microcogeneration

Microcogeneration, or micro combined heat and power (micro-CHP), refers to small-scale cogeneration systems that simultaneously generate electricity and useful heat in a single integrated process. Typically designed for residential or small commercial applications, micro-CHP units deliver up to roughly 5 kilowatts of electric power, with total thermal output sized to meet local heating or hot water loads. By capturing heat that would otherwise be wasted in electricity generation, these systems can achieve high overall energy efficiency and reduced fuel use compared with separate heat and power production.

The technologies used include internal combustion engines, Stirling engines, microturbines and fuel cells. Most systems run on natural gas or biogas, but some can use propane, liquid fuels, or hydrogen blends. The heat recovered from power production can be used for space heating and domestic hot water, with some designs including thermal storage. Micro-CHP can be configured for heat-led or electricity-led operation and is often integrated with conventional boilers, heat pumps or building management systems. In operation, electricity may be consumed on site and any surplus exported to the grid, subject to local interconnection rules and compensation schemes.

Benefits include higher overall efficiency, lower operating costs where heat demand is substantial, reduced greenhouse gas emissions compared to separate generation, and enhanced energy resilience during grid outages in some configurations. The economic case depends on fuel prices, electricity tariffs, and available incentives. Common challenges include higher upfront capital cost and ongoing maintenance, the need for appropriate space, potential noise and emissions from some prime movers, and regulatory barriers related to grid interconnection and incentives. Policy support, such as subsidies, tax credits, or favorable tariffs, has driven adoption in several regions, particularly in Europe, Japan, and parts of North America. Market uptake varies with climate, building stock, and regulatory context.