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Internal Financed CHP Project Example

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Internal Financed CHP Project Example

Project Example: The University of New Hampshire (UNH) Durham Campus self-financed their 12.5 MW CHP system for ~$28 million, which was installed in 2006. UNH also launched the EcoLine project in 2009 to provide landfill gas for the CHP system. The entire project had an estimated payback of ~10 years and allows UNH to sell renewable energy credits (RECs) from EcoLine’s generation to help finance the capital cost of the project.

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End-users can also choose to use existing internal financial resources to pay for CHP projects rather than seeking external financing. This is often the most simple and direct method for funding projects and allows the organization to capture the full financial benefits of energy projects rather than paying a portion to a financing provider. Methods for internal funding include operating or capital budget expenditures, self-funded energy savings performance contracts (ESPCs), capital investment funds or internal revolving loan funds, For many institutional organizations such as colleges & universities and city or state governments, internal funds often represent the lowest “cost of money” for funding CHP projects.