CCHP - a technique that uses the exhaust heat from distributed generation prime movers to run an absorption chiller, a steam turbine chiller, or a desiccant dehumidifier - has the potential to greatly advance distributed generation worldwide, says the report. And distributed generation may help several heat-driven cooling technologies advance in the HVAC market as well. For utilities and end users, CCHP systems offer the potential to reduce electricity demand during demand and price peaks.

The idea is not a new one; there are a number of such systems installed, primarily at large industrial and institutional facilities, the report notes. Other projects have been set up at smaller commercial sites and have yielded promising results and positive feedback from participants. But these systems, by and large, have been custom-designed and custom-engineered for each particular site, typically at high cost and effort. To gain a significant market in the small commercial, large commercial, and small-to-midsize industrial sectors, distributed generation systems and chillers will need to be integrated into a pre-engineered system in the factory using standard, modular equipment that is designed to work together optimally, states the report. A few companies - such as UTC Power and Toyota - have just recently begun selling integrated systems commercially.