Buying CHP and Cogeneration - the Process

The mission of Alfagy is to increase the use of cost-effective, environmentally beneficial CHP projects nationwide. To accomplish this mission, Alfagy has developed resources to assist energy users to design, install, and operate CHP systems at their facilities.

In order for the process to advance smoothly, a CHP Champion is necessary—someone who has the interest and the will to guide the project from conception to completion. The following pages will help you become an educated CHP Champion who can save your organisation time and money, reduce business risk and environmental impacts, and improve the power reliability of your facility.


These pages provide information, tools, and hints on project development, CHP technologies, and the resources of Alfagy. Resources are available throughout the process and are divided into five stages:

Step 1: Qualification (click to view)

Goal: Determine whether CHP is worth considering at a candidate facility.



Step 2: Level 1 Feasibility Analysis (click to view)

Goal: Identify project goals and potential barriers. Quantify technical and economic opportunities while minimizing time and effort.



Step 3: Level 2 Feasibility Analysis (click to view)

Goal: Optimise CHP system design, including capacity, thermal application, and operation. Determine final CHP system pricing and return on investment.



Step 4: Procurement (click to view)

Goal: Build an operational CHP system according to specifications, on schedule and within budget.



Step 5: Operation & Maintenance (click to view)

Goal: Maintain a CHP system that provides expected energy savings and reduces emissions by running reliably and efficiently.

CHP projects have proven to be cost-effective, efficient, and reliable at many industrial, institutional, and large commercial facilities nationwide.


In order to maximise the energy and economic benefits that CHP offers, projects are designed to meet a specific site's operational needs and to integrate seamlessly into existing mechanical and electrical systems. Due to the complexity of the design process, procurement can become complicated and time-consuming. Commonly, delays occur when the project's goals (e.g., reducing energy costs, increasing reliability, expanding capacity, etc.) are not clearly outlined and accounted for throughout each stage of the planning and implementation process. As the CHP Champion, you must keep these goals in mind while facilitating each stage of the CHP system's implementation.


While your specific CHP project development experience will be unique, an understanding of the CHP development process will help you overcome common obstacles at your facility. The following five pages outline questions, issues, and specific choices that must be addressed by all CHP projects, organised in stages 1 through 5. Reviewing these pages will help you better understand the project development process in general and smooth the way for your own project's successful implementation and operation.


Alfagy has developed resources to help at each stage of project development. We also have CHP industry Partners who can assist energy users throughout their CHP project development process. Follow the links within these pages for information about our services and how to access them.