Increasing the capacity of efficient, simultaneous, on-site generation of heat and power can decrease environmental impact, provide energy security, and reduce cost, thereby helping to bolster the state economy. Combined Heat and Power (CHP) as an energy efficiency measure supports the governor's strategy to offset 18 percent of the state’s projected 2025 energy demand through efficiency. The Kentucky Division for Energy Efficiency and Conservation partners with the Kentucky Pollution Prevention Center, the Kentucky Association of Manufacturers, and the Southeast Combined Heat and Power Technical Assistance Partnership to support CHP implementation in Kentucky. A two-year initiative aims to identify policies and programs that will create a better environment for economical usage of this technology.
What is CHP?
CHP is an integrated energy system that is located near the point of use, generates electrical or mechanical power, and recovers thermal energy that can be used for climate control in buildings or for industrial process use. A variety of technologies and fuels can be used for CHP strategies to suit the application.
CHP gains efficiency by utilizing heat that might otherwise be wasted and avoids energy losses of long power lines. CHP can be as much as 70 percent or more efficient, as compared to the less than 40 percent efficiency of separate heat and power production.
A more efficient system reduces generation of greenhouse gases by utilizing less fuel. Additional efficiency gains and emissions reductions can be made through fuel selection and pollution abatement systems.
During natural disasters, such as tornados and ice storms, or other grid interruptions, CHP can be a reliable alternative. Reliable power service is critical for hospitals and emergency service providers.
A more efficient system means less operating cost, which can increase the competitive edge for Kentucky businesses.