Abstract
In an environment of increasing energy prices and market volatility,combined heat and power (CHP) offers the energy manager both thepotential for cost savings and increased flexibility to better deal with andrespond to changes in energy markets. CHP should be viewed as asource of thermal energy that also produces power as a byproduct. Inmost cases, CHP will have difficulty competing with utility-scale genera-tion in wholesale power markets, but can be attractive offsetting pur-chased power while increasing power reliability and constituting animportant element in a corporate energy risk management portfolio.
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