Combined Heat and Power
Energy Savings & Energy Security
for Resort Hotels and Casinos
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Combined heat and power (CHP), also known as
cogeneration, can be an excellent solution for
controlling energy costs while improving the
reliability of power supply for your resort hotel or
casino. CHP can:
• Reduce operating costs and control rising
energy costs.
• Ensure the availability of reliable electricity
supply for guest comfort, security, and business
continuity.
• Increase energy efficiency and improve
environmental performance.
What Is CHP?
CHP is the production of both power and heat
from a single fuel source. By using the waste heat
from onsite electricity production for heating or
cooling, CHP increases fuel efficiency and decreases
energy costs.
For hotel and casino resorts with more than 500
rooms, CHP system sizes typically range from
1 megawatt (MW) to 10 MW, depending on the size
and energy requirements of the facility.
For information on CHP systems for smaller hotels, see the EPA CHP Partnership's companion fact sheet,
CHP for Mid-Size to Large Hotels, available at www.epa.gov/chp/pdf/chp_hotelfs_web.pdf.
CHP
&EPA COMBINED HEAT AND
POWER PARTNERSHIP
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What Can CHP Do for You?
Ensure the Reliability of Electricity Supply
CHP provides a reliable source of energy to keep
resort hotel and casino guests comfortable and safe
by producing simultaneous power and heat 24 hours
a day, seven days a week. Given that power outages
can cost casinos more than $1 million a day in lost
revenue, the potential reliability benefits of CHP are
significant. CHP integrates seamlessly into existing
heating and electrical systems, providing a steady
supply of hot or chilled water, and it can be designed
to continue to operate and provide power in the
event of a utility outage.
In addition, CHP systems provide high-quality
power that can stabilize voltage and current sags,
spikes, transients, and phase voltage imbalances.
Insuring against these types of power quality
problems can be particularly beneficial for
computers, electronics, and security equipment
at a casino.
Reduce Energy Costs
CHP offers a solution to control spiraling energy
costs and can be a central component of a fuel-
hedging strategy for large resorts and casinos.
The hospitality industry spends nearly $4 billion
per year on energy. Fuel prices are at a record high,
and increasing energy costs are a major concern
for resort hotels and casinos, particularly as demand
for more hotel amenities, such as restaurants,
lounges, retail shops, and recreational facilities, has
increased electricity and natural gas consumption
industry-wide.
A market analysis1 of hotels and casinos developed
by EPA's CHP Partnership shows that there are more
than 500 large hotels and casinos in the United
States that have energy characteristics suitable for
current CHP technology. More than 170 of these
sites are likely to meet a simple payback on their
investment within five years or less.
Increase Energy Efficiency and Improve
Environmental Performance
CHP reduces operating costs while improving
environmental performance. The power and heat
produced on site by a CHP system offsets purchases
of electricity and fuel for boilers. The same
reductions in purchased electricity that provide
energy cost savings also reduce the environmental
impact of hotel and casino operations by reducing air
pollution. CHP is a sound practice for energy
efficiency in hotels and casinos, and it will reduce
the property's environmental impact through
reduced fuel consumption.
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CHP in Use at U.S. Resort Hotels and Casinos
At least 16 resort hotels and casinos with more than 500 rooms in the United States currently have CHP
systems, and an increasing number of hotels and casinos are choosing CHP systems to meet their energy
needs. Of the existing CHP systems in the hotel sector, the majority are reciprocating engine systems
operating on natural gas. Many of these systems were installed during the late 1980s and are continuing to
operate reliably and efficiently today. In recent years, the mix of technologies used for CHP has broadened to
include microturbine, fuel cell, and gas turbine installations.
Harrah's Rio All Suite Hotel and Casino, Las
Vegas, Nevada
The Rio All Suite Hotel and Casino is a large
casino resort located in Las Vegas. The hotel
includes 2,800 suites, 15 restaurants, theaters and
lounges, gaming rooms, and other facilities.
The Rio's CHP system is the first CHP system at a
Las Vegas casino. It was installed in 2004 to
reduce the Rio's $9 million annual energy bill. The
CHP system consists of six natural gas-fired
reciprocating engines with a total capacity of
4.9 MW. The system started operation on May 1,
2004, and generates 40 percent of the electricity,
60 percent of the hot water, and 65 percent of the
heating requirements of the resort. By generating
power and thermal energy more efficiently than the
hotel can purchase from the local utility, the Rio
saves $1.5 million annually. The unit has been
available and operating more than 95 percent of
the time.
Seneca Niagara Falls Casino, New York
Having experienced the 2003 Northeast blackout,
the Seneca Niagara Falls Casino, operated by the
Seneca Gaming Corporation in Niagara Falls, New
York, installed and began operating a new CHP
system in December 2005. The system was
designed to operate in the event of a utility outage,
providing back-up power to allow the Seneca
Casino to remain operational in the event of a
catastrophic failure of the electric grid. The CHP
plant utilizes three 2 MW natural gas-fueled
reciprocating engine/generator sets to generate
approximately 6 MW of power. During peak load,
the CHP system meets approximately 73 percent
of the casino's electricity needs.
The CHP system was sized to meet the thermal load
of the facility, providing space heating and cooling,
as well as domestic hot water for the casino. During
the summer months, the system is expected to meet
100 percent of the casino's thermal needs and is
expected to pay for itself within four years.
Options for CHP in Resort Hotels
and Casinos
CHP technologies are flexible, providing a wide range
of sizing options. The right CHP system for your hotel
or casino will be determined through consultations
and analysis that will include a site-specific evaluation
of your facility's electricity and thermal loads.
CHP is typically sized to match the thermal demand
of the hotel or casino and usually provides 50 to 70
percent of a facility's electricity needs. This approach
to CHP system design—known as thermal base-
loading—maximizes both the efficiency and the
return on investment for CHP. Space cooling
represents the main thermal load met by a CHP
system at a large hotel or casino. Space heating, water
heating, laundry, restaurant, and pool heating loads
can also be met by an appropriately sized CHP system.
During the design phase of a new construction project
or when adding or replacing boilers or chillers, resort
hotels and casinos might want to consider installing
CHP instead of new boilers or chillers to help offset
capital equipment costs.
Resort hotels and casinos with more than 500 rooms
can generally use 1 to 10 MW CHP systems with
industrial gas turbines or large reciprocating engines
to produce power for the facility's baseload needs, and
the high temperature exhaust can be converted to
steam in heat recovery steam generators to provide
both air conditioning and heating.
Various types of maintenance and service contracts
are available for CHP systems, including
comprehensive maintenance, service, and operations.
Alternately, existing staff can be trained to perform
maintenance for the system.
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What Resources Are Available?
Technical Assistance
The CHP Partnership has developed services and
tools to assist those considering CHP for their
facilities. Visit the Streamlining Project
Development pages of our Web site at
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