Vendor Accountability: Combined Heat and Power Maintenance


$12,00 in annual energy costs

The Background

CHP units are significant investments with attractive payback periods, provided that the unit operates continuously. For the economics to work out, CHP units must offset grid-purchased electricity while delivering useful heat. Downtime forces buildings to purchase fuel and additional electricity from the utility instead of generating it on site. In addition to the direct costs of purchasing fuel/electricity, there are costs associated with the higher peak demand on the building’s electric bill since they used an additional 65 kW of peak power which is usually provided by the CHP. 

Downtime throws off the payback analysis, which assumes very limited fuel requirements for the building, and a low peak demand rate. Because CHP units are complex mechanical systems, the maintenance is often contracted to a third party. Because any downtime greater than 15 minutes will greatly increase peak demand charges, ensuring that maintenance is being performed as contracted in critical.


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Comly Wilson