Reliability & Quality
CHP improves power reliability and avoids costs due to power outages or degraded power quality.

In times of disaster, CHP capable of operating in "island mode" may keep facilities on-line when regional electric power fails. As Hurricanes Katrina and Rita amply demonstrated, the petrochemical and refinery market is vulnerable to electrical grid disruptions. Pipeline pumping stations, gas processing plants, gas storage facilities and refineries all lost power.1 According to Congressional testimony by the Congressional Budget Office, "Nearly half the losses in business structures and equipment will have been in the energy industry."4

Even backup generators may not be sufficient. Washed out roads and damaged trucks made refueling of backup generators difficult. However, natural gas was not compromised by the storms. Natural gas-fired CHP would have continued operating.5

Even ordinary power disruptions can also be costly. Based on a study of 300 sites in the US, serviced by 24 different utilities on a total of 100 separate distribution lines, each site suffered on average 8.5 momentary or longer power interruptions per year.2 Direct, bottom line costs to US industrial facilities for power disruptions have been estimated at $120 to $190 Billion per year.2

Power disruptions can negatively impact operations by:2

• Slowing down or stopping production
• Reducing or ruining product quality
• Damaging equipment
• Increasing maintenance costs
• Increasing labor costs

And none of these bullets touch on national security. The 2003 blackout in the US Northeast and the 2005 hurricane season underscore the inherent weakness of the U.S. power distribution system. Industries critical to national security, such as the petrochemical and refining industries, should consider making CHP part of their business continuity solution.

To see a case study of how CHP can help during a disaster, go to Tale of Two Hospitals ().

The petrochemical and refining market is vulnerable to variations in power quality, such as voltage sags and spikes. These variations can damage or reset equipment and increase maintenance and labor costs. CHP integrated into a facility's power-quality protection system can eliminate the need for separate backup diesel generators.

A continuously operating CHP unit can reduce vulnerabilities to even momentary sags and spikes.2 At the highest level of protection, CHP combined with UPS (uninterruptible power supply) can virtually eliminate power reliability and quality concerns. A 2005 study modeling the time-between-disruption events using selected distributed generation solutions, demonstrated a shift in estimated mean time between disruptions from several per year with no protection, to an interval of 27 years using CHP with UPS.2 Keep in mind that these results are based on model assumptions; so it is important to carefully evaluate your specific project.

Before CHP is incorporated into a power quality system, thoughtful planning must be given to the interconnection design between the CHP and the utility grid, and if used, between the CHP and the UPS. Poor design can create entirely new power problems due to incompatibilities between system elements. These can be resolved, but careful thought must be given to the issue.2

If you are considering CHP for your facility, be sure to factor in the benefits of having reliable, high quality power.