Combined Heat and Power Projects

Combined heat and power (CHP) is the sequential production of electricity and useful thermal energy from a single source fuel.

  • Types of CHP generators:
    • Gas Internal Combustion Engine 
    • Gas Combustion 
    • Turbine Microturbine
  • Fuel types:
    • Natural Gas 
    • Biogas 
    • Landfill Gas
  • Useful thermal energy is created from the production of electricity which would otherwise be wasted if not used for other nonelectric generation, beneficial purposes such as:
    • Hot Water 
    • Heating 
    • Cooling 
    • Other industrial processes

CHPs can qualify for Tier II AECs in the PA AEPS under the distributed generation designation (DGN). The PA AEPS does not limit the number of years a CHP can participate. To qualify in the AEPS, CHPs will need to meet the following requirements:

  • Located in Pennsylvania
  • Total capacity less than 5 MW
  • Interconnection to local utility (if not interconnected, the generator may still qualify under demand-side-management)
  • Production meter to record generation
  • Currently, the PA AEPS does not have a system efficiency requirement

Please see the CHP Overview for additional information and application directions.