Combined Heat and Power: A Consideration for Homeowners and Renters

As all property managers and landlords face the increasing pressures of rising electricity rates and an increasingly unreliable transmission and distribution system, we must ensure that our customers, the tenants, have access to energy sources. affordable and reliable and resistant. Simply put, they have access to the power and heat they need when they need it.

In many cases, our infrastructure relies on a system based on boilers for heat and connections to the electrical grid (with a potential backup generator) for power. However, this approach, as standard as it is, can be greatly improved by exploring combined heat and power (CHP) infrastructure. CHP plants produce electricity and useful heat from a common fuel source, resulting in a highly efficient way of generating power for your facility ‘behind’ the connection to the electrical distribution system.

There are many types of technologies that could be used (reciprocating engine, gas turbine, microturbine, and fuel cell) that a homeowner can explore to reduce their operating costs and provide valuable power continuity in the event of a blackout. That being said, we tend to prefer microturbines for most installations under 1 MW. At this size, the microturbine is truly an apparatus and is modular in nature. A typical unit is the size of a large refrigerator and has a moving part (run on air bearings). This means it can easily be moved into a machine room and not take up a significant amount of ‘rentable’ space. With a noise production lower than the conversation level, the maintenance of this type of equipment is minimal. No longer will you need expensive maintenance contracts that involve removing oil and replacing parts. You won’t have to worry about testing your backup generator every month. The microturbine is designed to run full time, reducing your reliance on grid electricity and providing a thermal source that can be used for hot water or space heating. In the event of an emergency, charging in your building can be prioritized to ensure that your critical functions remain active.

This technology is not new. CHP has been active in the market for more than 25 years. What is new is the pressure that the spark (difference between electric rates and gas prices) puts on the average building owner. Add to this the potential for incentives through CDM (Conservation, Demand Management) funds of up to 40% and suddenly this technology could be much more viable. There are many companies that can do the initial analysis free of charge to determine if you have a financial case for exploring CHP.

If you are looking to replace boilers or are looking into adding/replacing your backup generator, you should take the time to explore if a CHP solution would work for you.