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Combined Heat and Power Partnership

Project Development

What You Need to Know

Graphic of CHP Project Development Process Stages

Stage 1: Qualification Stage 2: Level 1 Feasibility Analysis Stage 3: Level 2 Feasibility Analysis Stage 4: Procurement Stage 5: Operation and Maintenance

The mission of the Combined Heat and Power (CHP) Partnership is to increase the use of cost-effective, environmentally beneficial CHP projects nationwide. To accomplish this mission, the Partnership has developed resources to assist energy users to design, install, and operate CHP systems at their facilities.

In order for the process to advance smoothly, a CHP Champion is necessary—someone who has the interest and the will to guide the project from conception to completion. The following pages will help you become an educated CHP Champion who can save your organization time and money, reduce business risk and environmental impacts, and improve the power reliability of your facility.

These pages provide information, tools, and hints on project development, CHP technologies, and the resources of the CHP Partnership. Resources are available throughout the process and are divided into five stages:

Stage 1: Qualification
Goal: Determine whether CHP is worth considering at a candidate facility.


Stage 2: Level 1 Feasibility Analysis
Goal: Identify project goals and potential barriers. Quantify technical and economic opportunities while minimizing time and effort.


Stage 3: Level 2 Feasibility Analysis
Goal: Optimize CHP system design, including capacity, thermal application, and operation. Determine final CHP system pricing and return on investment.


Stage 4: Procurement
Goal: Build an operational CHP system according to specifications, on schedule and within budget.


Stage 5: Operation & Maintenance
Goal: Maintain a CHP system that provides expected energy savings and reduces emissions by running reliably and efficiently.

CHP projects have proven to be cost-effective, efficient, and reliable at many industrial, institutional, and large commercial facilities nationwide.

In order to maximize the energy and economic benefits that CHP offers, projects are designed to meet a specific site's operational needs and to integrate seamlessly into existing mechanical and electrical systems. Due to the complexity of the design process, procurement can become complicated and time-consuming. Commonly, delays occur when the project's goals (e.g., reducing energy costs, increasing reliability, expanding capacity, etc.) are not clearly outlined and accounted for throughout each stage of the planning and implementation process. As the CHP Champion, you must keep these goals in mind while facilitating each stage of the CHP system's implementation.

While your specific CHP project development experience will be unique, an understanding of the CHP development process will help you overcome common obstacles at your facility. The following five pages outline questions, issues, and specific choices that must be addressed by all CHP projects, organized in stages 1 through 5. Reviewing these pages will help you better understand the project development process in general and smooth the way for your own project's successful implementation and operation.

Forward to Stage 1 >>

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