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e world due to rising energy costs the development of micro chp systems has also been facilitated by recent technological developments of small heat engines this includes improved performance and cost effectiveness of fuel cells stirling engines steam engines gas turbines diesel engines and otto engines combined heat and power chp systems for homes or small commercial buildings are usually fueled by natural gas to produce electricity and heat 12 if no access to the natural gas network is available which in general is the cheapest alternative lpg lng or heating fuel diesel might be an alternative the pemfc fuel cell mchp operates at low temperatures 50 to 100 c and needs high purity hydrogen it is prone to contamination changes are made to operate at higher temperatures and improvements on the fuel reformer the sofc fuel cell mchp operates at a high temperature 500 to 1 000 c and can handle different fuel sources well but the high temperature requires expensive materials to handle it changes are made to operate at a lower temperature because of the higher temperature the sofc in general has a longer start up time and needs continuous heat output even at times when there is no thermal demand chp systems linked to absorption chillers can use waste heat for refrigeration 13 a 2013 uk report from ecuity consulting stated that mchp is the most cost effective method of utilizing gas to generate energy at the domestic level 14 15 the fuel cell industry review stated in 2013 that with 64 of global sales the fuel cell micro combined heat and power had passed the conventional engine based micro chp systems in sales in 2012 16 technologies edit micro chp engine systems are currently based on several different technologies 17 internal combustion engines stirling engines fuel cell microturbines steam engine steam motor 18 using either the traditional water or organic chemicals such as refrigerants fuels edit there are many types of fuels and sources of heat that may be considered for micro chp the properties of these sources vary in terms of system cost heat cost environmental effects convenience ease of transportation and storage system maintenance and system life some of the heat sources and fuels that are being considered for use with micro chp include natural gas lpg biomass vegetable oil such as rapeseed oil woodgas solar thermal and lately also hydrogen as well as multi fuel systems the energy sources with the lowest emissions of particulates and net carbon dioxide include solar power hydrogen biomass with two stage gasification into biogas and natural gas due to the high efficiency of the chp process cogeneration has still lower carbon emissions compared to energy transformation in fossil driven boilers or thermal power plants 19 20 the majority of cogeneration systems use natural gas for fuel because natural gas burns easily and cleanly it can be inexpensive it is available in most areas and is easily transported through pipelines which already exist for over 60 million homes 21 engine types edit reciprocating internal combustion engines are the most popular type of engine used in micro chp systems 12 reciprocating internal combustion engine based systems can be sized such that the engine operates at a single fixed speed usually resulting in a higher electrical or total efficiency however since reciprocating internal combustion engines have the ability to modulate their power output by changing their operating speed and fuel input micro chp systems based on these engines can have varying electrical and thermal output designed to meet changing demand 22 natural gas is suitable for internal combustion engines such as otto engine and gas turbine systems gas turbines are used in many small systems due to their high efficiency small size clean combustion durability and low maintenance requirements gas turbines designed with foil bearings and air cooling operate without lubricating oil or coolants the waste heat of gas turbines is mostly in the exhaust whereas the waste heat of reciprocating internal combustion engines is split between the exhaust and cooling system external combustion engines can run on any high temperature heat source these engines include the stirling engine hot gas turbocharger and the steam engine both range from 10 20 efficiency and as of 2014 small quantities are in production for micro chp products other possibilities include the organic rankine cycle which operates at lower temperatures and pressures using low grade heat sources the primary advantage to this is that the equipment is essentially an air conditioning or refrigeration unit operating as an engine whereby the piping and other components need not be designed for extreme temperatures and pressures reducing cost and complexity electrical efficiency suffers but it is presumed that such a system would be utilizing waste heat or a heat source such as a wood stove or gas boiler that would exist anyway for purposes of space heating the future of combined heat and power particularly for homes and small businesses will continue to be affected by the price of fuel including natural gas as fuel prices continue to climb this will make the economics more favorable for energy conservation measures and more efficient energy use including chp and micro chp fuel cells edit fuel cells generate electricity and heat as a by product the advantages for a stationary fuel cell application over stirling chp are no moving parts less maintenance and quieter operation the surplus electricity can be delivered back to the grid 23 pemfc fuel cells fueled by natural gas or propane use a steam reformer to convert methane in the gas supply into carbon dioxide and hydrogen the hydrogen then reacts with oxygen in the fuel cell to produce electricity 24 a pemfc fuel cell based micro chp has an electrical efficiency of 37 lhv and 33 hhv and a heat recovery efficiency of 52 lhv and 47 hhv with a service life of 40 000 hours or 4000 start stop cycles which is equal to 10 year use an estimated 138 000 fuel cell chp systems below 1 kw had been installed in japan by the end of 2014 17 most of these chp systems are pemfc based 85 and the remaining are sofc systems in 2013 lifetime is around 60 000 hours for pem fuel cell units which shut down at night this equates to an estimated lifetime of between ten and fifteen years 25 united states department of energy doe technical targets 1 10 kw residential combined heat and power fuel cells operating on natural gas 26 development of fuel cells type 2008 2012 2015 2020 electrical efficiency at rated power 2 34 40 42 5 45 chp energy efficiency 3 80 85 87 5 90 factory cost 4 750 kw 650 kw 550 kw 450 kw transient response 10 90 rated power 5 min 4 min 3 min 2 min start up time from 20 c ambient temperature 60 min 45 min 30 min 20 min degradation with cycling 5 2 1000 h 0 7 1000 h 0 5 1000 h 0 3 1000 h operating lifetime 6 6 000 h 30 000 h 40 000 h 60 000 h system availability 97 97 5 98 99 1 standard utility natural gas delivered at typical residential distribution line pressures 2 regulated ac net lower heating value of fuel 3 only heat available at 80 c or higher is included in chp energy efficiency calculation 4 cost includes materials and labor costs to produce stack plus any balance of plant necessary for stack operation cost defined at 50 000 unit year production 250 mw in 5 kw modules 5 based on operating cycle to be released in 2010 6 time until 20 net power degradation thermoelectrics edit thermoelectric generators operating on the seebeck effect show promise due to their total absence of moving parts efficiency however is the major concern as most thermoelectric devices fail to achieve 5 efficiency even with high temperature differences solar micro chp edit cpvt edit this can be achieved by photovoltaic thermal hybrid solar collector another option is concentrated photovoltaics and thermal cpvt also sometimes called combined heat and power solar chaps is a cogeneration technology used in concentrated photovoltaics that produce both electricity and heat in the same module the heat may be employed in district heating water heating and air conditioning desalination or process heat cpvt systems are currently in production in europe 27 with zenith solar developing cpvt systems with a claimed efficiency of 72 28 sopogy produces a micro concentrated solar power microcsp system based on parabolic trough which can be installed above building or homes the heat can be used for water heating or solar air conditioning a steam turbine can also be installed to produce electricity chp pv edit the recent development of small scale chp systems has provided the opportunity for in house power backup of residential scale photovoltaic pv arrays 29 the results of a recent study show that a pv chp hybrid system not only has the potential to radically reduce energy waste in the status quo electrical and heating systems but it also enables the share of solar pv to be expanded by about a factor of five 29 in some regions in order to reduce waste from excess heat an absorption chiller has been proposed to utilize the chp produced thermal energy for cooling of pv chp system 30 these trigen pv systems have the potential to save even more energy net metering edit to date micro chp systems achieve much of their savings and thus attractiveness to consumers by the value of electrical energy which is replaced by the autoproduced electricity a generate and resell or net metering model supports this as home generated power exceeding the instantaneous in home needs is sold back to the electrical utility this system is efficient because the energy used is distributed and used instantaneously over the electrical grid the main losses are in the transmission from the source to the consumer which will typically be less than the losses incurred by storing energy locally or generating power at less than the peak efficiency of the micro chp system so from a purely technical standpoint dynamic demand management and net metering are very efficient another advantage of net metering is that it is fairly easy to configure the user s electrical meter can easily record electrical energy exiting as well as entering the home or business for a grid with relatively few micro chp users no design changes to the electrical grid need be made additionally in the united states federal and now many state regulations require utility operators to compensate anyone adding power to the grid from the standpoint of the grid operator these points present operational and technical as well as administrative burdens as a consequence most grid operators compensate non utility power contributors at less than or equal to the rate they charge their customers while this compensation scheme may seem almost fair at first glance it only represents the consumer s cost savings of not purchasing utility power versus the true cost of generation and operation to the micro chp operator thus from the standpoint of micro chp operators net metering is not ideal while net metering is a very efficient mechanism for using excess energy generated by a micro chp system it does have disadvantages while the main generating source on the electrical grid is a large commercial generator net metering generators spill power to the smart grid in a haphazard and unpredictable fashion however the effect is negligible if there are only a small percentage of customers generating electricity and each of them generates a relatively small amount of electricity when turning on an oven or space heater about the same amount of electricity is drawn from the grid as a home generator puts out if the percentage of homes with generating systems becomes large then the effect on the grid may become significant coordination among the generating systems in homes and the rest of the grid may be necessary for reliable operation and to prevent damage to the grid market status edit japan edit the largest deployment of micro chp is in japan in 2009 with over 90 000 units in place 17 with the vast majority being of honda s 31 eco will type 32 six japanese energy companies launched the 300 w 1 kw pemfc sofc ene farm 33 34 product in 2009 with 3 000 installed units in 2008 a production target of 150 000 units for 2009 2010 and a target of 2 500 000 units in 2030 35 20 000 units were sold in 2012 overall within the ene farm project making an estimated total of 50 000 pemfc and up to 5 000 sofc installations 36 for 2013 a state subsidy for 50 000 units is in place 25 the ene farm project will pass 100 000 systems in 2014 34 213 pemfc and 2 224 sofc were installed in the period 2012 2014 30 000 units on lng and 6 000 on lpg 37 ecowill edit sold by various gas companies and as of 2013 installed in a total of 131 000 homes manufactured by honda using their single cylinder exlink engine capable of burning natural gas or propane each unit produces 1 kw of electricity and 2 8 kw of hot water 38 pemfc edit per december 2012 panasonic and tokyo gas co ltd sold about 21 000 pem ene farm units in japan for a price of 22 600 before installation 39 40 toshiba and osaka gas co ltd nichigas 41 installed 6 500 pem ene farm units manufactured by chofu seisakusho co ltd 42 per november 2011 43 sofc edit in the middle of 2012 jx nippon oil co sanyo and seibu gas energy co sold around 4 000 sofc ene farm units 44 aisin seiki in combination with osaka gas kyocera toyota and chofu seisakusho started in april 2012 with the sales of the sofc ene farm type s for around 33 500 before installation 45 ngk is a manufacturer of 700w 1 kw mchp units 46 miura kogyo 47 and sumitomo precision products with a 4 2 kw unit toto ltd 48 south korea edit in south korea subsidies will start at 80 percent of the cost of a domestic fuel cell 49 the renewable portfolio standard program with renewable energy certificates runs from 2012 to 2022 50 quota systems favor large vertically integrated generators and multinational electric utilities if only because certificates are generally denominated in units of one megawatt hour they are also more difficult to design and implement than a feed in tariff 51 around 350 residential mchp units were installed in 2012 52 pemfc by gs fuelcell 53 fuelcell power 54 hyundai hysco 55 jv with plug power and hyosung 56 sofc by kepri 57 ls industrial systems from clearedge power samsung everland clearedge power mcfc by posco energy fuelcell energy 58 and doosan pafc doosan fuel cell america afc afc energy europe edit the european public private partnership fuel cells and hydrogen joint undertaking seventh framework programme project ene field aims to deploy by 2017 59 up 1 000 residential fuel cell combined heat and power micro chp installations in 12 eu member states the programme brings together 9 mature european micro fc chp manufacturers into a common analysis framework to deliver trials across all of the available fuel cell chp technologies fuel cell micro chp trials wi...