Cogeneration/Combined Heat and Power An Overview

Abstract

Cogeneration/combined heat and power (CHP) is the sequential
use of one fuel source to produce power and thermal energy. The en-
ergy cascade provided avoids losses that occur when power is tradition-
ally 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.