters
This creates a tiered certification system where newer CHP schemes face different efficiency standards than existing ones, potentially favouring incumbents with grandfathered lower thresholds. As such, the fragmented approach across multiple standard versions complicates investment decisions and creates regulatory uncertainty about which rules apply.
Key facts
- •Issue 7 applies to CfD schemes from December 2018
- •Issue 6 applies to schemes operating from 1 January 2016
- •Issue 5 applies to pre-2016 certified schemes
- •Issue 8 COVID easement expired and removed
- •Standards exclude RO and CfD eligibility determination
Areas affected
Related programmes
Memo
The CHPQA Standard sets out the CHPQA methodology, definitions, QI thresholds, and criteria for ‘Good Quality’ CHP certification. It specifies different Quality Index ( QI ) formulae for the purposes of determining Good Quality CHP certification and eligibility for benefits other than those from the Renewables Obligation and Contracts for Difference. The Standard should be read in conjunction with the supporting CHPQA Guidance Notes , which provide detailed information on how this Standard will be interpreted by government departments and agencies, as well as guidance on compliance with this Standard. The Standard should be subject to minimum change; developments in the application of the Standard will, whenever possible, be reflected in changes in the Guidance Notes. The Standard does not address issues relating to the use of CHPQA for determining eligibility for fiscal benefits. For these matters, reference should be made to the CHPQA Guidance Notes and, where necessary, the appropriate government department. CHPQA Standard – Issue 7 (December 2018) CHPQA Standard Issue 7 applies to CHP schemes that have entered into a Contract for Difference ( CfD ). Schemes should refer to Guidance Note 44 (GN44) (Issue 7) when applying CHPQA Standard Issue 7. CHPQA Standard - Issue 6 (September 2016) CHPQA Standard Issue 6 first applied to the 2017 certification of new Schemes based, as appropriate, on the design or operational data for the year commencing 1 January 2016. CHPQA Standard - Issue 5 (November 2013) CHPQA Standard Issue 5 first applied to the 2015 certification of new Schemes based, as appropriate, on the design or operational data for the year commencing 1 January 2014. Which CHPQA Standard Quality Index formulae to use CHPQA Standard Issue 7 applies to any CHP scheme in respect of which a CfD contract is entered into on or after the publication of Issue 7 of GN44 CHPQA Standard Issue 6 applies to New CHP schemes commenced operation from 1 January 2016 CHPQA Standard Issue 5 applies to all CHP schemes that received CHPQA certification prior to 1 January 2016 CHPQA Standard – Issue 8: March 2021 (expired and removed) CHPQA Standard Issue 8 easement only applied for certification in 2021 in respect of 2020 year of operation due to COVID.