Cogeneration for hotels and shopping centres: case studies and calculations

Hotels and shopping centres are facilities with consistently high energy consumption, where electricity, heating and cooling are required every day without interruption. In such conditions, cogeneration becomes the standard model for energy supply. 

The power cuts of 2022–2025 showed that even a few hours without electricity can result in the loss of tenants, spoilage of goods and reputational risks. 

This article features real-life case studies from Pro-Energy, the potential of cogeneration for small and medium-sized businesses, cost-benefit analyses and typical configurations for hotels and shopping centres, which demonstrate the practical effectiveness of cogeneration solutions. 

Why hotels and shopping centres are ideal for cogeneration

Hotel guest profile

The hotel is open 24/7 and enjoys a steady flow of guests with no seasonal lulls:

• Electrical systems: lighting, lifts, kitchen, laundry room, ventilation.
• Heating: central heating, hot water, spa, swimming pools.
• Cooling: air conditioning (especially in summer).

Shopping Centre Consumer Profile

Shopping centres have a different structure, but one that is no less favourable for cogeneration:

• electrical systems: lighting, escalators, ventilation, refrigerated areas;
• heating: heating in winter;
• cooling: air conditioning in summer.

Operating hours — 10–14 hours a day, with peak loads at weekends. This creates ideal conditions for the CHP plant to operate at high efficiency and enables it to effectively take account of current trends in the development of cogeneration in Ukraine in 2026. 

Common features of the properties

• a high baseline consumption level 24/7 or for 10–14 hours a day;
• full utilisation of heat throughout the year;
• critical reliance on an uninterrupted power supply;
• large areas = high potential for savings.

That is precisely why cogeneration for shopping centres and hotels offers the quickest payback period among commercial properties.

Case Study 1: Shopping Centre, Ivano-Frankivsk Region — AVUS 1000 Plus (1 MW)

Initial data

A shopping centre in the Ivano-Frankivsk region faced a problem typical of large-scale facilities: high electricity costs and complete dependence on the grid during power cuts. In addition, there was a need to integrate with an existing solar power plant.

Object parameters:

• type: shopping and leisure centre;
• requirement: a stable electricity supply + heat recovery;
• additionally: integration with solar power generation.

Decision

Pro-Energy has implemented a system based on the AVUS 1000 Plus (1 MW):

• electric power: 1 MW;
• fuel: natural gas;
• trigeneration: electricity + heat + cooling;
• integration with the power system for hybrid generation.

Results

• energy savings: up to 50–60%;
• reduction in heating costs: up to 30%;
• the ability of critical systems to continue operating in the event of an external power cut;
• project payback period: ~3.2–3.8 years.

The shopping centre is now able to remain open even during power cuts without its tenants having to suspend their operations.

Case Study 2: Shopping Centre, Lviv — AVUS 1000 Plus (2G)

Initial data

The facility already had a 2G cogeneration unit in place, but required:

• quick installation;
• integration into the existing infrastructure;
• launch without interrupting the shopping centre’s operations.

The key requirement is to ensure that tenants do not experience any downtime.

Decision

Pro-Energy has successfully commissioned the AVUS 1000 Plus (1 MW) unit:

• installation in an existing shopping centre without interrupting business operations;
• connection to the electricity grid;
• configuring parallel operation with the network;
• launch within a short timeframe (1 month).

Results

• a steady output of 1,000 kW of electricity;
• thermal capacity of up to 1,045 kW;
• system efficiency: up to 89.4%;
• full integration with the hybrid model of SES + CHP;
• a reduction in energy consumption of up to 40–55 per cent.

This case study demonstrates that even off-the-shelf equipment requires proper integration, which is particularly critical in challenging market conditions and when addressing the challenges of cogeneration in Ukraine. 

Typical configurations for different facilities

Typical configurations for combined heat and power (CHP) plants depend directly on the scale of the facility, its energy consumption profile and the presence of heating and cooling loads. Below are some practical solutions most commonly used for hotels, shopping and leisure centres. Provided there is a stable load, full heat recovery and the correct capacity selection, such projects enable a payback period of 3–5 years, making cogeneration one of the most efficient solutions for commercial property. 

A hotel with 50–100 rooms

• CHP power: 100–200 kW;
• heating: central heating + domestic hot water;
• payback period: 3–4 years;
• solution: basic cogeneration.

A hotel with 100–200 rooms (spa, swimming pool)

• power: 200–400 kW;
• heating: central heating + swimming pool + spa;
• cooling: trigeneration;
• Payback period: 3–4 years.

Shopping centre: 10,000–25,000 m²

• power: 400–800 kW;
• schedule: 10–14 hours per day;
• option: standalone mode;
• payback period: 3–4 years.

Shopping centre: 25,000–50,000 m²

• power: 800–1,500 kW;
• CHP cascade circuit;
• the possibility of transmitting or selling surplus electricity, provided the relevant technical and regulatory conditions are in place;
• payback period: 3–5 years.

The Economics of Cogeneration

The economic efficiency of cogeneration is based on the principle of dual fuel utilisation — the simultaneous production of electricity and heat — which makes it possible to significantly reduce overall energy costs and improve the stability of the energy supply.

The structure of savings

• electricity: savings of 50–70%;
• heating: savings of 20–35%;
• losses due to power cuts: falling sharply.

Before and after the introduction of the CHP

Factors contributing to a quick return on investment

• electricity tariff >7 UAH/kWh;
• operating time >5,000 hours per year;
• full utilisation of heat;
• trigeneration.

Before / After CHP 

• electricity 100% → 30–50%
• heating 100% → 40–60%
• autonomy 0 → 24/7

Trigeneration: cold from heat

Trigeneration is a logical extension of cogeneration, whereby the production of cooling is added to the standard generation of electricity and heat. In practice, this means that the heat generated by the plant is not only used for heating or hot water supply, but is also converted into cooling using an absorption chiller.

For hotels and shopping centres, this is a crucial tool for improving energy efficiency, as a significant proportion of their annual energy consumption is accounted for by air conditioning and cooling during the summer months.

When is this required?

• a heavy load on the air-conditioning system during the summer months;
• insufficient or uneven utilisation of heat from cogeneration;
• properties with a large floor area (over 15,000 m²);
• hotels with spa facilities, swimming pools and constant climate control;
• a shopping centre with high internal heat generation from equipment and visitors.

Investments

Implementing trigeneration for a hotel or shopping centre requires additional investment in an absorption chiller, which is integrated into the existing cogeneration system.

• additional investment: +20–30% of the cost of the CHP;
• payback period for a trigeneration solution: 4–5 years;
• an additional benefit: a reduction in air-conditioning costs of up to 40% during the peak summer months.

Island mode: energy self-sufficiency

Why is this critical?

Island mode operation of a combined heat and power (CHP) plant enables a facility to be completely disconnected from the external electricity grid and to continue operating reliably during emergencies or power cuts. For commercial property, this is not merely a technical feature but a key factor in ensuring business continuity and safeguarding revenue.

Hotels:

A power cut has a direct impact on day-to-day operations: it can lead to services being suspended, problems with guest check-in, and disruptions to the kitchen and spa facilities. In extreme cases, this results in the forced evacuation of guests and significant damage to the hotel’s reputation.

Shopping centre:

For shopping centres, a power cut means an immediate halt to tenants’ operations, a loss of sales, disruption to logistics within the centre, and the risk of goods spoiling, particularly in shops with refrigeration equipment.

What does CHP provide?

In stand-alone mode, the combined heat and power plant maintains the operation of the facility’s key systems:

• lighting and emergency systems;
• lifts and escalators;
• refrigeration and retail equipment;
• security and CCTV systems.

This enables basic operational stability to be maintained even during a complete loss of external network connectivity.

Switching to island mode

The switch to autonomous operation takes place entirely automatically, without any staff intervention:

• switchover time: 10–30 seconds;
• automatic activation of backup mode;
• uninterrupted operation of critical systems without downtime.

This mechanism provides businesses with genuine energy independence and minimises the risk of downtime.

Stages of project implementation

Implementing a cogeneration project is a complex process that covers all stages, from analysing energy consumption to the full commissioning of the system. Each stage is critical to achieving the projected savings, ensuring the stable operation of the equipment and meeting the technical requirements of the facility.

• energy audit — an analysis of actual electricity and heat consumption and the creation of a load profile for the facility;
• power selection — determining the optimal configuration of the power generation unit, taking into account peak and base loads;
• FEAS (Feasibility Study) — a calculation of the investment, payback period and economic benefits of a project;
• design — the development of engineering solutions, wiring diagrams and heat recovery systems;
• approval — compliance with the technical requirements of network operators, gas utilities and regulatory authorities;
• installation (2–4 weeks) — supply of equipment, construction and installation works, and integration into the site’s infrastructure;
• commissioning works (1–2 weeks) — system testing, configuration of operating modes and achieving design specifications;
• putting into operation — the final start-up, handover to commercial operation and the arrangement of maintenance support.

Common mistakes

In cogeneration projects, errors made during the planning and implementation stages have a direct impact on the system’s economics, efficiency and operational stability. Most often, these errors are linked to incorrect capacity selection, a failure to take thermal loads into account, or a lack of process automation.

• over-rated capacity → the unit operates inefficiently under light load, resulting in a loss of efficiency;
• under-rated capacity → the system cannot meet the facility’s peak demand, resulting in an energy shortfall;
• failure to take heat into account → up to 40–50% of potential savings are lost due to a lack of full utilisation;
• no island mode → the facility remains dependent on the external grid during power cuts;
• manual control instead of automatic control → reduced system efficiency and unstable generation modes.

Things to bear in mind

Hotels and shopping centres are facilities where cogeneration demonstrates maximum efficiency thanks to their stable load, high energy consumption and critical need for an uninterrupted power supply. In such circumstances, investment in cogeneration units is not an expense but a means of achieving long-term energy and financial stability.

Pro-Energy’s real-life case studies show that:

• energy savings: 40–60%;
• payback period: 3–4 years;
• the facility’s complete or partial energy self-sufficiency;
• high operational readiness during blackouts and emergency power cuts.

To assess the potential of cogeneration specifically for your hotel or shopping centre, it is necessary to analyse the facility’s consumption profile and heat loads. Based on this data, it is possible to calculate the optimal capacity, projected savings and the project’s payback period.

Submit a request for a consultation with Pro-Energy’s experts and receive a bespoke energy efficiency assessment for your property.