What are the benefits of a combined heat and power (CHP) system?

Combined Heat and Power System

A combined heat and power (CHP) system, or cogeneration, is the use of a heat engine or power station to simultaneously generate electricity and heat. The economic benefits of CHP for hospitals or universities can include:

  • Reduced energy costs: the high efficiency of CHP technology can result in energy savings when compared to conventional, separately purchased power and onsite thermal energy systems. 
  • Offset capital costs: CHP can be installed in place of boilers or chillers in new construction projects, or when major heating, ventilation, and air conditioning (HVAC) equipment needs to be replaced.
  • Protection of revenue streams/reliability: Through onsite generation and improved reliability, CHP helps critical infrastructure to remain online in the event of a disaster or major power outage.
  • Hedge against volatile energy prices: CHP can provide a hedge against unstable energy prices by allowing the end user to supply its own power during times of high electricity costs.
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