The financial burdens of property ownership, particularly energy costs, have soared in recent decades. However, one proven solution strategy is to use Combined Heat and Power (CHP), also known as co-generation. This is an integrated system of power production that harvests heat generated during the production of electricity, which is then utilised instead of being wasted. This in turn delivers energy benefits such as space heating and domestic hot water.
According to American energy services company ConEdison Solutions, there has never been a better time for a New York property owner to implement a co-generation programme.
The company’s recent White Paper on the subject, entitled “Combined Heat and Power: How Building Owners can Reap Financial, Environmental, and Resiliency Benefits with Reduced Grid Dependence.” has now been published on its website.
“Co-generation is a wise investment for mid-size to large commercial property owners in New York State – but particularly in the five boroughs of New York City, where multiple parties provide financial incentives to make it not only affordable, but a smart business decision” said Richard Rathvon, Vice President of Retail Commodity Services at ConEdison Solutions.
The White Paper uses a hypothetical 1.2 million square foot Class A office building in Manhattan to calculate the potential savings available through the technology. With an investment of $3 million in up-front costs, including installation of a CHP system with a backup generator to provide energy security and resiliency in the event of grid disruptions, the hypothetical property owner would generate approximate yearly savings and revenue from demand response programmes of about $480,000. The hypothetical property would also receive up to $1 million in incentives available through the New York Independent System Operator (NYISO), the New York State Energy Research and Development Authority (NYSERDA), and Con Edison, the regulated utility serving New York City.
The example shows that the investment rapidly pays for itself with a payback period, based on conservative fuel price projections, of 4.1 years. This is a term that is considered highly attractive in the world of energy investment. All energy savings accrued after that point would help to lower the property’s bottom line operating costs for an indefinite period going forward and the building would also have back-up generation that it previously didn’t have.
ConEdison is also offering to work with business owners considering such a strategy. The company’s energy experts will help devise a suitable CHP initiative best suited to each owner’s particular commercial property.
New York State’s energy infrastructure, together with the physical proximity of properties in New York City, will contribute to the cost-effectiveness of implementing a co-generation programme in this area. Once in place, co-generation provides the means to reduce peak demand enabling energy providers to alleviate stress on the state grid. Decreased usage allows utilities to defer maintenance expenditures and reduces the need for system-wide expansion required to serve an ever-growing peak usage.
ConEdison Solutions provides a variety of energy services including renewable energy, sustainability services, cost-effective energy efficiency solutions and energy performance contracting, alongside conventional energy provision from natural gas. The company serves commercial, industrial, residential and government customers across the US, including universities, public school districts, and hospitals. ConEdison is based in Valhalla, New York, but has offices across the country.
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