Advancements in compact, power-generating equipment have prompted many companies to consider the installation of wood or gas-fueled generators to supplement electricity from their utility during peak demand periods, or to provide a source of supplemental income through purchased power contracts.  Cogeneration is a system that burns energy once, but actually uses it twice. Rather than burning fuel to produce only heat, natural or wood-gas can be burned in a reciprocating engine or a turbine that is coupled with a generator to produce electricity and then utilize the waste heat. This dual application of energy improves efficiency, often resulting in significant economic savings.

Cogeneration uses the heat recovered from this exhaust for:

• Low-cost steam and hot water
• Space heating
• Cooling

Benefits

• Reduces energy costs
• Creates long-term operational savings
• Generates surplus electric power which may be resold
• Minimizes the need for storage of alternative fuels
• Lowers the risk of operational shutdowns due to electrical disruptions
• Meets environmental standards

On-site power generating equipment is most practical when operated for more than one shift; therefore, this technology is most suitable for businesses that operate from 16 to 24 hours per day. Additionally, businesses that can utilize waste heat can substantially improve the payback period. These businesses include health clubs, hotels, schools, medical, and manufacturing facilities.

The Economics

Power-generating hardware does represent a capital investment, but the return on capital can be substantial for a business. VEC provides help in feasibility analysis and long-term planning, while eliminating concerns about power grid reliability. VEC can direct businesses to potential funding sources, such as equipment manufacturers, leasing companies or financial institutions, as well as provide long-term contracts for excess electricity generated. Generating electricity on-site can power more than a business, it can also power a business’ profits.