ANALYSIS OF CHP POTENTIAL AT FEDERAL SITES

This document was prepared at the request of the U.S. Department of Energy's (DOE's) Federal Energy Management Program (FEMP) under its Technical Guidance and Assistance and Project Financing Programs. The purpose was to provide an estimate of the national potential for combined heat and power (also known as CHP; cogeneration; or cooling, heating, and power) applications at federal facilities and the associated costs and benefits including energy and emission savings. The report provides a broad overview for the U.S. Department of Energy (DOE) and other agencies on when and where CHP systems are most likely to serve the government's best interest. FEMP's mission is to reduce the cost to and environmental impact of the federal government by advancing energy efficiency and water conservation, promoting the use of renewable energy, and improving utility management decisions at federal sites. FEMP programs are driven by its customers: federal agency sites. FEMP monitors energy efficiency and renewable energy technology developments and mounts ''technology-specific'' programs to make technologies that are in strong demand by agencies more accessible. FEMP's role is often one of helping the federal government ''lead by example'' through the use of advanced energy efficiency/renewable energy (EERE) technologies in its own buildings and facilities. CHP was highlighted in the Bush Administration's National Energy Policy Report as a commercially available technology offering extraordinary benefits in terms of energy efficiencies and emission reductions. FEMP's criteria for emphasizing a technology are that it must be commercially available; be proven but underutilized; have a strong constituency and momentum; offer large energy savings and other benefits of interest to federal sites and FEMP mission; be in demand; and carry sufficient federal market potential. As discussed in the report, CHP meets all of these criteria. Executive Order 13123 directs federal facilities to use CHP when life-cycle costs indicate energy reduction goals will be met. FEMP can assist facilities to conduct this analysis. The model developed for this report estimates the magnitude of CHP that could be implemented under various performance and economic assumptions associated with different applications. This model may be useful for other energy technologies. It can be adapted to estimate the market potential in federal buildings for any energy system based on the cost and performance parameters that a user desires to assess. The model already incorporates a standard set of parameters based on available data for federal buildings including total building space, building type, energy use intensity, fuel costs, and the performance of many prime movers commonly used in CHP applications. These and other variables can be adjusted to meet user needs or updated in the future as new data become available