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Governor Larry Hogan Unveils New Peninsula Regional Medical Center Combined Heat and Power System

Today, Governor Larry Hogan unveiled the new Combined Heat and Power (CHP) system for Peninsula Regional Medical Center (PRMC) in Salisbury, MD. PRMC received a $494,320.00 CHP grant from the Maryland Energy Administration to renovate their existing heating system.

from left, Director Tung, Governor Hogan and Dr. Naleppa.

Here Governor Larry Hogan, Maryland Energy Administration Director, Mary Beth Tung and PRMC President/CEO Dr. Peggy Naleppa prepare to turn on the new system. See the video below:


“Peninsula Regional Medical Center is the largest and most experienced healthcare provider in this region, and now, PRMC has made a significant investment in the future with this combined heat and power system,” said Governor Hogan. “Today, we are ‘flipping the switch’ on a program that reduces operating costs, and guarantees electricity is ready and available when needed, something that is critical for PRMC’s 3,300 physicians, staff, and volunteers, and for the nearly 500,000 patients who are served here.”

“CHP systems make sense, both from a fiscal and an environmental perspective, given that this approach captures wasted energy and redirects the heat for maximized efficiency,” said Director Tung.

CHP systems, generate electricity and useful thermal energy in a single, integrated system. CHP options combine technologies to maximize efficiency and reduce waste. Traditional separate heating and power systems may yield a combined efficiency of 45%, however, a CHP system can operate at levels as high as 80% efficiency. PRMC’s new system is composed of natural gas fired reciprocating internal combustion engines, and recovered waste heat will be used to provide space heating and domestic hot water.

“Stewardship is one of Peninsula Regional’s core values. By installing the CHP, we achieve both environmental and economic stewardship that is a benefit to our community,” said Dr. Naleppa. “It also makes PRMC more resilient; in the event of a power grid failure or natural disaster, we have a built-in backup that will allow us to continue to care for our community.”

  1. Electricity offset: 81% of annual consumption
  2. Thermal offset: 92% annual gas consumption net of boiler efficiency (Note: Boilers estimated to have 85% efficiency
  3. System capacity covers ~95% of average annual demand load
  4. Carbon reduction: Annual CO2 reduction of >50%; annual NOx reduction of about 15%; total greenhouse gas reductions of and ;50% annually

PRMC is Maryland’s Eastern Shore’s largest, most advanced tertiary care facility, with 3,300 physicians, staff and volunteers that provide care to nearly 500,000 patients.

from left: Chief of Staff Greg Williams, Director of Government Affairs & Communications John Fiastro, Governor Larry Hogan, PRMC CEO/President Naleppa, Director Tung, CHP Program Manager Rory Spangler and Director of Programs Chris Rice

The MEA team stands proudly with Governor Hogan and PRMC’s CEO / President, Dr. Naleppa at the site of the new system. Our new CHP  grant program is now open and we encourage all Maryland businesses to consider investing in sustainable, energy efficient measures like CHP. To get more information on the CHP grant click here.