Cogeneration/Combined Heat and Power: An Overview

Abstract

ABSTRACT Cogeneration/combined heat and power (CHP) is the sequential use of one fuel source to produce power and thermal energy. The energy cascade provided avoids losses that occur when power is traditionally generated at a central station power plant and thermal energy is consumed on-site in a boiler. CHP can be used in either a topping cycle or bottoming cycle mode with topping cycles being the most dominant application. CHP was used at the beginning of the 20th century, primarily for industrial uses. With the expansion of the electric grid and cheap raw energy, its use declined. A major expansion of the technology occurred in the eighties as a result of the Public Utilities Regulatory Policy Act of 1978. As a result of heavy opposition by the electric utility industry, the interest in CHP declined towards the end of the eighties. High energy prices and constrained generating capacity has renewed interest in the technology in 2002.