21 May 2014: Major environmental and security benefits are possible from integrating electrical and thermal energy systems, according to a study conducted by the International Energy Agency (IEA). The report, titled ‘Linking Heat and Electricity Systems: Co-generation and District Heating and Cooling Solutions for a Clean Energy Future,’ finds that the conversion efficiency rate of co-generation, or combined heat and power (CHP), averages 58 percent, compared to 38 percent for conventional thermal power plants.

The study further estimates that CHP, or other efficient power sources, combined with district heating and cooling (DHC) systems can generate five to ten fold increases in heating and cooling efficiency over traditional electricity-driven equipment. Despite these potential benefits, the IEA finds that co-generation has remained at 10 percent global electricity since the year 2000, after falling from 14 percent in 1990.

The report identifies various barriers to linking thermal and electricity systems, including pricing in local energy markets, lack of long-term energy policies and poor strategic planning. Six case studies illustrate how CHP and DHC work in Mexico, Spain, Scotland, Denmark, France and Saudi Arabia.

Based on these findings, the report offers policymakers recommendations for overcoming barriers to deployment through policies that support cost-effective selection of technologies, economic feasibility of CHP and DHC projects and integration of CHP and DHC networks in sustainable energy systems. [IEA Press Release] [Publication: Linking Heat and Electricity Systems]