What is the typical financial payback for cogeneration projects?
The return on investment of viable cogeneration units will most likely be five to ten years. The economics of cogeneration are largely driven by the relative advantage of generating electricity and the useful source of heat rather than depending on electricity from the grid. Cogeneration is directly related to, and highly dependent on, the fuel and electricity tariffs which are applicable to the site. In reality, you should not pre-empt likely paybacks without doing a pre-feasibility assessment which includes a dynamic energy balance and reasonable estimates for determination of costs; for example, electrical connection issues and costs, waste heat boilers and auxiliary equipment and site integration issues (control and monitoring costs).
