Combined heat and power, also known as co-generation, is a worthwhile investment for mid-size to large commercial property owners in New York, particularly in the five boroughs of New York City where a variety of financial incentives are available, according to a white paper issued by ConEdison Solutions.
The energy services company said there has never been a better time for a NYC property owner to implement a co-generation program.
CHP, or co-generation, is an integrated system of power production that harvests heat generated during the production of electricity. The system uses the heat,which would otherwise have been wasted, to deliver space heating and hot water.
The ConEdison Solutions white paper, using a 1.2 million-square-foot Class A building in Manhattan as an example, found that after investing $3 million in upfront costs that included installation of a CHP system and a backup generator, an owner would realize yearly savings and revenue from demand response programs of about $480,000 (see graphic). This hypothetical property would also receive up to $1 million in incentives available through the New York Independent System Operator, the New York State Energy Research and Development Authority and Con Edison, the regulated utility serving New York City.
A CHP policy and deployment scorecard developed by the American Council for an Energy-Efficient Economy (ACEEE), rated Maryland, Oregon and Rhode Island among the states with the most CHP-friendly policies.