NY's Peaking Plant Problem
In 2019, the New York State Department of Environmental Conservation (DEC) adopted a regulation to...
Combined Heat and Power (CHP) is an energy-efficient technology that generates electricity and captures the heat that would otherwise be wasted to provide useful thermal energy—such as steam or hot water—to be used for heating, cooling, hot water, and industrial processes. CHP is a distributed resource that is typically located at a client’s facility where there is a need for both electricity and thermal energy. Clients considering potential CHP projects typically lack the knowledge and expertise to properly evaluate both the technical and financial implications, and they usually do not consider the impacts of CHP on their supply agreements and demand-side initiatives.
5 conducts feasibility studies to determine the economic viability of proposed CHP systems for clients. First a baseline is established using the client’s energy usage profile and associated costs. Then a series of simulation models are run to consider future costs while accounting for extreme market movements, maintenance downtime, output power, parasitic loads, boiler efficiency, and power plant degradation. The resulting life cycle cost analysis determines the Net Present Value and Internal Rate of Return for each CHP project.
By working with 5, clients can move forward with financially viable CHP projects that can provide increased reliability, peak load shaving, and serve as a safeguard against rising electricity costs.
Contact Us to learn how 5 can review your CHP needs as part of a Whole Health Energy Plan.