Combined Heat and Power (CHP) and District Energy

Combined heat and power (CHP)—sometimes called cogeneration—is an integrated set of technologies for the simultaneous, on-site production of electricity and heat.

A district energy system is an efficient way to heat and/or cool many buildings from a central plant. It uses a network of pipes to circulate steam, hot water, and/or chilled water to multiple buildings.

A microgrid is a network of electricity sources and loads that is typically connected to and synchronous with the grid, but is also able to operate independently in “island mode.”

CHP is often an integral part of district energy systems and microgrids. CHP, district energy systems, and microgrids improve energy efficiency, reduce carbon emissions, facilitate integration of renewable energy sources, lower operating costs, and improve resilience of critical infrastructure and the electric power system.

As the grid evolves and includes more different types of distributed energy resources, there is an increased need to ensure the stability and reliability of the electric power system. Flexible CHP systems that can provide needed grid support services―such as ramping capability, frequency response, and voltage control―hold significant potential(link is external).

To ensure that the CHP and district energy R&D portfolio is focused on needed technology development areas, the Advanced Manufacturing Office regularly convenes stakeholders to discuss priority needs:

In June 2022, approximately 50 researchers from industry, national laboratories, and research institutes met with the Advanced Manufacturing Office to understand the performance of the projects being sponsored through the CHP program and the status of the technology development, which informs future program planning:

CHP and district energy R&D portfolio focus areas are:

FLEXIBLE CHP SYSTEMS

These projects develop flexible CHP systems that can provide support services to the electric grid. The projects are divided into two topic areas: (1) power electronics and control systems that enable seamless interconnection of CHP systems with the grid; and (2) prime movers to enable CHP systems to be more responsive to the demands of the modern grid.

HIGH EFFICIENCY TURBINES FOR CHP

These projects are developing advanced materials, combustion system improvements, and new airfoil designs to improve the efficiency of turbines used in flexible CHP systems.

HIGH POWER TO HEAT RATIO CHP SYSTEMS

These projects are developing CHP technologies with increased electricity generation efficiency while maintaining high overall system efficiency.

DISTRICT ENERGY

These projects are developing innovative technologies and approaches to integrating flexible CHP into district energy systems.

TOOLS AND ANALYSIS FOR CHP IN MICROGRIDS AND DISTRICT ENERGY SYSTEMS

These projects are conducting analysis and developing tools for the application of flexible CHP systems in microgrids and district energy systems.

Find information about past CHP R&D projects funded by DOE. Previous R&D efforts focused on advanced reciprocating engine systems, packaged CHP systems, high-value applications, fuel-flexible CHP, and technology demonstrations.

Learn more about CHP in DOE's Onsite Energy Program.