COGENERATION

Cogeneration Fast Facts

In 2007 there were 7,200 MW of cogeneration capacity
in Canada.
Cogeneration systems in operation worldwide have a
combined electrical capacity of 240,000 MW.
Between 1996 and 2006, use of cogeneration in the
Alberta Oil Sands allowed production to increase by
more than 100% but required only an estimated 56%
increase in energy input.

Cogeneration Basics
Cogeneration, or combined heat and power (CHP), is
the simultaneous production of electrical and thermal
energy. The waste heat from electricity generation is
recovered and used for applications such as space
heating and cooling, water heating, and industrial process heat. By making use of the waste from one process in the production of the other, substantial gains in
energy efficiency can be realized.

A cogeneration facility is comprised of four components: the power plant, the heat recovery and distribution system, an optional system for satisfying heating
and/or cooling loads, and a control system.1 A range of
technologies can be used to achieve cogeneration, including steam turbines, gas turbines, reciprocating engines, microturbines, fuel cells, and Sterling engines.
Cogeneration can be implemented at a range of scales,
from large scale systems serving communities or large
industrial complexes, to independent energy supplies
for hospitals or universities. Since heat is not easily
transported, facilities must be located near their thermal hosts or users of thermal energy.
System efficiency and heat output characteristics are
important attributes of cogeneration. System efficiency
is the percent of fuel converted to electricity plus the
percent converted to useful thermal energy. Most cogeneration systems have overall efficiencies between
65% and 85%. Heat output from cogeneration systems
varies depending on the system type. High pressure,
high temperature steam is considered high quality
thermal output and can be used to meet most industrial
1

Natural Resources Canada, RETScreen International, www.retscreen.net

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process needs. Hot water is considered low quality and

can be used only for limited thermal applications.2

Cogeneration in Canada
In 2007 there were 7,200 MW of cogeneration capacity
in Canada. Alberta has the most cogeneration capacity
in Canada, the majority of which serves the oil and gas
industry. Cogeneration in Ontario serves a broader
range of industries, including manufacturing, forest
products, hospitals and universities. The majority of cogeneration capacity in British Columbia, Manitoba,
Quebec and the Maritimes serves the forest products
industry.
The technology has experienced two significant growth
periods, the first of which occurred in the 1970s in response to rising energy prices and a perceived scarcity
of energy resources. The second began in 1990 due to
public protest over large-scale energy projects, smaller
systems becoming more cost effective, and deregulation in Alberta stimulating the development of larger,
grid-connected cogeneration systems.3

More than half of all cogeneration capacity in Canada is

owned and/or operated by the utility sector. However,
the largest thermal host of cogeneration in Canada is
the paper manufacturing sector.

Benefits of Cogeneration
By using outputs and waste from one process as inputs
to other processes, cogeneration systems have the potential to increase fuel efficiency, reduce energy costs,
reduce greenhouse gas (GHG) emissions, and reduce
releases of ozone depleting chlorofluorocarbons
(CFCs) from air conditioning units.4
The benefits of cogeneration are maximized when the
production of electricity is maximized and the thermal
load requirements of the host are closely matched. If
the thermal output is greater than necessary, excess
thermal energy is produced that could have been used
to generate more electricity.
Location of cogeneration near load for heat means
electricity is produced closer to load than centralized
power production. This distributed energy approach
allows for geographically dispersed generating plants,
reduces transmission losses, and provides spare and
process heating/cooling for buildings.5
Most of the worlds electricity is generated by rotating
machinery that is driven by the combustion of fuels. As
a result, cogeneration systems have enormous potential for growth.
The adoption of cogeneration in the Alberta Oil Sands
has improved environmental, economic and emissions
results. Between 1996 and 2006, use of cogeneration
allowed production to increase by more than 100 percent but required only an estimated 56 percent increase in energy input. Net GHG emissions were 30
percent lower than they would have been using traditional coal fired power supply as a result of conversion
to natural gas for electrical energy and increased efficiency from cogeneration.6

Canadian Industrial Energy End-Use Data and Analysis Center (CIEEDAC),

www.cieedac.sfu.ca
Canadian Industrial Energy End-Use Data and Analysis Center (CIEEDAC),
www.cieedac.sfu.ca

4
5
6

Environment Canada, Clean Air Online, www.ec.gc.ca/cleanair-airpur

Natural Resources Canada, RETScreen International, www.retscreen.net
Cogeneration and On-Site Power Production, July 2007, www.cospp.com

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Challenges to
Development
Siting of cogeneration can be challenging, as facilities
must be located near their thermal hosts, as well as
near an area of the grid that requires additional capacity in order to maximize efficiency. In addition, integrating distributed energy sources into the electricity grid
may require transmission and distribution system upgrades.
Many players must work together in the development
and operation of a cogeneration facility, including the
electricity generator, the utility that distributes the electricity, and the thermal host. The distribution utility must
be willing to purchase power from the generator, and
may put restrictions or costs on connecting to the grid.
In addition, the thermal host may have fluctuating heat
requirements which are difficult for the system to follow.

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