Commonwealth 245 West Michigan Avenue,
Jackson, MI 49201

Apr 24, 2023

In today’s world, technological advancements and environmental concerns drive the transformation of energy systems into sustainable and efficient ones.

One promising solution is combined heat and power (CHP) technology, which offers high efficiency and potential cost reduction while improving energy supply reliability. This blog post will explore CHP technology, its benefits, and maximizing efficiency.

CHP Efficiencies

CHP systems are highly efficient, with overall efficiencies of up to 75%, compared to the national average of 50% for standalone power generation systems. These systems use waste heat from electricity production for space or hot water heating. As a result, CHP provides the same energy level with less fuel consumption. Moreover, CHP saves costs, reduces greenhouse gas emissions, and increases energy reliability.

To understand how CHP maximizes efficiency, we must grasp the concept of heat rates. Heat rate measures the fuel needed to generate one kilowatt-hour of electricity. CHP systems have lower heat rates than standalone systems as they utilize waste heat to produce additional energy, improving efficiency and cost-effectiveness. With this knowledge, we can design optimal CHP systems for long-term savings.

Tech Integration

Integrating CHP technology into utility operations has dramatically improved efficiency, reducing energy costs and greenhouse gas emissions. CHP systems are suitable for various applications, including institutional power plants, industrial facilities, building energy needs, and hospitals. CHP provides high reliability in these applications, which is crucial for critical applications where power loss can have disastrous consequences.

Implementation and Incentives

Implementing a CHP system requires technical screening of electrical and thermal loads, energy demand, equipment redundancy, and emissions controls. An economic analysis of capital costs, operations and maintenance, savings, revenue, and utility increases follows. While capital costs can be high, green incentives like green bonds, C-PACE, feed-in tariffs, grants, rebates, and tax incentives can facilitate CHP adoption.

Considering the mentioned incentives, selecting the right contracting approach is crucial for successful CHP system implementation. The various types of CHP systems include CTG with HRSG, CTG/HRSG/STG, Boiler with STG, Microturbines, Fuel Cells, and Reciprocating Engine/HRSG. Each system has unique characteristics suitable for different applications. Therefore, the chosen contracting approach will significantly impact the long-term operation and maintenance of the CHP system.

Final Thoughts

Correctly implemented, CHP systems offer an efficient, cost-effective solution for a greener future. Technical considerations include understanding electrical and thermal loads, energy demand, equipment redundancy, and emissions controls. CHP systems can help organizations reduce carbon footprint, lower energy costs, and ensure a reliable energy supply. To learn more about how CHP can help you maximize your efficiency, contact Commonwealth today.

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