Combined
Heat
and
Power



An
Energy
Efficient
Choice
for
Mid-Size
to


Large
Hotels


Combined
heat
and
power
(CHP),


also
known
as
cogeneration,
can
be


an
excellent
solution
for
controlling


energy
costs
while
improving
the


reliability
of
power
supply
for
your
hotel.


With
CHP,
your
hotel
can:


� Reduce
operating
costs
and
control


rising
energy
costs.


� Ensure
the
availability
of
reliable


hot
water
and
electricity
supply.


� Increase
energy
efficiency
and



improve
environmental



performance.



What
Is
CHP?


CHP
is
the
production
of
both
power


and
heat
from
a
single
fuel
source.
By


making
use
of
the
waste
heat
from
onsite
electricity
production
for
heating
or


cooling,
CHP
increases
fuel
efficiency


and
decreases
energy
costs.


For
hotels
with
100
to
500
rooms,
CHP


system
sizes
typically
range
from
60


kilowatts
(kW)
to
350
kW,
depending


on
the
size
and
energy
requirements
of


the
hotel.


For	information	on	CHP	systems	for	hotels	and	casinos	

with	more	than	500	rooms,	see	the	CHP	Partnership’s	

companion	fact	sheet,	CHP for Resort Hotels and Casinos.1 

What
Can
CHP
Do
for
You?


Reduce
Energy
Costs


With
fuel
prices
at
a
record
high,
energy


costs
have
been
rising
for
hotels.
CHP


offers
a
solution
to
control
energy
costs.


The
hospitality
industry
spends
nearly
$4


billion
per
year
on
energy.
Increasing


energy
costs
are
a
major
concern
for


hotels,
particularly
as
demand
for
more


hotel
amenities,
such
as
restaurants,


lounges,
retail
shops,
and
recreational


facilities,
has
increased
electricity
and


natural
gas
consumption
industry-wide.


The
market
analysis
for
hotels
and
casinos


developed
by
EPA's
CHP
Partnership1


shows
that
about
10,000
of
the
nearly


48,000
hotels
in
the
United
States
have


energy
characteristics
suitable
for
current


CHP
technology.
More
than
1,000
of


these
sites
are
likely
to
meet
a
simple


payback
on
their
investment
within
five


years
or
less.


1
Available
at
www.epa.gov/chp/documents/hotel_casino_analysis.pdf
Increase
Energy
Efficiency
and
Improve
 Ensure
the
Availability
of
Hot
Water
and


Environmental
Performance
 Electricity
Supply


With
the
improved
efficiency
of
CHP,
operating
and
 CHP
provides
a
reliable
source
of
energy
to
keep


maintenance
costs
are
reduced
while
environmental
 hotel
guests
comfortable
and
safe
by
producing


performance
is
improved.
The
power
and
heat
 simultaneous
power
and
heat
24
hours
a
day,
7
days
a


produced
on
site
by
the
CHP
system
offsets
 week.
CHP
integrates
seamlessly
into
existing


purchases
of
electricity
and
fuel
for
boilers.
The
same
 heating
and
electrical
systems,
provides
a
steady


reductions
in
purchased
electricity
that
provide
 supply
of
hot
water,
and
can
be
configured
to
provide


energy
cost
savings
also
reduce
the
environmental
 backup
power
in
the
event
of
a
utility
outage.


impact
of
hotel
operations
by
reducing
air
pollution.


CHP
is
a
best
practice
for
energy
efficiency
in
hotels


and
will
reduce
your
property’s
environmental


impact
through
reduced
electricity
consumption.


CHP
in
Use
at
U.S.
Hotels


In
2007,
109
hotels
in
21
states
were
utilizing
CHP
systems,
representing
more
than
70
MW
of
electricity


capacity.

Of
the
existing
CHP
systems
in
the
hotels
sector,
the
majority
are
reciprocating
engine
systems


operating
on
natural
gas.
Many
of
these
systems
were
installed
during
the
late
1980s
and
are
continuing
to


operate
reliably
and
efficiently
today.
In
recent
years,
the
mix
of
technologies
used
for
CHP
has
broadened
to


include
microturbine,
fuel
cell,
and
gas
turbine
installations.


The
following
case
studies
provide
examples
of
recent
successful
CHP
installations
at
hotels.


Embassy
Suites
Hotel,
San
Luis
Obispo,
 Starwood’s
Sheraton
New
York
Hotel
and



California
 Towers



The	Embassy	Suites	Hotel	in	San	Luis	Obispo,	 In	June	2005,	Starwood	Hotels	and	Resorts	

California	is	a	full­service	hotel	with	196	guest	 Worldwide	Inc.,	a	Partner	in	the	CHP	Partnership,	

rooms,	11	meeting	rooms,	a	pool	and	fitness	 began	operating	a	250­kW	fuel	cell	CHP	system	at	

center,	and	a	restaurant	and	lounge.	PowerHouse	 the	Sheraton	New	York	Hotel	and	Towers,	a	1,750­

Energy	(PHE),	a	Partner	in	the	CHP	Partnership,	 room	facility	and	the	brand’s	flagship	property.	The	

installed	an	85	kW	CHP	system	at	the	hotel	in	 fuel	cell	was	manufactured	by	FuelCell	Energy,	

July	2005.	 another	Partner	in	the	CHP	Partnership,	and	is	

owned,	operated,	and	maintained	by	PPL	 The	reciprocating	engine­based	system	provides	 Corporation. approximately	40	percent	of	the	hotel’s	average	

electrical	demand	and	more	than	75	percent	of	the	 The	CHP	system—fueled	by	natural	gas	and	

average	thermal	demand	(including	all	domestic	 located	on	a	fourth­floor	rooftop—provides	about	

hot	water	needs	during	the	summer	months).	 10	percent	of	the	hotel’s	electricity	and	hot	water	

and	is	designed	to	supply	backup	electricity	for	a The	Embassy	Suites	management	chose	to	have	 portion	of	the	hotel.	The	system	will	save	Starwood	 PHE	install,	own,	and	operate	the	system,	 an	estimated	$70,000	per	year	in	energy	costs.	 guaranteeing	the	hotel	an	energy	savings	on	their	 The	New	York	State	Energy	Research	and	 electrical	and	thermal	energy	costs.	The	CHP	 Development	Authority	provided	a	grant	for	the	 system	installed	at	the	hotel	provides	typical	 system	through	its	Distributed	Generation	and	 savings	of	$900	to	$1,200	per	month,	which	should	 CHP	Program.	 save	Embassy	Suites	$180,000	over	the	15­year		

life	of	the	energy	service	contract.		

*
For
more
information
on
these
and
other
Partners
in
the
CHP
Partnership,
visit
our
Web
site
at
www.epa.gov/chp/chp_partners.htm.
Options
for
CHP
in
Hotels


CHP
technologies
are
flexible,
providing
a
wide
range


of
sizing
options.
The
right
CHP
system
for
your
hotel


will
be
determined
through
consultations
and
analysis


that
will
include
a
site-specific
evaluation
of
your


hotel’s
electricity
and
thermal
loads.


CHP
is
typically
sized
to
match
the
thermal
demand


of
the
hotel
and
usually
provides
50
to
70
percent
of


a
hotel’s
electricity
needs.
This
approach
to
CHP


system
design,
known
as
thermal
base-loading,


maximizes
both
the
efficiency
and
the
return
on


investment
for
CHP.
Water
heating
is
often
the


main
thermal
load
met
by
a
CHP
system.
Space


heating,
space
cooling,
laundry,
restaurant,
and
pool


heating
loads
can
also
be
met
by
an
appropriately


sized
CHP
system.
During
the
design
phase
of
a
new


construction
project
or
when
adding
or
replacing


boilers
or
chillers,
hotels
might
want
to
consider


installing
CHP
instead
of
new
boilers
or
chillers
to


help
offset
capital
equipment
costs.


Hotels
in
the
100-
to
300-room
size
range
can
use


small
60
to
250
kW
CHP
systems
with
reciprocating


engines,
fuel
cells,
or
microturbines
that
supply
hot


water
for
domestic
hot
water,
space
heating,
and


laundry
needs.
Larger
hotels
with
central
cooling


systems
can
use
larger
CHP
systems
(i.e.,
300
kW


and
greater)
by
incorporating
absorption
chillers
that


increase
thermal
energy
recovery
and
provide
both


air
conditioning
and
heating.


Because
maintenance
and
service
contracts
are


available
for
the
type
of
CHP
systems
that
are


suitable
for
a
typical
hotel,
no
additional
expertise
or


expense
on
the
part
of
facility
staff
is
required.


You
might
also
want
to
consider
a
broader
effort
to


benchmark
the
overall
energy
use
of
your
hotel.
By


following
ENERGY
STAR®
strategies
for
energy


management,
your
company
can
take
control
of


Is
My
Hotel
a
Good
Fit
for
CHP?


•		Do
you
have
more
than
100
rooms?*


•		Do
you
pay
more
than
7
cents
per


kilowatt-hour
for
electricity?*


•	 Have	you	already	implemented	other	

energy	efficiency	measures?	

•	 Are	you	concerned	about	rising	utility	

costs?	

•	 Do	your	guests	complain	of	insufficient	hot	

water?	

•	 Has	your	hotel	ever	experienced	a	utility	

outage?	

•	 Does	your	hotel	have	a	central	chilled	

water	system?	

•	 Are	you	planning	to	add	new	boilers	or	

replace	existing	boilers?	

If	you	answered	“yes”	to	three	or	more	of	these	

questions,	your	hotel	might	be	a	good	

candidate	for	CHP.	

*If
the
answer
to
either
of
these
first
two


questions
is
“no,”
CHP
probably
will
not
be


a
strong
economic
or
technical
fit
for
your


hotel.
Please
consider
the
many
other


energy
efficiency
measures
available
to


hotels
to
decrease
energy
costs
and


improve
facility
operations.
Resources


containing
additional
information
are
listed


on
the
back
of
this
fact
sheet.


energy
costs,
improve
your
bottom
line,
and
help


protect
the
environment.
In
fact,
pursuing
energy


efficiency
improvements
before
installing
a
CHP


system
will
help
ensure
that
you
have
taken


advantage
of
existing
energy
savings
opportunities


and
that
you
will
install
a
correctly
sized
system.

What
Resources
Are
Available?


Technical
Assistance


The
CHP
Partnership
has
developed
services
and


tools
to
assist
those
considering
implementing
CHP


at
their
facilities.
Visit
the
Streamlining
Project


Development
pages
of
our
Web
site
at
www.epa.gov/

chp/project_resources.htm to
learn
more
about
the


CHP
project
development
process,
whom
to
involve


on
your
CHP
project
team,
typical
options
for
system


financing,
and
other
services
EPA
provides.


Project
Resources


Take
advantage
of
the
CHP
Partnership’s
up-to-date


lists
of
state
and
federal
incentives
(e.g.,
rebates,
tax


credits,
loans,
grants)
for
CHP,
along
with
lists
of


regulatory
rules
and
rates
that
are
advantageous
to


clean
distributed
generation.
This
information
is


updated
twice
per
month
on
the
Funding
Resources


pages
of
our
Web
site
at


www.epa.gov/chp/funding_opps.htm.

What’s
the
Next
Step?


EPA
staff
are
available
to
answer
your
questions
and


provide
specific
technical
support
for
your
project.


For
information
about
how
EPA
can
support
your


evaluation
and
implementation
of
CHP,
contact


EPA’s
CHP
Team.


Call
Neeharika Naik-Dhungel (202)
343-9553
or


e-mail
her
at naik-dhungel.neeharika@epa.gov.

Public
Recognition


EPA
and
the
U.S.
Department
of
Energy
recognize


highly
efficient
CHP
projects
that
achieve
fuel
and


emissions
savings
over
comparable
state-of-the-art


separate
heat
and
power
with
an
ENERGY
STAR


CHP
Award.
EPA
accepts
award
applications


continuously
and
presents
awards
at
key
events.
For


more
information
on
applying
for
an
ENERGY


STAR
CHP
Award
for
your
hotel,
visit


www.epa.gov/chp/public-recognition/awards.html.


EPA’s	ENERGY	STAR	provides	guidance	on	

pursuing	strategic	energy	management	programs	

in	hotels	and	resources	to	benchmark	your	

property’s	energy	performance.	See	

www.energystar.gov/hospitality. 

ENERGY	STAR	is	a	

government­backed	program	

helping	businesses	and	

individuals	protect	the	

environment	through	superior	

energy	efficiency.	

The
EPA
CHP
Partnership


The CHP Partnership is a voluntary program 

designed to foster cost-effective CHP projects. 

Through the Partnership, EPA engages energy 

users, the CHP industry, state and local 

governments, and other stakeholders in cooperative relationships to 

expand the use of CHP. Information about our services and program 

offerings is available on our Web site: www.epa.gov/chp. 

Last
updated
March
19,
2008