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Combined heat and power (CHP) is an efficient and clean approach to generating on-site electric power and useful thermal energy from a single fuel source. Instead of purchasing electricity from the distribution grid and burning fuel in an on-site furnace or boiler to produce thermal energy, CHP provides both energy services to a facility in one energy-efficient step.
Combined heat and power (CHP), sometimes referred to as cogeneration, is an efficient and clean approach to generating electric power and useful thermal energy onsite from a single fuel source, offering reliable and affordable energy services to businesses and institutions. Furthermore, CHP provides a cost effective opportunity to improve the environmental footprint and resilience of industrial and commercial facilities across the United States. CHP equipment can be custom-engineered or installed as a predesigned and assembled package. A packaged CHP system is a standardized, pre-engineered system that includes all equipment, piping, wiring, and ancillary components to deliver electricity and thermal energy to a host facility with minimal onsite engineering and design time. Packaged CHP systems can be shipped as single or multiple modules with standard interconnections (e.g., fuel; electrical; thermal—hot water, steam, and/or chilled water), which simplifies installation and reduces the costs associated with the project. Most containerized or single packaged CHP system offerings range from 10 kW to 3 MW in capacity. Packaged CHP systems are extending the operating, efficiency, and emissions benefits of CHP to nontraditional markets in commercial, institutional, multifamily, light manufacturing, government, and military applications. These markets tend to be served by smaller systems (less than 5 MW) that are conducive to pre-engineered packaging and/or modularization. Many of these sectors have limited CHP experience and technical resources to adequately evaluate, install, and maintain onsite CHP systems. The introduction of packaged CHP offerings from experienced CHP Packagers and Solution Providers has accelerated CHP adoption, lowered energy costs, reduced emissions, and strengthened energy resilience in these sectors. In 2019, the US Department of Energy (DOE) launched the Packaged CHP eCatalog to promote increased acceptance of efficient, cost-effective CHP in these applications. The Packaged CHP eCatalog is a web-based, searchable platform that hosts DOE-recognized packaged CHP systems with features designed to reduce economic and performance risks for designers, developers, owners, and facility operators interested in installing CHP. DOE established the Packaged CHP Accelerator at the same time to help launch and publicize the eCatalog, and to validate project performance, cost, and installation time of CHP packages across a variety of applications. Accelerator efforts documented installed cost reductions and installation time reductions of more than 20% for packaged CHP systems over 100 kW compared with custom-engineered systems. The Packaged CHP Accelerator and eCatalog established a peer-to-peer network connecting public and private sector partners including utilities, state energy offices, and energy efficiency program administrators interested in promoting cost-effective, efficient CHP systems, Packagers, and Solution Providers. Feedback from these partners, along with input from DOE’s CHP Technical Assistance Partnerships (CHP TAPs), was critical in understanding the current market for packaged CHP technologies, stimulating investment in these technologies, and guiding future directions for packaged CHP systems and their applications. This report provides background on packaged CHP systems, an overview of their benefits, a profile of current packaged CHP installations, and a summary of future market trends; this report is intended for facility owners, project developers, engineers, policymakers, and other stakeholders looking to increase the adoption of efficient, flexible, and resilient packaged CHP systems.
GE Research and its partner GE Renewables have proposed the use of an interface converter solution to increase the penetration of small to medium-sized CHP (1MWe to 20MWe) into distribution grids and improve their flexibility and grid support capability. Indeed, the proposed interface converter solution thanks to presence of the grid-ready inverter, allows to streamline the compliance to grid codes requirements, reduce the interconnection delays and costs and ultimately one of the main barriers for CHP adoption by commercial and industrial facilities. An additional benefit provided by the interface converter is the use of the grid-ready inverter for reactive power which eliminates the need of sizing the generator for that capability. These two benefits highly favor the economic feasibility of converter-interfaced CHP. Five user cases, each in one of the leading U.S states for CHP potential reported by the DOE in its estimation of the U.S Technical Potential of CHP, were selected to compare the economic performances of converter-interfaced CHP as compared with directly-coupled. They include a college campus in California, a hospital in New York, a water reclamation plant in Texas, a hotel in Minnesota, and a large office building in Pennsylvania. Results showed that, the presence of the interface converter allows to increase the return on investment (ROI) by 0.5 to 2 percentage points in most of the cases (4 of 5). Indeed, the interface converter by shortening the interconnection process allows to accelerate revenues while reducing interconnection costs. Added to the reduced cost of the required generator these savings trade favorably the capital cost of the converter. The analysis also showed that the profitability of the converter-interfaced CHP is highly sensitive to the energy price, interconnection delay, and converter cost. However, it appears that if the interface converter can shorten the interconnection process by at least 6 months, adopting this solution will be more economically viable than directly-coupled configuration in almost all the +23,000 sites of the U.S Technical Potential CHP. The evaluation of the benefits of a converter-interfaced CHP also showed that it enables higher ROI when coupled with other distributed energy resources (DER) such as battery energy systems (BESS) or solar photovoltaic (PV). Indeed, in those scenario, the grid-ready inverter included in the interface converter eliminates the need of separate inverters if DC-coupling is used. On the technical performance, it has been verified that the presence of the interface converter allows to reduce by 70% to 80% the CHP short-circuit contribution to grid faults. This not only reduces the mechanical and thermal stresses exposed to the CHP electrical components but also increases the grid hosting capacity which ultimately enables higher penetrations CHP. Another key benefit of the interface converter validated with hardware-in-the-loop simulations and testing is its superior capability for reactive power support. Indeed, using a power hardware testbed with two +700kW inverters configured in back-to-back, a microgrid controller and actual facilities loads it was demonstrated that the presence of the interface converter can help maintain a power factor near ~1 or regulate the voltage to ~1.0pu at the point of common coupling. This benefit can be highly valuable if in the future, due to higher penetration of renewable distributed energy resources (DER), utilities start billing demand charge based on kVA instead of kW as currently. It was also validated that converter-interfaced CHP can dispatch heat and power commands and seamlessly switch between the two modes while consistently controlling the power factor or voltage at PCC. Indeed, the power hardware testing showed that grid-connected converter-interfaced CHP can follow either the power or heat demand while maintaining a unity power factor at converter output. This research proved that the adoption of an interface converter as the solution for interconnection of CHP system into the distribution grid can greatly improve the economic feasibility of small to medium-sized CHP as well as the plant power quality, flexibility and resiliency. Additionally, it allows increased penetrations of CHP into the distribution grid, extends their grid support capability, and facilitates the integration of BESS and PV DER by streamlining their collocation within the same facilities. This ultimately provides an opportunity for commercial and small industrial facilities in the U.S to accelerate their energy transition thanks to the high energy efficiency of CHP systems and its reliable, flexible, and resilient microgrid operation when interconnected with an interface converter.