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PECO Combined Heat & Power Symposium
Paul Miles, CHP Program
September 20, 2018
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Objective
✓ Provide CHP Program Update
• Incentive structure
• How to apply
• Incentive payout examples
✓ Informational Panels
• Mid Atlantic CHP Technical Assistance Partnership
• PGW
• Energy Solutions Center (mCHP)
• Project Development Resources
✓ Wrap up
What is Combined Heat & Power (CHP)
✓ CHP is a clean and efficient
approach to generate power and
thermal energy from a single fuel
source on the customer premises
• Typical CHP systems:
Are located in close proximity to the energy
consumer's building envelope, campus, or industrial
processes
Provide at least a portion of a facility's electrical
load
Capture thermal energy from hot exhaust gases for
use in space heating, cooling, domestic hot water,
dehumidification, and/or process heating
Improve a facility’s operational efficiency, reducing
overall energy costs and emissions
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(Source: US Department of Energy)
CHP Process Flow Diagram
Good CHP Candidates
✓ Typically higher usage energy customers that possess a
thermal (steam requirement) in addition to their need for
electricity• Hospitals
• Retirement, Long Term Care Facilities
• Colleges
• Industrial Laundries
• Food Manufacturing
• C&I Processing Facilities (Refineries, Municipal Wastewater Treatment,
etc.)
• Mixed Use Commercial Office Buildings (Commercial Residential)
✓ Really any facility with an adequate thermal requirement
augmenting their need for electricity, or the desire to
utilize waste heat for heating, or cooling (absorption)
purposes4
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CHP Program Details
✓ Up to $2M, or 50% of total project cost (whichever is less)
✓ Currently accepting project applications www.peco.com/CHP
✓ All program related materials available here, and support:
• 1-866-850-0357 Option 1
Payment ($/kW) Total Project kW capacity
$300 ≤ 500
$150 >500 to 1,500
$75 >1,500 to 10,000
$0 >10,000
Projects capped at 10 MW for capacity but all MWh qualifies for incentives subject to $2M or of 50% of project cost provision
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www.peco.com/chp
Project Incentive Illustration 250 kW
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Verified Project Cost 3,650,000$
kW System Capacity 250
Est. 8% Paracitics kW) 20
Eligible Incetnive kW 230
Max Avaialble Capacity Incentive $69,000
Based on $300/kW up to 500
kW and no more than 40% of
overall project cost
8,400 Hours Operation Annually
Performance: 230 kW x 8,400
Hours/yr = 1,932,000 kWh x
$0.02/kWh =
$38,640
Performance Incetnive Based
on Projected Annualized MWh
Output x $20/MWh
($0.02/kWh)
Total Eligible Incentive $107,640Capacity + Performance, and
Less than 50% of Project Cost
Project Incentive Illustration 1 MW
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Verified Project Cost 4,785,000$
kW System Capacity 1,000
Est. 8% Paracitics kW) 80
Eligible Incetnive kW 920
Max Avaialble Capacity Incentive $213,000
1st 500 kW @ $300/kW, next
420 kW @ $150/kW
(combined and no more than
40% of overall project cost)
8,400 Hours Operation Annually
Performance: 920 kW x 8,400
Hours/yr = 7,728,000 kWh x
$0.02/kWh =
$154,560
Performance Incetnive Based
on Projected Annualized MWh
Output x $20/MWh
($0.02/kWh)
Total Eligible Incentive $367,560Capacity + Performance, and
Less than 50% of Project Cost
Project Incentive Illustration 12 MW
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Verified Project Cost 9,780,500$
kW System Capacity 12,000
Est. 8% Paracitics kW) 960
Eligible Incetnive kW 10,000
Max Avaialble Capacity Incentive $937,500
1st 500 kW @ $300/kW, next
500 kW @ $150/kW, next 8,500
kW @$75/kW (final 2,000 does
not qualify for capacity incentive
- capped at 10 MW)
8,400 Hours Operation Annually
Performance: 11,040 kW x 8,400
Hours/yr = 92,736,000 kWh x
$0.02/kWh =
$1,854,720
Performance Incetnive Based on
Projected Annualized MWh
Output x $20/MWh ($0.02/kWh)
Total Caclulated Incentive $2,792,220
Capacity + Performance, and
Less than 50% of Project Cost
but more than $2,000,000
$2,000,000 Incetnive offered for this project
CHP Incentive Reservation Process
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Go to peco.com/chpDownload /
Complete Project
Submission Form
Upon Submission,
Work With PECO to
Finalize Incentive
Reservation
Complete Project –
PECO VerificationUpon Certification
Incentive Fulfilled
Obtain Further Information @ [email protected] or (866 – 850 – 0357)
www.peco.com/chp
Option 1
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Partnering Organizations and
External Resources
✓PGW (Philadelphia Gas Works)
• https://www.pgworks.com/business/fueling-the-
future/combined-heat-power
✓ESC (Energy Solutions Center)
• http://understandingchp.com/
✓DOE CHP Technical Assistance Partnership/Mid
Atlantic
• http://midatlanticchptap.org/
✓EPA Combined Heat & Power (CHP) Partnership
• https://www.epa.gov/chp12
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