Winter 2015
Meet the
ENERGY EXPERT
Is CHP right for you?
For most organizations, a Combined Heat and Power (CHP) system is a new
way of looking at their energy requirements. Essentially, a CHP system involves
building your own on-site power plant that not only produces electricity, but
also thermal energy. It can also be configured to act as an emergency electricity
backup system, to maintain essential requirements and avoid costly downtime
in extreme weather or an emergency.
While CHP is relatively new to Canada, it’s a proven technology that’s growing
worldwide. In the U.S., over 12% 1 of electricity is generated by CHP while almost
13% 2 of Germany’s electricity comes from CHP and this is projected to rise.
Following are some key considerations that may help in your decision-making.
About Gord Davies
Gord brings over 30 years of
experience to his role as the
Energy Expert managing the
Combined Heat and Power and
Embedded Energy Manger
programs. He also oversees the
funding for Preliminary and
Detailed Engineering Studies that
are required for many energy
conservation initiatives.
Prior to joining Toronto Hydro,
Gord’s work in the field of energy
conservation included
performance contracting,
consulting engineering and
research. His project experience
spans key sectors such as
industrial, commercial, institutional
and multi-residential.
Start with your heat
requirements
How consistent is your
energy usage day to day?
A CHP system is fundamentally an
electricity generator, which generates
heat as a by-product. When you’re
determining whether a CHP system
might be a solution, you actually
start with your thermal energy
requirements. That’s because it’s the
ongoing need for heat that accounts
for a large portion of the energy
savings and determines whether the
system is economically viable and
eligible for incentives.
CHP systems are optimal when energy
demands are reasonably consistent
and predictable. Consider for
example, a 300-unit condominium
building. Daily thermal energy usage
peaks between 6 and 9 a.m. when
most people get up, shower and have
breakfast, declines during the day and
peaks again towards the dinner hour
with a gradual falling off starting at
about 9 p.m. through the night.
Toronto Hydro can help you calculate
your thermal load to determine the
size of your CHP plant.
So consider where you use heat,
including space and water heating.
Calculating your thermal requirements
will be a determining factor in
specifying your CHP system.
In this case, base load requirements
and the extent of the peaks for
electricity, hot water and space
heating are predictable with some
variation during the seasons, which
makes a CHP system a strong
contender for this type of
implementation.
Winter 2015
Prioritize
your objectives
A free pre-assessment
is your first step
What are the best
candidates for CHP?
Many organizations look to CHP as an
effective way to reduce electricity costs
by generating all or most of their base
load. They may also want to replace
their current electricity emergency
backup system, and include that
capability for their CHP system.
Toronto Hydro can help you with the
groundwork for a CHP project.
Together, we’ll review your
consumption patterns, your base load,
the overall objectives for your project,
the potential cost savings and payback
period, even down to practical
considerations such as where you’d
locate a CHP plant.
A CHP system should be considered
for new builds or retrofits of:
If you’re a good candidate for CHP,
we’ll work with you to take the next
step, which is a detailed engineering
study. The study is required for the
eventual construction and also for your
incentive application.
• Large commercial buildings
Others see their biggest benefit in
reducing their electricity demand and
design their CHP system accordingly.
It’s important to understand what you
are trying to achieve so that you design
a system that meets your needs.
• Industrial plants
• Municipal buildings
• Universities and schools
• Hospitals and healthcare facilities
• Laboratories
• Data centres
• Malls
• High-rise condominiums
and apartments
Opportunistic timing
may help too
Two levels of incentives
reduce your costs
Contact Energy Expert
Gord Davies today
Many property managers first
consider CHP when they’re faced with
major infrastructure improvements
such as replacing a boiler. Doing a
cost/benefit analysis at that stage
means you’re just looking at the
incremental cost, rather than the
whole cost.
We’ll help you apply for incentives –
first, up to 100% of a detailed
engineering study with funding based
on CHP MWh generated, up to a
maximum of $50,000, and then up to
40% of the total project costs. There’s
no cost for our assistance during
these stages.
Want to get started or just get
answers to questions?
Further resources:
torontohydro.com/CHP
Toronto Hydro offers incentive programs to help you manage your electricity costs.
To find out about how you can save or to speak with an Energy Expert visit:
torontohydro.com/business
®A registered trademark of Toronto Hydro Corporation used under licence.
“Toronto Hydro” means Toronto Hydro-Electric System Limited.
1. Source: http://www.epa.gov/chp/documents/faq.pdf
2. Source: http://www.worldwatch.org/node/5924
[email protected]
416-542-3188