Combined Heat and Power (CHP)

CHP is an approach to optimizing overall energy consumption in institutional, commercial and industrial operations. It does so by efficiently combining the separate systems for supplying electric power and thermal power (heat) at the customer’s facility into a single energy system. The natural gas supply, which traditionally produces just heat, is used instead to generate both heat and power (electricity) and, in the process, lowers overall energy costs.

For instance, when the electricity price (market price with Global Adjustment) is high, the CHP system will self-generate electricity and create heat. When the electricity price is below the cost of self-generation, the system creates heat and accepts power from the grid. This “co-generation” capability can, by the same principles, be extended to “tri-generation”, which incorporates cooling with heat and power.

The business case for CHP is also built on there being no “line losses”. In grid systems, these losses can approach 10 percent of the cost of electricity supplied, depending on the specifics of the transmission and distribution utilities

CHP User Benefits

  • Decreased energy costs
  • Enhanced energy resiliency
  • Reduced risk from uncertain energy prices
  • Increased economic competitiveness

What incentives are available for CHP right now?

Until July 1, 2018 under Ontario’s saveONenergy programs, CHP systems are eligible for funding of both detailed engineering studies to determine feasibility and significant up-front project capital incentives. To qualify for this incentive applications must be filed and accepted prior to that date.

The project incentive, under the Process and System Upgrade program, is equal to the lesser of 40 percent of the project cost or the accumulated total of $0.20 per kilowatt-hour (kWh) of annual electricity savings. If the incentive is less than $1 million, which would be the case for a greenhouse, the measurement and verification term is just one year.

The detailed engineering study can be awarded for up to $50,000.

If you would like to learn more or find out is this is the right solution for you please call 905-723-4626 ext 5333.

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