Combined Heat and Power (CHP)

Also known as “cogeneration”, CHP is self-production of electricity on-site, with beneficial recovery of the heat byproduct from the generator. Common CHP equipment includes engine-driven generators, microturbines, steam turbines, and fuel cells. Typical CHP customers include industrial, commercial, institutional, and multifamily residential facilities.  CHP systems that are commercially viable at present time are sized approximately 50 kW and above, with numerous options in blocks grouped around 300 kW, 800 kW, 1,200 kW, and larger.  Scaled-down systems, suitable for an individual single-family residence, referred  to as “MicroCHP” (with typical size range 1-5 kW), are under development and beginning to appear in limited numbers in early field trials. Micro CHP systems may someday become common household appliances, although they are not expected to make sizable contributions to the landscape in the near term.  Typically, CHP systems are used to produce a portion of the electricity needed by a facility some or all of the time, with the balance of electric needs satisfied by purchase from the grid.

NYSERDA’s CHP program promotes cleaner and more-efficient electrical power generation, heating and cooling for buildings, and industrial processes.  This program leads by providing technical assistance and incentives to energy users, gathering data and assessing trends to help formulate future energy policy.

The CHP demonstration projects assist in installing equipment at end-user sites to address power generation, availability, reliability, and quality needs of New York State energy customers while emphasizing energy efficiency and environmental quality. These projects are expected to result in direct energy, environmental, and economic benefits such as peak electric demand reduction, higher fuel-use efficiency, emissions reductions, and lower energy costs. 

In the first six years since the program began in 2000, NYSERDA has invested over $50 million and has gained extensive experience that can help guide CHP marketplace participants to install systems faster/better/cheaper, and inform policymakers in addressing institutional hurdles.  A similar level of funding continues to be available at the present and in the future.

This wealth of knowledge is intended to be shared with stakeholders through personal interactions, conferences, and reports.  Dozens of reference documents are provided on the following pages, and are catalogued into five main groupings as follows:

1. What is CHP? How does it work? Why is it good? How do you assess its economics?
2. The market potential for new CHP in NYS
3. Hurdles to implementing CHP in NYS; public policy considerations
4. Support programs that encourage CHP (Including NYSERDA funding opportunities)
5. CHP success stories in NYS and CHP project performance data 

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© 2004 New York State Energy Research and Development Authority