Combined Heat and Power 

Energy Savings & Energy Security 

for Resort Hotels and Casinos 

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 resort hotel or 

casino. CHP can: 

�	 Reduce operating costs and control rising
 

energy costs.
 

�	 Ensure the availability of reliable electricity 

supply for guest comfort, security, and business 

continuity. 

�	 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 using the waste heat 

from onsite electricity production for heating or 

cooling, CHP increases fuel efficiency and decreases 

energy costs. 

For hotel and casino resorts with more than 500 

rooms, CHP system sizes typically range from 

1 megawatt (MW) to 10 MW, depending on the size 

and energy requirements of the facility. 

For information on CHP systems for smaller hotels, see the EPA CHP Partnership’s companion fact sheet, 


CHP for Mid-Size to Large Hotels, available at www.epa.gov/chp/pdf/chp_hotelfs_web.pdf.
 
What Can CHP Do for You? 

Ensure the Reliability of Electricity Supply 

CHP provides a reliable source of energy to keep 

resort hotel and casino guests comfortable and safe 

by producing simultaneous power and heat 24 hours 

a day, seven days a week. Given that power outages 

can cost casinos more than $1 million a day in lost 

revenue, the potential reliability benefits of CHP are 

significant. CHP integrates seamlessly into existing 

heating and electrical systems, providing a steady 

supply of hot or chilled water, and it can be designed 

to continue to operate and provide power in the 

event of a utility outage. 

In addition, CHP systems provide high-quality 

power that can stabilize voltage and current sags, 

spikes, transients, and phase voltage imbalances. 

Insuring against these types of power quality 

problems can be particularly beneficial for 

computers, electronics, and security equipment 

at a casino. 

Increase Energy Efficiency and Improve 

Environmental Performance 

CHP reduces operating costs while improving 

environmental performance. The power and heat 

produced on site by a CHP system offsets purchases 

of electricity and fuel for boilers. The same 

reductions in purchased electricity that provide 

energy cost savings also reduce the environmental 

impact of hotel and casino operations by reducing air 

pollution. CHP is a sound practice for energy 

efficiency in hotels and casinos, and it will reduce 

the property’s environmental impact through 

reduced fuel consumption. 

Reduce Energy Costs 

CHP offers a solution to control spiraling energy 

costs and can be a central component of a fuelhedging strategy for large resorts and casinos. 

The hospitality industry spends nearly $4 billion 

per year on energy. Fuel prices are at a record high, 

and increasing energy costs are a major concern 

for resort hotels and casinos, 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. 

A market analysis1 of hotels and casinos developed 

by EPA’s CHP Partnership shows that there are more 

than 500 large hotels and casinos in the United 

States that have energy characteristics suitable for 

current CHP technology. More than 170 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/project_resources/hotels.htm
CHP in Use at U.S. Resort Hotels and Casinos 

At least 16 resort hotels and casinos with more than 500 rooms in the United States currently have CHP 

systems, and an increasing number of hotels and casinos are choosing CHP systems to meet their energy 

needs. Of the existing CHP systems in the hotel 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. 

Harrah’s Rio All Suite Hotel and Casino, Las Seneca Niagara Falls Casino, New York 

Vegas, Nevada Having experienced the 2003 Northeast blackout, 

The Rio All Suite Hotel and Casino is a large the Seneca Niagara Falls Casino, operated by the

casino resort located in Las Vegas. The hotel Seneca Gaming Corporation in Niagara Falls, New

York, installed and began operating a new CHP includes 2,800 suites, 15 restaurants, theaters and 

system in December 2005. The system was lounges, gaming rooms, and other facilities. 

designed to operate in the event of a utility outage, The Rio’s CHP system is the first CHP system at a providing back-up power to allow the Seneca Las Vegas casino. It was installed in 2004 to Casino to remain operational in the event of a reduce the Rio’s $9 million annual energy bill. The catastrophic failure of the electric grid. The CHP CHP system consists of six natural gas-fired plant utilizes three 2 MW natural gas-fueled reciprocating engines with a total capacity of reciprocating engine/generator sets to generate 4.9 MW. The system started operation on May 1, approximately 6 MW of power. During peak load, 2004, and generates 40 percent of the electricity, the CHP system meets approximately 73 percent 60 percent of the hot water, and 65 percent of the of the casino’s electricity needs. heating requirements of the resort. By generating 

power and thermal energy more efficiently than the The CHP system was sized to meet the thermal load 

hotel can purchase from the local utility, the Rio of the facility, providing space heating and cooling, 

saves $1.5 million annually. The unit has been as well as domestic hot water for the casino. During

available and operating more than 95 percent of the summer months, the system is expected to meet

100 percent of the casino’s thermal needs and is the time. 

expected to pay for itself within four years. 

Options for CHP in Resort Hotels 

and Casinos 

CHP technologies are flexible, providing a wide range 

of sizing options. The right CHP system for your hotel 

or casino will be determined through consultations 

and analysis that will include a site-specific evaluation 

of your facility’s electricity and thermal loads. 

CHP is typically sized to match the thermal demand 

of the hotel or casino and usually provides 50 to 70 

percent of a facility’s electricity needs. This approach 

to CHP system design—known as thermal baseloading—maximizes both the efficiency and the 

return on investment for CHP. Space cooling 

represents the main thermal load met by a CHP 

system at a large hotel or casino. Space heating, water 

heating, 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, resort 

hotels and casinos might want to consider installing 

CHP instead of new boilers or chillers to help offset 

capital equipment costs. 

Resort hotels and casinos with more than 500 rooms 

can generally use 1 to 10 MW CHP systems with 

industrial gas turbines or large reciprocating engines 

to produce power for the facility’s baseload needs, and 

the high temperature exhaust can be converted to 

steam in heat recovery steam generators to provide 

both air conditioning and heating. 

Various types of maintenance and service contracts 

are available for CHP systems, including 

comprehensive maintenance, service, and operations. 

Alternately, existing staff can be trained to perform 

maintenance for the system. 
What Resources Are Available? 

Technical Assistance 

The CHP Partnership has developed services and 

tools to assist those considering CHP for 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), along with lists of regulatory 

rules and utility rates that are advantageous to CHP. 

This information is updated twice per month at 

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

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. 

Is My Hotel or Casino a Good Fit

for CHP? 

• Do you pay more than 7 cents per kilowatthour for electricity? 

• Are you concerned about high or rising 

utility costs? 

• Are you considering adding or replacing 

backup generators? 

• Does your hotel or casino have a central 

chilled water system? 

• Are you planning an expansion, new 

construction, or a major retrofit of your 

hotel or casino’s HVAC system? 

• Are you interested in reducing the 

environmental impact of your hotel or 

casino’s operations? 

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

questions, your facility might be a good 

candidate for CHP. 

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 us. 

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

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

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 February 28, 2007