Facilities Dive
Summary
In the face of aging infrastructure, rising electricity prices and capital costs, energy savings contracts are no longer optional.
“What you’re seeing right now is that utilities are becoming less and less reliable, having more and more interruptions, low-voltage events, et cetera,” he said. “So what [companies] are doing is installing their own generation. They’re using all of the heat, and so … energy efficiency has gone up significantly with co-generation and even combined cycle generating plants that are local.”
Cogeneration, or combined heat and power (CHP), is a type of distributed generation, which unlike central station generation is located at or near the point of consumption. By generating electricity or power at the point of use, the technology allows heat that would normally be lost in the process to be recovered to provide heating or cooling, according to the U.S. Department of Energy.
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