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Public Sector Combined Heat and Power (CHP) Pilot Program

​The CHP Pilot Program provides cash incentives for combined heat and power (CHP) projects that increase energy efficiency of local governments, municipal corporations, public school districts, community college districts, public universities, and state/federal facilities located in the service territories of Commonwealth Edison (“ComEd”), Ameren Illinois (“Ameren”), Nicor Gas (“Nicor”), Peoples Gas (“Peoples”), and/or North Shore Gas (“North Shore”).

CHP is an efficient and clean approach to generating power and thermal energy from a single fuel source.  CHP is used either to replace or supplement conventional separate heat and power. Instead of purchasing electricity from the local utility and burning fuel in an on-site furnace or boiler to produce needed steam or hot water, a facility can use CHP to provide both energy services in one energy- efficient step.  Every CHP application involves the recovery of thermal energy that would otherwise be wasted to produce additional power or useful thermal energy; as such, CHP can provide significant energy efficiency and environmental advantages over separate heat and power.  It is reasonable to expect CHP applications to operate at 75% or greater, a large improvement over the national average of 45% for these services when separately provided.

The CHP Pilot Program is structured with performance based incentives to provide financial assistance during various stages of a project, including after the design phase, commissioning, and after 12 months of measured operational performance:

  • Design Incentive: $75/kW capacity (following completion of the design phase) 
  • Constructive Incentive: $175/kW capacity (following successful commissioning of the system) 
  • Production Incentive: $0.08/kWh (η ≥ 70% HHV) OR $0.06/kWh (60% ≤ η < 70% HHV) of “useful electric energy” produced (after 12 months of operation based on meeting the measured operating requirements of the system)

For Conventional CHP systems to qualify, the minimum measured performance level must be an annual energy efficiency of 60% with at least 20% of the system’s waste heat energy output in the form of useful thermal energy utilized in the facility.  For additional requirements, please refer to the “Downloadable Application” below.  Final applications requiring an engineering feasibility analysis are due November 21, 2014.

For more information contact:
Patrick Brown
Energy Resources Center, University of Illinois at Chicago
312-996-5055 or prbrown@uic.edu