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Fundamentals of a Third-Party Cogeneration Project
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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.
Grantham, F.; Stovall, D. (1985). Fundamentals of a Third-Party Cogeneration Project. Energy Systems Laboratory (http://esl.tamu.edu). Available electronically from