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Combined Cooling Heating and Power (CCHP) Solutions

(Source: Department of Energy “Combined Heat & Power Deployment”  http://energy.gov/eere/amo/combined-heat-and-power-basics)

Combined heat and power (CHP), also known as cogeneration, is:

  • A process flow diagram showing efficiency benefits of CHPCHP Process Flow DiagramThe concurrent production of electricity or mechanical power and useful thermal energy (heating and/or cooling) from a single source of energy.
  • Combined Cooling Heating & Power (CCHP) refers to CHP where cooling is also included.
  • A type of distributed generation, which, unlike central station generation, is located at or near the point of consumption.
  • A suite of technologies that can use a variety of fuels to generate electricity or power at the point of use, allowing the heat that would normally be lost in the power generation process to be recovered to provide needed heating and/or cooling.

CHP technology can be deployed quickly, cost-effectively, and with few geographic limitations. CHP can use a variety of fuels, both fossil- and renewable-based. It has been employed for many years, mostly in industrial, large commercial, and institutional applications.

CHP may not be widely recognized outside industrial, commercial, institutional, and utility circles, but it has quietly been providing highly efficient electricity and process heat to some of the most vital industries, largest employers, urban centers, and campuses in the United States.

It is reasonable to expect CHP applications to operate at 65-90% efficiency, a large improvement over the national average of ~50% for these services when separately provided.

The US Department of Energy (DOE) Advanced Manufacturing Office’s provides stakeholders with the resources necessary to identify CHP market opportunities and support implementation of CHP systems in industrial, federal, commercial, institutional, and other applications.

Combined heat and power (CHP) positively impacts the health of local economies and supports national policy goals in a number of ways. Specifically, CHP can:

  • Enhance our energy security by reducing our national energy requirements and help businesses weather energy price volatility and supply disruptions
  • Advance our climate change and environmental goals by reducing emissions of CO2 and other pollutants
  • Improve business competitiveness by increasing energy efficiency and managing costs
  • Increase resiliency of our energy infrastructure by limiting congestion and offsetting transmission losses
  • Diversify energy supply by enabling further integration of domestically produced and renewable fuels

Improve energy efficiency by capturing heat that is normally wasted.

chp_emissions_reductionIn 2006, the U.S. emitted 5,890 million metric tons (MMT) of carbon dioxide.  This number is projected to rise to 6,851 MMT of carbon dioxide in 2030.  If CHP were to supply 20% of U.S. electricity generating capacity by 2030, the projected increases in carbon dioxide emissions would be cut by 60%.

Through continued research, development, and outreach, DOE and its partners could help to dramatically increase CHP’s share of U.S. electricity generating capacity. Recognizing the benefits of CHP and its current underutilization as an energy resource in the United States, the Obama Administration has a goal to achieve 40 gigawatts (GW) of new, cost-effective CHP by 2020. As discussed in the August 2012 DOE and EPA report, Combined Heat and Power: A Clean Energy Solution, achieving this goal would:

  • Increase total CHP capacity in the United States by 50% in less than a decade
  • Save energy users $10 billion per year compared to current energy use
  • Save 1 quadrillion Btu (Quad) of energy — the equivalent of 1% of all energy use in the United States
  • Reduce emissions by 150 million metric tons of carbon dioxide (CO2) annually — equivalent to the emissions from over 25 million cars
  • Result in $40-$80 billion in new capital investment in manufacturing and other U.S. facilities over the next decade

Combined Heat and Power: An Energy-Efficient Choice for Mid-Size to Large Hotels

Combined heat and power (CHP), also known as cogeneration, can be an excellent solution for controlling energy costs while improving the reliability of power supply for your hotel. With CHP, your hotel can:

  • Reducing operating costs.
  • Ensuring hot water is available for guests at all times.
  • Providing reliable electricity for gaming venues, even during utility blackouts.
  • Improving energy efficiency and overall environmental performance.
  • Reducing future cost uncertainties by creating a hedge against fluctuating energy prices.

“CHP projects today offer compelling payback in under 4 years with good thermal integration and product matching to customer energy use. Depending on potential subsidiary benefits, e.g. back-up power, financial offsets to utility service upgrades for expansion, power quality, incentives, etc,  IRRs of above 30% can be achieved.  

Project costs range from a couple hundred thousand dollars to a couple of million dollars, depending on Hotel size, annual occupancy, thermal uses for a turnkey solution.  

Strategic benefits include a sound financial savings over conventional services, protection from black outs, improved reliability with independence from the grid and a reduced carbon footprint.”  – Murray Millander – Founder, Distributed Energy Solutions, Inc.

Acquisition options include purchase, lease and energy service (our company owns and takes care of the equipment and guarantees a savings over the conventional utility services) … no up front cost to the hotel!

CHP utilization in the hotel and casino industry makes good business sense. Energy represents one of the few cost elements within a hotel’s control. Three-quarters of the industry’s total energy use is devoted to heating water and guest rooms, air conditioning, and lighting—all of which can be supplied cost effectively by CHP.

For large hotels and casinos, CHP technology significantly reduces the risk of a catastrophic utility blackout that can cost casinos more than $1 million a day in lost revenue.

What Is CHP?

CHP is the production of both power and heat from a single fuel source. By making use of the waste heat from onsite electricity production for heating or cooling, CHP increases fuel efficiency and decreases energy costs.

Differently sized hotels and casinos require different CHP applications:

200-rm-hotelHotels with 100 to 300 rooms: Could utilize a 60 to 250 kilowatt (kW) CHP system based on reciprocating engines, microturbines, or fuel cells, which would supply hot water for customers, space heating, and laundry needs.

Hotels with 300 to 500 rooms can install larger CHP systems of 250 to 380 kW and incorporate absorption chillers to supply the facility’s air conditioning needs

1000-rm-hotel Resort hotels and casinos with more than 500 rooms can utilize CHP systems of 1 to 20 megawatts (MW) run by reciprocating engines or gas turbines. These systems can provide all of the facility’s heating and cooling needs, in addition to a large portion of the electricity loads, and can be configured to operate in the event of a utility outage.


The market analysis for hotels and casinos developed by EPA’s CHP Partnership shows that about 10,000 of the nearly 48,000 hotels in the United States have energy characteristics suitable for current CHP technology.

Is My Hotel a Good Fit for CHP?

  • Do you have more than 100 rooms?*
  • Do you pay more than 7 cents per kilowatt-hour for electricity?*
  • Have you already implemented other energy efficiency measures?
  • Are you concerned about rising utility costs?
  • Do your guests complain of insufficient hot water?
  • Has your hotel ever experienced a utility outage?
  • Does your hotel have a central chilled water system?
  • Are you planning to add new boilers or replace existing boilers?

If you answered “yes” to three or more of these questions, your hotel might be a good candidate for CHP.

Note: Much of the source content directly from EPA Combined Heat & Power Partnership web site: http://www.epa.gov/chp/markets/hotel_fs.html