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U.S. Department of Energy
Office of Scientific and Technical Information

Analysis of electric alternatives to cogeneration in commercial buildings: Final report

Technical Report ·
OSTI ID:6240832
Small standardized cogeneration systems (1000 kW or less) have been developed recently and are being promoted for use in commercial buildings. These packaged systems are most often sized to meet baseload electricity requirements and also serve building thermal requirements, such as domestic water heating, pool heating, space heating, or space cooling. When properly applied, cogeneration systems can reduce building energy costs, but they may not be the best investment for a building owner. High-efficiency electric alternatives, such as heat recovery chillers, heat recovery heat pumps, heat pump water heaters (HPWH), high-efficiency space heating and cooling units, and thermal energy storage (TES) produce a substantially higher rate of return, in many cases, than cogeneration. When these options are installed in a commercial building, they will reduce the rate of return of the cogenerator by reducing the value of the thermal energy displaced by the cogenerator. This study examines the factors that determine the economics of cogeneration systems and electric options, such as climate, building type and use, electric rate structure, and natural gas cost. Five typical buildings (hotel, hospital, office building, shopping mall, and university complex) were studied in three climate zones represented by metropolitan Los Angeles, Memphis, and Chicago. Eight different electric rates were used, ranging from a low flat rate of $0.04 per kilowatthour to a high time-of-use (TOU) rate of $0.128 per kilowatthour during the on- peak period. The economic results of operating each electric alternative, and of operating cogeneration, in each building type were compared to the baseline building system. Cogeneration economic results were then determined for each building type with each of the electric alternatives in place to assess the effect of the alternatives on cogeneration economics. 61 figs., 50 tabs.
Research Organization:
Electric Power Research Inst., Palo Alto, CA (USA); Dames and Moore, Bethesda, MD (USA)
OSTI ID:
6240832
Report Number(s):
EPRI-CU-6378
Country of Publication:
United States
Language:
English