61 Combined Heat and Power Statistics on Scale, Efficiency, and Potential

Combined heat and power (CHP) produces electricity and useful thermal energy from the same fuel or energy source. The U.S. data below covers installed capacity, facility counts, efficiency, emissions, wastewater biogas potential, program participation, and historical fuel-cell targets, with measurement periods and scope stated for each result.

Key Combined Heat and Power Statistics

The following highlights span the major U.S. CHP measures in the available official sources:

  • In July 2021, 81.7 GW of CHP capacity operated at more than 4,700 industrial and commercial facilities in the United States.
  • In July 2021, CHP represented 7% of U.S. electric generating capacity.
  • In July 2021, CHP represented 13% of U.S. industrial generating capacity.
  • In the July 2021 U.S. CHP database snapshot, 4,718 CHP sites were counted.
  • In the 2016 technical-potential study, Texas had 13,675 MW of remaining CHP technical potential.
  • In the 2016 technical-potential study, California had 11,542 MW of remaining CHP technical potential.
  • In July 2021, chemicals accounted for 29% of existing U.S. CHP capacity.
  • In July 2021, combined-cycle technology represented 51.3% of U.S. CHP capacity.
  • In July 2021, natural gas supplied 71% of the fuel shown for U.S. CHP installations.
  • In an undated EPA comparison, typical CHP total system efficiency was 65% to 80%.
  • In an illustrative EPA 1 MW comparison, CHP used 100 fuel units versus 155 for separate heat and power.
  • In that EPA 1 MW example, CHP reduced total fuel use by 35% under the stated assumptions.
  • In the July 2021 snapshot, U.S. CHP avoided more than 1.3 quadrillion Btu of fuel consumption annually.
  • In the July 2021 snapshot, U.S. CHP avoided 215 million metric tons of CO2 compared with separate production.
  • In the EPA wastewater analysis, U.S. wastewater facilities had more than 400 MW of additional biogas-based CHP electricity potential.
  • In the EPA wastewater analysis, approximately 38,000 MMBtu per day of additional thermal-energy potential was estimated.
  • In the wastewater year-round scenario, 411 MW of potential corresponded to 3,602,826 MWh of annual electricity production.
  • During summer 2018–2021, CHP Technical Assistance Partnerships completed 633 activities associated with an estimated 991 MW.
  • In the DOE 2022 opportunity scenario, meeting one quarter of CHP technical potential would save 1 quadrillion Btu annually.
  • For 1–25 kWe natural-gas stationary fuel-cell CHP, DOE listed 2015 electrical efficiency at 34% to 40% LHV.

Contents

U.S. Combined Heat and Power Scale, Sites, and Capacity

The DOE installation database snapshot for July 2021 counted 4,718 U.S. CHP sites and recorded 81.7 GW of installed capacity across them. The broader DOE market presentation describes more than 4,700 industrial and commercial facilities and estimates CHP at 7% of U.S. electric generating capacity and 13% of industrial generating capacity.

Measure U.S. result Period and scope
Installed CHP capacity 81.7 GW July 2021 database snapshot
CHP sites 4,718 July 2021 database snapshot
Share of electric generating capacity 7% July 2021 market estimate
Share of industrial generating capacity 13% July 2021 market estimate

Source: Combined Heat and Power (CHP) State of the Market, DOE installation database and market presentation. Capacity is installed or nameplate capacity in the database snapshot, while the two shares are reported estimates.

The same DOE source separates installed capacity from remaining technical potential. A 2016 technical-potential study estimated 13,675 MW in Texas and 11,542 MW in California; these figures describe technically possible additional CHP, not installed capacity or an economic deployment forecast.

Existing U.S. CHP capacity was concentrated in several energy-intensive industries in July 2021. These are capacity shares, not shares of facilities or installations.

Industry Share of existing U.S. CHP capacity Period
Chemicals 29% July 2021
Refining 19% July 2021
Pulp and paper 13% July 2021
Food processing 6% July 2021
Primary metals 5% July 2021
Other industrial users 11% July 2021
Utilities 4% July 2021
District energy 4% July 2021

The DOE presentation also reports the technology mix by capacity: combined-cycle systems represented 51.3%, boiler/steam-turbine systems 31.3%, combustion turbines 12.3%, reciprocating engines 3.4%, waste-heat-to-power systems 1.2%, and fuel cells 0.1% of U.S. CHP capacity in July 2021. The categories are not site counts, so a small number of large systems can strongly affect the percentages.

Natural gas supplied 71% of the fuel shown in the DOE CHP installation chart for July 2021. The source labels this as fuel type; readers should interpret it using the database definition rather than as a separate measure of site count or thermal output.

Source for the industry, technology, and fuel figures: Combined Heat and Power (CHP) State of the Market.

Combined Heat and Power Efficiency and Fuel-Use Data

Efficiency depends on the boundary used. Total system efficiency adds net useful electricity and useful thermal output, while effective electric efficiency credits avoided boiler fuel and is not the same metric.

Comparison Reported efficiency Scope
DOE CHP applications About 75% Illustrative typical value
Separate supplied services About 50% DOE comparison benchmark
EPA typical CHP total efficiency 65%–80% Typical system range
EPA upper-end CHP capability Near 90% Not a fleet average
U.S. fossil-fueled power plants 36% EPA comparison benchmark
Natural-gas boilers 75%–85% Typical range
Separate heat and grid power 50%–55% EPA benchmark

Sources: CHP Benefits and Fuel and Carbon Dioxide Emissions Savings Calculation Methodology for Combined Heat and Power Systems.

EPA’s illustrative 1 MW natural-gas reciprocating-engine example used 155 fuel units for separate heat and power and 100 fuel units for CHP, under assumptions including 36% electric efficiency, 80% CHP efficiency, and 8,000 operating hours. The stated comparison shows a 35% reduction in total fuel use; it is an illustrative calculation, not a fleet average.

For technology-specific effective electric efficiency, EPA reports 50%–70% for combustion-turbine CHP and 70%–85% for reciprocating-engine CHP. These ranges credit avoided boiler fuel and therefore should not be substituted for total system efficiency.

Source: Methods for Calculating CHP Efficiency.

Combined Heat and Power Emissions and Environmental Outcomes

DOE estimates that the U.S. CHP fleet avoided more than 1.3 quadrillion Btu of fuel consumption annually and 215 million metric tons of CO2 compared with separate production in its July 2021 snapshot. Both figures are avoided-production estimates, not direct measurements of every installation.

In EPA’s 1 MW example, annual CO2 emissions were estimated at 4,200 short tons for CHP versus 8,300 short tons for separate grid electricity and boiler heat. Under those assumptions, CHP emissions were about half of separate-production emissions; the example uses national-average marginal grid emissions.

DOE’s 2022 market presentation gives a typical net on-site natural-gas CHP range of 500–750 lb CO2-equivalent per MWh of electricity produced, including displaced thermal output from gas boilers. The range is an estimate for U.S. natural-gas CHP, not a universal operating result.

Source for the fleet estimate and natural-gas range: Combined Heat and Power (CHP) State of the Market. Source for the 1 MW example: CHP Benefits.

EPA’s wastewater analysis used 1,744.81 lb CO2/MWh as the national all-fossil average generation factor and a 6.2% U.S. average transmission-and-distribution line-loss rate. After that adjustment, the report used 1,860.14 lb CO2/MWh delivered; these are report inputs and a derived factor, not CHP operating rates.

Wastewater Combined Heat and Power and Biogas Potential

Anaerobic digesters can provide biogas for CHP at wastewater treatment facilities. EPA’s market analysis estimates more than 400 MW of additional biogas-based CHP electricity potential and approximately 38,000 MMBtu per day of additional thermal-energy potential at U.S. wastewater treatment facilities.

Wastewater measure EPA estimate or scenario Scope
Additional CHP electricity potential More than 400 MW U.S. wastewater facilities
Additional thermal-energy potential About 38,000 MMBtu/day U.S. wastewater facilities
Electric potential in detailed table 411 MW Facilities with anaerobic digesters
Annual electricity under year-round scenario 3,602,826 MWh Facilities with anaerobic digesters

The detailed table’s 411 MW scenario corresponds to 3,350,880 tons of annual displaced CO2, or 3,040,726 metric tons, using the report’s adjusted grid emissions factor. EPA also translates the scenario into 596,052 passenger-vehicle equivalents; that equivalency is a communications measure, not a direct vehicle count.

Retail electricity rates considered in the wastewater market analysis ranged from 3.9 cents to more than 21 cents per kWh. The range describes market context for wastewater facilities, not a national average or a universal CHP project price.

Source: Opportunities for Combined Heat and Power at Wastewater Treatment Facilities: Market Analysis and Lessons from the Field. The potential and emissions figures are scenario estimates based on anaerobic-digester facilities and year-round operation assumptions.

CHP Technical Potential, Resilience, and Fuel-Cell Targets

DOE CHP Technical Assistance Partnerships completed 633 technical-assistance activities associated with an estimated 991 MW during summer 2018–2021. The program identified 204 end-user partners and completed 303 end-user engagements, while stakeholder partners numbered 140 with 208 stakeholder engagements; these are participation and program-activity measures, not commissioned capacity.

DOE’s 2022 opportunity scenario estimated that meeting one quarter of U.S. CHP technical potential could save 1 quadrillion Btu annually and save energy users $10 billion per year. These are scenario estimates compared with current energy use, not observed outcomes.

For 1–25 kWe natural-gas stationary fuel-cell CHP, DOE listed 2015 electrical efficiency at 34%–40% LHV and CHP energy efficiency at 80%–90% LHV. Historical 2020 targets for the same residential/light-commercial range were above 45% electrical efficiency and 90% CHP energy efficiency; the targets are not verified deployment results.

Fuel-cell CHP measure 2015 status 2020 DOE target
1–25 kWe electrical efficiency 34%–40% LHV Above 45% LHV
1–25 kWe CHP energy efficiency 80%–90% LHV 90% LHV
5 kW-average equipment cost $2,300–$2,800/kW $1,500/kW

The equipment-cost figures are for a 5-kW-average residential/light-commercial natural-gas fuel-cell CHP system: the 2015 figure was a preliminary high-volume-production assessment, while $1,500/kW was a historical 2020 target rather than an observed market price. For 100 kW–3 MW natural-gas fuel-cell CHP, DOE also set a historical 2020 target of 90% LHV CHP energy efficiency.

Sources: Combined Heat and Power (CHP) State of the Market and DOE Technical Targets for Fuel Cell Systems for Stationary (Combined Heat and Power) Applications. Fuel-cell targets are historical forecasts, not verified outcomes.

EIA’s CHP series uses Forms EIA-923, EIA-906, and EIA-920, with methodology changes beginning with 2016 data for separating electricity-generation fuel from useful thermal-output fuel; those series should be interpreted with that note in mind.

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