Smart grid trends: combined heat and power gets a boost

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We reported in early December that industrial distributed generation (industries developing their own on-site power generation) is expected to grow dramatically over the next five years. On Thursday, Energy Secretary Steven Chu affirmed DOE's support for a relatively young sector in the field, combined heat and power (CHP), during a hearing on the department's 2013 budget proposal.

CHP – also referred to as cogeneration – allows recapture of heat produced when generating electricity, usually regarded as waste, to be used in a district energy system for heating or cooling multiple buildings.

Chu made his comments during the budget hearing held by the Senate Energy and Natural Resources Committee in response to a question from Sen. Jeanne Shaheen (D-NH), a CHP supporter, who asked him about the department's position on the technology.

The secretary used his recent visit to the Thermal Energy Corporation (TECO) in Houston, Texas, to outline the benefits of CHP and district energy that provides steam for heating and chilled water for cooling to the Houston Medical Center. He noted that the significant increases in generation efficiency of new gas turbines (50-60%) can be 80% or higher when heat recovery is used for heating and cooling through a district energy system. He referred to CHP as proven technology and low hanging fruit.

Chu detailed how TECO creates and stores a large amount of chilled water at night when power costs are less and pumps the chilled water for air conditioning in the afternoon to avoid peak power demands. District energy systems such as TECO's generate steam, hot water and chilled water at a central facility that is distributed through underground pipe networks in cities, campuses and communities to several buildings for space heating, hot water and air conditioning.

Robert Thornton, president and CEO of the International District Energy Association, referred to district energy systems as "...clean energy infrastructure that are built to last." IDEA says there are hundreds of district energy systems like TECO's operating throughout the country that have the potential to add CHP and reap immediate energy, economic and environmental benefits.  

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