How Cogeneration Work

How Cogeneration WorksMost people are not familiar how cogeneration works. Cogeneration, which is also referred to as Combined Heat and Power (CHP), is the process of deriving two forms of energy, electricity and heat, from a single source.

The energy systems of buildings have been traditionally configured to draw electricity from the grid and to generate thermal and chilling needs on site with boilers, furnaces and chillers. The efficiency of these systems is 35 – 45%.

By converting to cogeneration, the efficiency of a building’s system can be elevated to as high as 80%. This increased efficiency translates into less primary energy inputs needed to deliver the amount of electricity and heat required, and the impacts are significant. Utility bills are reduced by 50% on average, which greatly increases net operating income and frees up capital for other needs.

Property owners would also be ensuring energy resilience because of the cogeneration system’s capacity to run in “island mode” off the grid. During the blackout after Sandy, buildings with cogeneration systems disconnected from the grid and avoided any power loss.

A cogeneration system also has significant environmental benefits. Grid congestion is relieved because much less electricity is drawn from the public utility. The huge increase in efficiency also results in a reduction in greenhouse gas emissions. Our cogeneration system features an exclusive license for technology which not only meets but exceeds CA state emissions requirements, the strictest in the nation.

As a result of these social benefits, many states are currently offering very large energy incentives to make the transition. This makes it possible to finance a cogeneration project completely out of the utilities savings with a 5-6 year payback.

At the heart of the system that HVAC, Inc. designs and installs is a cogeneration module manufactured by Tecogen, a leader in the field.

Cogeneration Benefits