The terms “cogeneration” and Combined Heat and Power (CHP) are synonyms for the simultaneous production of hot water and supplemental electricity for on-site use. So-called “MicroCHP solutions” (< 50 kW/hr) are often powered by an internal combustion engine, fuel cell or turbine. This makes them easy to install in a variety of commercial applications.
MicroCHP technology is a promising solution in regions where there is a substantial “spark spread.” That’s the difference between the cost of electricity and natural gas in a particular location. By using relatively low-cost natural gas to provide hot water solutions and supplemental electricity, a MicroCHP system enables a business to use less of the expensive electricity from the grid. Other opportunities exist where there is need to reduce grid dependency and improve grid reliability.