Procurement, Operation, & Maintenance
Successfully installing a CHP system is a complex task that requires
skill and knowledge in a wide range of disciplines including engineering,
construction, plumbing, wiring, and environmental compliance. For this
reason, it is wise to partner with contractor or project developer who has
experience with CHP systems. It is likely that the engineering firm that
assisted with your Level 3 Investment-grade Analysis
will be able to provide names of some qualified firms. If not, you can
Contact Us for ideas.
Project Financing
A wide range of options is available for financing CHP projects, including a
bank loan, leasing, partnership, joint venture, vendor financing, energy
savings performance contract, utility program, end-use purchase, bonds,
grants, enhanced leasing, and appropriations. The options should be fully
investigated to see which one will provide the best solution for your
business environment. Please see our Project Financing page for more details and explanations on each of
these options.
Permitting
There will likely be a number of permits required to proceed with a CHP
installation. The number and complexity will vary depending on the size and
scope of the project. However, some of the more common ones include
emissions, interconnection (connecting to the grid), and construction.
Emissions
CHP and other forms of recycled energy typically reduce total air emissions
compared to grid-supplied power and separate onsite thermal systems.
However, CHP systems are still required to meet environmental permitting
requirements that regulate the emission of pollutants into the air. The
emission depend on the technology used and the pollution abatement
installed, and the requirements depend on the location of the system. See
our Emissions page for more
details.
Interconnection
Most CHP system owners decide to still remain connected to the electric
grid, so their building operations can go on uninterrupted during times of
planned or unplanned maintenance eon the system, or so the grid can cover
peak times.
The process of interconnecting to the grid
varies from state from state
(and sometimes from utility to utility). States and utilities want to ensure
that the system is safely and reliably connected to the system so as to not
cause damage to utility lines or personnel. Some states, though are
improving and standardizing the process to make it easier for clean energy.
In general, smaller or less complicated systems can receive a "fast track"
approval from the utility, requiring a few days’ to a few weeks’ time, while
larger or more complicated systems require longer studies before being
connected.
Operations and Maintenance
Once the system has been installed, interconnected, and commissioned, it has
to be properly operated and maintained to maximize output and value. This
can be done in a variety of ways, but will fall to a either in-house staff
or contractors or a combination of both.
If you choose to use your own personnel, staffing levels and training
should be investigated. Larger systems are likely to require additional
staffing to run them and all systems will require operator training. Time
should be budgeted to cover hiring and training of operations staff.
Maintenance of CHP systems can be very complex and require special skills.
It is likely that all but the largest and most sophisticated of end users
will have the personnel to provide anything but the basic maintenance
required. Contractors will be needed for periodic maintenance and
particularly for overhauls. Additionally these same maintenance contractors
can be retained to provide all scheduled and unscheduled maintenance, thus
reducing the demands on operational staff.
If you already have a system up and running, the U.S. Intermountain Clean
Energy Application Center may be able to help
(at no charge) to analyze its operation and suggest improvements.
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