Combined Heat and Power Market Study

The Combined Heat and Power (CHP) Potential at Federal Sites market study (PDF 357 KB), a technical report completed by Oak Ridge National Laboratory (ORNL) for FEMP, examines many questions surrounding CHP applications for Federal facilities. Download Adobe Reader.

Highlights from the report's executive summary are outlined below across:

Potential at Federal Sites
Potential at Your Site
Potential for the Federal Sector

Potential at Federal Sites

FEMP analysis estimated total potential CHP capacity to be 1500 to 1600 megawatts (MW), under the assumptions and parameters used in the analysis, for gas reciprocating engine or gas combustion turbine technologies in Federal facilities across the country. Electricity potentially produced with this capacity represents approximately 13% of all electric use in the Federal sector. The Federal building types with CHP potential were primarily hospitals, industrial, and research and development facilities.

Table 1 below summarizes analysis results, including the amount of capacity and savings for each building category studied. The assessment considered 7 building types for 28 different Federal agencies.

Table 1. National CHP potential at Federal facilities larger than 25,000 ft² using base case assumptions
	Hospital	Industrial	Office	Prison	R&D	School	Service	Total
Total Mft², all buildings^a	141	115	514	41	144	136	463	2757^b
Buildings with CHP payback < 10 years, Mft²	113	80	146	16	100	42	82	579
Estimated number of sites with CHP potential	235	75	167	38	70	42	74	700
Percent of sites with CHP potential	71%	42%	7%	38%	17%	5%	7%	9%
Potential TWh of electricity from CHP	2.93	2.25	0.76	0.24	0.81	0.06	0.65	7.69
Energy savings, TBtu	19.3	14.8	5.0	1.5	5.4	0.4	4.3	50.7
Potential CHP capacity, MW	446	342	248	36	265	18	211	2567

^aIncludes buildings in General Services Administration (GSA) database > 25,000 ft², even those without CHP potential
^bTotal includes other building types not shown
Mft² = million square feet
TBtu = trillion Btu
TWh = terawatt hours

Under present assumptions, the regions with the greatest CHP potential are the Southwest (CA to TX), Northeastern metropolitan areas (NY to DC), and the Southeast (FL, GA, AL). Potential CHP capacity for each state is mapped in Figure 1 below.

This figure identifies the distribution of CHP capacity in Federal sites across the country, in units of MW. In CA, NM, CO, TX, LA, FL, GA, TN, VA, OH, NY, and NJ, the CHP capacity is estimated to be anywhere from 36-336 MW, under the base case scenario. In AK, HI, AZ, MI, KS, MO, IL, PA, and MA, the capacity is estimated to range from 23-37 MW. The capacity is estimated to be 17-23 MW in the eight states of OK, AR, AL, IN, WI, WA and MN. In NV, ND, SD, MS, SC, NC, WV, CT, and RI, the capacity is estimated to range from 5-17 MW. And in thirteen states, including OR, ID, UT, MT, WY, NE, IA, KY, MD, DE, NH, VT, and ME, the capacity for CHP projects is estimated to be less than 5 MW.

The pie chart in Figure 2 shows the estimated amount of CHP capacity for 9 agencies. Other agencies each had capacities of less than 10 MW. Not surprisingly, the military branches had highest overall CHP potential in most building categories. Concentrations of potential CHP capacity at the various Federal agencies examined were as follows:

Veterans Affairs: Hospitals
National Aeronautics and Space Administration: Research, development, and industrial facilities
Department of Energy: Research, development, and industrial facilities
General Services Administration: Offices
U.S. Postal Service: Offices
Department of Justice: Prisons

This pie chart shows the distribution of potential CHP capacity for major Federal agencies. There is 338 MW of potential CHP capacity estimated for the Air Force; 313 MW potential capacity is estimated for the Veterans Affairs; 269 MW for the Army; 205 MW for the Navy; 194 MW estimated for the Department of Energy; 73 MW for NASA; 69 MW for the General Services Administration (GSA); 47 MW estimated for the U.S. Postal Service; and 36 MW for the Department of Justice. All other Federal agencies are estimated to have 40 MW of potential CHP capacity.

Potential at Your Site

FEMP's national market assessment did not attempt to identify which specific sites have CHP potential. Site-specific information is needed to identify the actual best candidates for Federal CHP because the condition of existing equipment, energy use at a facility, prices paid for electricity and gas, and local regulations related to emissions, interconnection, and siting can vary widely by site.

However, FEMP recognizes the potential for CHP to reduce the costs of Government, increase energy security, and improve air quality, and is actively working to make advanced CHP technologies more easily accessible to Federal agencies. For help determining whether or not your Federal site has CHP potential, FEMP offers CHP screenings.

Potential for the Federal Sector

The CHP market study illustrated that the Federal sector has tremendous opportunity to receive the benefits CHP systems offer. The assessment revealed significant potential for CHP in the Federal sector. The 1.5 gigawatts (GW) of estimated potential in the base-case scenario had an average simple payback of 6 years and would save the Federal Government $170 million per year in energy costs.