Report on United Kingdom
Despite the UK government’s continuous high level commitment to support cogeneration, the level of installed CHP capacity has stayed flat over the past five years. The combined impacts of a liberalised energy market, over-capacity in generation and an unfavourable spark spread have contributed to a sluggish CHP market over the past few years. Government action in the wider energy and climate arena has contributed significant policy uncertainty to the mix. Nevertheless, several policy developments, such as the Renewable Heat Incentive and the greater focus on the decarbonisation of heat, now show real promise to drive further growth in the sector.
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