State Energy Program

Combined Heat and Power

Combined Heat and Power (CHP)-Enabled Renewable, Distributed Energy Technology in a Micro-Grid via Leveraged Use of Pennsylvania Marcellus Shale Gas

Through US Department of Energy's State Energy Program (SEP), DEP's Energy Programs Office has provided funding to The Pennsylvania State University's Consortium for Building Energy Innovation to demonstrate the use of natural gas and solar energy in a hybrid, CHP-Enabled Renewable Energy distributed energy configuration at the newly constructed Building 7R facility at the microgrid within the Philadelphia Navy Yard.

This project was selected as a partnering opportunity for this cutting-edge technology as Pennsylvania's 2015 Climate Change Action Plan Update contains a work plan recommending increased deployment of CHP systems in PA. In addition, the PUC released a policy statement and established a working group intended to promote CHP investments and encourage electric distribution companies (EDCs) and natural gas distribution companies (NGDCs) to make CHP an integral part of their energy efficiency and resiliency plans.

This demonstration project provided the empirical data for the development of “CHP-Enabled Renewable Energy in Microgrids in Pennsylvania: A Guidance Document for Conceiving Feasible Systems.” This guide is for those who are interested in distributed energy micro-grid installations and entails what a microgrid is, the benefits, an overview of microgrids at the building, campus and municipal scale, and a discussion of potential business models, economics and financing. A step-by-step procedure is outlined for conceiving and exploring the economic feasibility of potential CHP projects and prepares interested parties for engaging community stakeholders and system developers to discuss micro-grid deployment opportunities. The guide and accompanying spreadsheet tool can be downloaded from Penn State at the Navy Yard's website.