On-site energy production, such as microgrids, cogeneration, fuel cells and solar and wind power, has tremendous potential to increase infrastructure and real estate cash flow by reducing energy bills, commanding higher rents and lowering operating expenses. It is a useful tool, among many, to migrate core investments to value-added and generate higher financial returns without increasing risk. For these and other reasons, it has become an increasingly relevant topic for infrastructure and real estate owners and investors concerned with operating efficiency, energy security and environmental sustainability. Tenant demand for reliable power sources, volatility in utility electricity cost and focus on green building further contribute to the elevated discussion.  Though on-site energy production can take several forms, this article focuses primarily on combined heat and power (CHP), also known as cogeneration.

What is CHP?

CHP is an on-site energy syste