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Fundamentals of a Third-Party Cogeneration Project
Abstract
There is an increasing number of 2-10 MW cogeneration
projects involving retrofits at institutional and industrial
installations. This type of project requires that the
cogeneration equipment be (a) designed and sized to match
the electrical and thermal usage of the facility and (b)
retrofitted or integrated physically with the facility. Third-party
ownership and operation of these installations offer
significant advantages such as no capital investment and no
risk by the user, technical expertise to handle the more
involved implementation of retrofit projects, and the
ability to combine cogeneration with other energy
conservation measures to reduce total energy costs for many
facilities by 15-30%.
This paper describes certain fundamentals required for the
successful implementation of a third-party cogeneration
project such as the 2.5 MW installation at York Hospital in
York, Pennsylvania. The most significant fundamentals are
the contract between the user and the third party, early
contact with the electric utility and gas distribution
companies, the ability to keep the capital cost low, the
selection of a contractor with retrofit experience, the capability
to obtain fuel at favorable terms and conditions, and a practical
approach toward operation and maintenance.
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Citation
Grantham, F.; Stovall, D. (1985). Fundamentals of a Third-Party Cogeneration Project. Energy Systems Laboratory (http://esl.tamu.edu). Available electronically from https : / /hdl .handle .net /1969 .1 /93101.