Combined Heat and Power (CHP)

What is Combined Heat and Power?

Combined heat and power (CHP), also called cogeneration, is the simultaneous production of
electrical and thermal energy from a single fuel source. CHP systems are a group of distributed
generation technologies capable of capturing heat that would otherwise be emitted into the
atmosphere during the electric generation process and redirecting it for a useful purpose.

Traditionally, generation of electricity and heat has been a mutually exclusive process. However,
by generating heat and power in a combined process, CHP systems are more cost effective,
reduce greenhouse gas ( GHG) emissions and provide more efficient use of natural resources.
The efficiency levels of CHP technologies vary depending on the size and type of system, with
CHP technologies typically achieving efficiency levels of 60-80% (compared to ~45% for
separate generation).

How CHP works

In Combined Heat and Power, the waste heat produced in a plant facility is utilized in other
industrial processes, extracted to cover the heat demand of individual buildings, or exported to a
district heating system. CHP plants are typically based on gas and/or steam turbines in simple or
combined cycle configuration. In simple cycle, the waste heat generated by a gas turbine is
captured in a heat recovery steam generator (HRSG) or waste heat recovery boiler (WHRB) and
used for heating or to produce process steam. In combined cycle CHP it is initially used to fuel a
second turbine producing additional power.

Benefits of CHP

 Reduces utility costs and improves economic competitiveness

 Increases power reliability and self-sufficiency
 Reduces GHG emissions and other pollutants
 Reduces demand for imported energy supplies
 Capable of operating on renewable or nonrenewable resources
 Suite of proven, commercially available technologies for various applications
 Additional financial incentives through the feed-in-tariff, Self-Generation Incentive Program (
SGIP) and investment tax credits available for eligible customers

Types of CHP Systems

CHP systems are identified by the system’s prime mover, the device that powers the generator.
CHP systems can be further characterized either as topping-cycle or bottoming-cycle generation.
Topping Cycle CHP

Topping-cycle systems produce electricity first, then recover the excess thermal energy for
heating or cooling applications

Bottoming Cycle CHP

By contrast, bottoming-cycle systems, also known as “waste heat to power,” are a process
whereby waste heat from an existing process is used to produce electricity. Both topping- and
bottoming-cycle systems are types of cogeneration.

Technologies Eligible for the SGIP

 internal combustion engine

 mircoturbine
 gas turbine
 fuel cell
 organic rankine cycle turbine*
 steam turbine*

*Organic rankine cycle turbines and steam turbines may only be used in waste heat to power
applications