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Market Potential for CHP in New York State

Sizing Available for a Range of Generation Needs

There is a wide range of sizes for CHP systems and different sizes appeal to different markets. Large campus settings, such as colleges and hospitals, may accommodate CHP systems ranging from 5 MW to 50 MW; High-rise commercial office buildings may accommodate CHP systems ranging from 1 MW to 10 MW. Multifamily residential buildings, supermarkets, and hotels may accommodate CHP systems ranging from 50 kW to 300 kW. Single family residences may accommodate Micro-CHP systems ranging from 1 kW to 5 kW.

Potential for CHP

Large CHP System Installation
Large CHP System Installation

A NYSERDA-commissioned study published in 2002 found that there is a Technical Potential for approximately 8,500 MW of new CHP in NYS spread across roughly 26,000 sites (although it is unlikely that many of these sites would pursue CHP). Modeling forecasts in a Base Case scenario show an estimated 764 MW of CHP are likely to be installed over the next decade, whereas in the Accelerated Case scenario (where government intervention and other forces stimulate the marketplace), market penetration instead reaches nearly 2,200 MW during the same time frame.  The same study found that New York State has approximately 5,000 MW of installed CHP.  This consists of approximately 210 sites, indicating an average size of nearly 25 MW. These are relatively large systems.  Few candidate sites remain that could host a very large system.  The study found a vibrant marketplace for CHP systems sized 5 MW or less, with ample opportunities upstate as well as downstate. 

Small CHP Installation
Small CHP System Installation

Year-by-Year Cumulative Market Penetration of CHP by Region and Scenario

Market for Opportunity Fuels

Comparison of Market Penetration
Source: Combined Heat and Power
Market Potential for New York State
NYSERDA Final Report

CHP is often fueled with natural gas because a large number of sites have access to natural gas supplies, clean burning technologies using natural gas are compatible with strict air emission regulations, and most CHP equipment manufacturers provide systems designed to operate using natural gas as the fuel.  However, when conditions permit, the use of opportunity fuels can turn waste materials into valuable resources and provide economic advantages. A NYSERDA-commissioned study is cataloguing the availability of opportunity fuels such as: landfill gas, anaerobic digester gas from dairy farm manure, industrial food production scraps, municipal wastewater treatment plant sludge and scrap wood/biomass.

Last Updated: 09/23/2014