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Heat and Power in one efficient system - Photograph of an industrial combined heat and power system.

Combined Heat and Power (CHP) – an efficient, proven solution

A CHP system offers three key benefits:

  • Reduced electricity costs
  • Lower heat generation costs
  • A reliable system for critical requirements, replacing the need for emergency backup
A graphic that shows that combined heat and power systems are 75% efficient.

Generate power and heat from one fuel source

CHP may be a smart choice if you have an ongoing need for both electricity and thermal energy. Both requirements must be present to make CHP viable.

The system can be powered by a variety of fuels including natural gas (the most common choice), biomass, biogas and waste heat. The lower fuel cost, together with the overall system efficiency, drive the savings for both electricity and heat.

Additional savings are achieved through avoided transmission and distribution costs.

Available Incentives

Apply for Process & Systems incentives up to 100%

Because the implementation of a CHP system means that you will be generating power, you will be required to provide an engineering study to build a CHP plant at your site. We offer funding up to 100% of the costs for a detailed engineering study for this purpose.

Then you can qualify for incentives of up to 40% of the total project cost to implement your CHP system.

Before you upgrade current systems, consider CHP

If you're faced with upgrading boilers or backup generators, a preliminary engineering study can help you decide whether to implement a CHP system instead.

It may be able to replace a significant percentage of a boiler's output while also generating electricity. Compared to diesel generators, a CHP system eliminates the need to store diesel fuel onsite and ongoing systems testing.

With simple paybacks from below 10 years and an expected lifespan in excess of 20 years, a CHP system makes good economic sense.

A backup system for critical electrical requirements

Under normal operating conditions, a CHP plant generates electricity behind the meter matching thermal load of a facility drawing some power from the grid. However, during emergency circumstances, with grid power not available, a CHP can also operate as an electrical island to seamlessly power essential industrial processes, elevators, lighting and vital equipment, avoiding downtime and inconvenience.

A graphic representation of a combined heat and power system showing the separate elements for creating electricity and heat from natural gas fuel

Up to 10 MW capacity

The incentives are for projects that deliver electricity at an annual efficiency of 65% up to a maximum of 10 MW. Plants should be designed as thermal load following. Generally, industrial projects fall between two to three MW, while multi-residential projects are typically between 300 to 500 kW.

Typical CHP users

Today, the most common implementations of CHP systems are seen in:

  • Industrial facilities
  • Manufacturers
  • Food processors
  • Pharmaceutical companies
  • Universities
  • Hospitals
  • Multi-residential buildings

Four steps to implement CHP

Start with a pre-assessment

Contact us first to determine whether CHP is possible for your facility.

Apply for funding for a detailed engineering study

Based on an approved pre-assessment, we'll help you apply for funding for a detailed engineering study, up to 100% of costs.

Apply to the IESO for incentives to build your CHP plant

With a completed engineering study you can apply through Toronto Hydro and receive approval to build a CHP plant.

Implement and save

Upon IESO approval, Toronto Hydro will provide you with an agreement to sign in order to receive incentives of up to 40% of the total project cost. Partial incentive payments can begin during construction and are completed within the first year of plant operation.

Contact us today to start your savings

Photo of Gord Davies

Gord Davies
CHP Energy Expert

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