Solutions for EFFICENT Energy

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Combined Heat and Power

Combined Heat and Power (CHP) systems—also known as cogeneration—are a forward-thinking approach to facility energy that simultaneously produces electricity and useful heat from a single fuel source. By capturing and recycling heat that would otherwise be wasted in traditional power generation, CHP dramatically increases energy efficiency, reduces fuel costs, and minimizes environmental impact. This proven technology not only lowers operating expenses and carbon emissions but also delivers reliable, resilient power for businesses, institutions, and critical infrastructure seeking smarter, more sustainable energy solutions.

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WHAT IS COMBINED HEAT AND POWER?

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Combined Heat and Power: Smarter, Sustainable Energy for Your Facility

Combined Heat and Power (CHP), also known as cogeneration, is an advanced, proven solution that generates electricity and recycles the resulting heat for immediate use in heating, hot water, or industrial processes. By capturing heat that would otherwise be wasted, CHP systems transform efficiency and sustainability outcomes for modern facilities.

CHP units can run on a range of fuels—natural gas, oil, biomass, coal, or newer, renewable energy sources like hydrogen—delivering unmatched flexibility in energy management. This approach is increasingly vital for businesses, campuses, and institutions committed to reliability, resiliency, and sustainability.

CHP: COMPONENTS

How Does a CHP System Work?

A typical CHP system combines several essential components working together to maximize fuel use and efficiency:

  • Prime Mover: Converts fuel into mechanical energy (via reciprocating engine, gas turbine, steam turbine, or fuel cell)
  • Generator: Transforms mechanical energy into electricity
  • Heat Recovery System: Captures and repurposes otherwise wasted heat for productive uses
  • Control Systems: Optimize and regulate output, performance, and operational flexibility
  • Electro-Mechanical Interconnection: Delivers generated power to onsite electrical loads or the utility grid
  • Optional Storage: Retains excess thermal energy for later use, boosting efficiency

Some CHP installations also integrate emissions controls or weather-resistant enclosures for added safety and compliance.

CHP EXAMPLE DIAGRAM

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INDUSTRIES USING CHP

Where is CHP Used?

CHP excels in settings with significant, simultaneous demands for both electricity and thermal energy. These include:

  • Industrial Plants: Chemical producers, refineries, pulp and paper, food processing, and metals facilities
  • Institutions: Hospitals, colleges and university campuses, research centers, military bases
  • Commercial Buildings: Hotels, office complexes, large residential buildings
  • Municipal Utilities: District energy providers, wastewater treatment plants, city infrastructure

CHP helps these sectors achieve robust energy reliability, operating cost savings, and a lower carbon footprint year-round.

Typical CHP System Sizes by Facility Type

Facility Type
CHP System Size

Chemical/Petroleum Refinery

20–300+ MW

Metals & Food Processing

5–50 MW

University/College Campus

~10 MW

Hospital

3–10 MW

Office/Hotel

0.5–5 MW

Small/Modular Commercial

<1–5 MW

CHP technology is best suited for applications with substantial and simultaneous power and thermal loads, enabling businesses and institutions to enhance energy reliability, sustainability, and operating efficiency.

CHP EFFICENCY

Combined Heat and Power (CHP) systems far surpass traditional electricity generation in efficiency by capturing and reusing heat that would otherwise be lost. Conventional fossil-fueled power plants typically achieve average efficiencies of 35–50%, meaning more than half of the fuel consumed is wasted as heat discharged to the atmosphere. In contrast, CHP systems routinely deliver total system efficiencies between 65–80%, with some installations reaching up to 90%, resulting in significantly lower fuel use and operating costs for the same energy output.

Fuel Efficiency Comparison

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CO2 Emmissions Comparison

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CHP FINANCING

Flexible Financing and Incentives

TPI Efficiency offers expert guidance to help navigate a range of CHP financing options, making project adoption achievable for businesses of any size:

  • Direct Ownership & Loans: Secure complete system control and capture all available incentives
  • Third-Party Ownership/Leasing: Reduce or eliminate upfront capital through Power Purchase Agreements (PPA) or equipment leases, with predictable energy costs
  • Grants & Technical Assistance: Access federal/state grants, utility incentives, and project planning support
  • Tax Credits & Depreciation: Benefit from federal and state credits (e.g., a 10% federal credit) and accelerated depreciation (100% first-year deduction in many cases)
  • PACE and ESCO Models: Repay via property taxes or from generated savings, ideal for cash-flow conscious upgrades

These options can be tailored or combined to fit unique business needs, supported by ongoing technical assistance and evolving incentives in 2025.

How Are CHP Systems Sized?

Proper sizing is essential to optimize efficiency and return on investment:

  • Collect Data: Track at least one year of hourly or interval data for both electricity and heating demand
  • Determine Base Load: Identify the minimum, consistent loads to maximize runtime
  • Match Heat-To-Power Ratio: Choose a CHP system that matches the facility’s simultaneous thermal and electric needs
  • Model Demand: Use load profiles to tailor the system—avoid sizing only for peak load
  • Consider Modularity: Multiple smaller units can adapt to variable demand better than a single extensive system.

Example formula:

  • CHP size=minimum continuous load×CHP heat-to-power ratio

This ensures optimal operation, supporting maximum energy savings and reliability.

TURNKEY SOLUTIONS FOR CHP

Why Partner with TPI Efficiency for CHP?

  • Independent expertise with a vendor-neutral approach
  • Turnkey support from project analysis to incentive maximization
  • Customized system design, financing, and implementation for every sector
  • Proven experience delivering resilience, savings, and environmental benefits

Ready to explore Combined Heat and Power for your facility?

Contact TPI Efficiency today and let’s build your energy advantage.

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SUSTAINABLE SOLUTIONS

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Energy Management Services

TPI consultants will review your spend and give you options to optimize your facilities’ energy consumption.

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With lower costs and government incentives for renewable electricity generation, solar and wind generation is increasing across the globe.

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Thermal energy Storage

TPI Efficiency offers a comprehensive range of electrical solutions for various commercial and industrial needs.

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Our experts will look at energy and usage rates as part of our risk-free audit. And we will advise of local, state, and federal incentives along with assessing your rooftop and solar field options.

Solutions for Reliable Electricity

TPI's Microgrid Solutions

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Microgrids deliver flexible solutions for energy resilience, sustainability, and reliability across a spectrum of community, institutional, and commercial/industrial needs.

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Let's Craft Your Strategic Blueprint for Sustainability

At TPI Efficiency, we provide the strategic blueprint and expertise to help you meet your sustainability goals, comply with regulations, and exceed stakeholder expectations worldwide. Our team includes HVAC engineers, building surveyors, renewable energy specialists, and other subject matter experts dedicated to your success.