Combined Heat And Power (CHP): An Efficient Way to Generate Electricity and Useful Thermal Energy
Combined Heat And Power (CHP): An Efficient Way to Generate Electricity and Useful Thermal Energy
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What is Combined Heat And Power (CHP)?
Combined heat and power (CHP), also known as cogeneration, is an efficient, clean technology that generates electricity and useful thermal energy from a single fuel source. Instead of purchasing electricity from the grid and burning fuel separately for heating and cooling needs, CHP efficiently captures and utilizes heat that would otherwise be wasted in conventional power generation to meet both electric and thermal loads. This provides significant energy cost savings compared to separate generation of electricity and thermal energy.
How CHP Systems Work
Combined Heat And Power (CHP) consists of a fuel source like natural gas or biomass which is burned to heat water or another working fluid in a combustion chamber. The hot exhaust gases are then used to produce steam. This high pressure steam then powers a steam turbine which drives an electrical generator to produce electricity. Heat recovered from engine cooling systems and exhaust is recycled to provide useful thermal energy, such as steam or hot water, for space heating, domestic hot water, or industrial processes. CHP systems range in size from 30 kW to over 100 MW of power generation capacity, depending on the application.
Electricity Generation Benefits
Compared to conventional separate generation of electricity and thermal energy, CHP systems can achieve overall system efficiencies as high as 80-90% by capturing waste heat. This efficiency benefit reduces the amount of fuel required to produce both electricity and thermal energy for a given demand. Lower fuel requirements also reduce carbon dioxide and other emissions compared to separate systems. Higher system efficiencies help utilities, commercial building owners and industrial facilities lower operational costs and gain long-term cost stability by reducing grid electricity purchases.
Thermal Energy Benefits
In addition to electricity generation, CHP systems provide on-site thermal energy to meet heating and cooling needs. Capturing waste heat that would otherwise be exhausted enables CHP systems to serve as an on-site boiler system. This eliminates the need to purchase steam or thermal energy from external resources and reduces distribution losses associated with transporting thermal energy through pipelines. On-site thermal energy generation also provides higher reliability and resiliency compared to grid electricity alone in meeting critical thermal needs.
Application in Various Sectors
The ability to generate both electricity and thermal energy efficiently from a single fuel source makes CHP applicable across many sectors where there are simultaneous needs for power and heat. Major CHP applications include:
- Commercial Buildings - CHP systems provide reliable on-site electricity and thermal energy for large office buildings, hospitals, universities, shopping malls and more by meeting year-round heating and cooling loads through absorption chillers.
- Industrial Facilities - Process industries like food and beverage, chemicals, refining and paper manufacturing use CHP for base load electricity needs while also utilizing recovered heat for steam generation and process heat.
- District Energy Systems - Some cities have centralized CHP plants that feed into district thermal pipelines to provide heating and cooling to numerous downtown buildings from a single source.
- Healthcare Facilities - Critical facilities like large hospitals rely on uninterrupted CHP power and steam to ensure constant thermal energy for sterilization and meet stringent reliability requirements for critical patient care equipment.
Environmental Benefits of CHP
CHP systems help reduce emissions of carbon dioxide (CO2), nitrogen oxides (NOx), sulfur dioxide (SO2) and particulate matter compared to conventional separate generation of electricity and thermal energy. By using one fuel source more efficiently, CHP requires less fuel combusted overall to satisfy the same energy demands. Estimates indicate that widespread use of CHP could cut U.S. power sector CO2 emissions by over 20%. CHP systems are also more stable and less impacted by intermittent renewable resources like wind and solar when paired with energy storage.
Policy and Regulatory Environment
In many regions and countries, policies and incentives aim to promote increased adoption of CHP to realize energy savings, emissions reductions, and grid reliability benefits. Examples include investment tax credits, production tax credits, reforms to standby rates and interconnection policies, capacity markets, and renewable portfolio standards that recognize CHP as an eligible technology. The public sector has also led by example with federal CHP installation targets for agencies, and by incorporating CHP in building codes and guidelines.
CHP technology continues to advance and become more modularized for distributed applications, adoption is expected to grow across key market segments that value efficiency and resiliency. Microgrids which integrate CHP, renewable energy, and energy storage offer new opportunities for industrial and institutional customers seeking ultra-high reliability. Additional CHP growth is projected in areas including renewable natural gas fuel cells and waste heat recovery from engine exhaust. Wider deployment of smart grid enabled "CHP-friendly" technologies will help maximize the benefits this versatile technology provides to electricity customers and the power grid.
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