As all property managers and landlords face the increasing pressures of rising electricity rates and an increasingly unreliable transmission and distribution system, we must ensure that our customers, the tenants, have access to reliable sources of energy. affordable and reliable and resistant. Simply put, they have access to the power and heat they need when they need it.

In many cases, our infrastructure relies on a boiler-based system for heat and grid connections (with a potential backup generator) for power. However, this approach, as standard as it is, can be greatly improved by exploring combined heat and power (CHP) infrastructure. CHP plants produce electricity and useful heat from a common fuel source, resulting in a highly efficient way of generating power for your facility ‘behind’ the connection to the electrical distribution system.

There are many types of technologies that could be used (reciprocating engine, gas turbine, microturbine, and fuel cell) that an owner can explore to lower their operating costs and provide valuable continuity of power in the event of a blackout. That said, we tend to prefer microturbines for most installations under 1 MW. At this size, the microturbine is truly an apparatus and is modular in nature. A typical unit is about the size of a large refrigerator and has a moving part (running on air bearings). This means that it can be easily moved into a machine room and not take up a significant amount of ‘profitable’ space. With noise production below conversation level, maintenance on this type of equipment is minimal. You no longer need costly maintenance contracts involving oil removal and parts replacement. You won’t have to worry about testing your backup generator every month. The microturbine is designed to run full-time, reducing its reliance on grid electricity and providing a thermal source that can be used for hot water or space heating. In the event of an emergency, charging in your building can be prioritized to ensure your critical functions remain active.

This technology is not new. CHP has been active in the market for more than 25 years. What is new is the pressure that the spark (difference between electric rates and gas prices) puts on the average building owner. Add to this the potential for incentives through CDM (Conservation, Demand Management) funds of up to 40% and suddenly this technology could be much more viable. There are many companies that can perform the initial analysis at no charge to determine if you have a financial case to explore CHP.

If you are looking to replace boilers or are investigating adding/replacing your backup generator, you should take the time to explore if a CHP solution would work for you.