The US University of Maryland’s Upper Chesapeake Health facility has installed a new combined heat and power system after becoming the first recipient of a grant programme from local utility company Baltimore Gas and Electric (BGE).

Under BGE’s Smart Energy Savers Program the health centre received US$1.5 million in incentives from the installation of a CHP system (pictured) that will generate approximately 13 GWh annually.

Located on site at the medical campus in Bel Air, Maryland, it is expected to save Upper Chesapeake Health US$9 million over 20 years of operation.

Commenting on the incentive scheme, Calvin G. Butler Jr., chief executive officer, BGE, said: ‘Through this suite of energy efficiency programme offerings, we are able to help customers attain the energy efficiency milestones that will help them reduce energy use, save money and make a positive impact on the environment, while also improving the quality of life for their employees and patients now and for many years to come.’

The BGE Smart Energy Savers Program provides incentives of up to $2 million to industrial and commercial customers which install an on-site CHP system.

Eligible CHP projects may be driven by either a reciprocating engine or a gas turbine and must operate at a minimum of 65% efficiency. Projects must be pre-approved by the end of 2014 and must be commissioned and operational by the end of 2016.

All qualified projects are eligible to receive a design incentive of $75/kW, an installation incentive of $175/kW and a production incentive of $0.07/kWh for 18 months.

The scheme supports the EmPOWER Maryland Energy Efficiency Act.