According to a July 2013 research report by ACEEE, “Utilities and the CHP Value Proposition,” electric and natural gas utilities could reap substantial benefits by investing in and encouraging new combined heat and power (CHP) systems in their service territories. The major benefits that CHP offers to utilities include cost-effectiveness, quick deployment, avoidance of significant transmission and distribution (T&D) losses, and reduced strain on T&D systems. Policy and regulatory changes that would allow or encourage utilities to take advantage of these benefits include:
Establishing an energy efficiency resource standard (EERS) or other portfolio standard that prioritizes CHP as a critical resource;
Allowing utilities to earn cost recovery and economic returns on investments in CHP, as allowed for other generation resources;
Encouraging utilities to offer dedicated CHP programs within overall energy efficiency programming, and offering performance incentives for exceptional efficiency results;
Valuing the ancillary benefits CHP can provide within cost-benefit analyses used for energy efficiency programs and resource planning efforts.
Download the full report here.
ACEEE also produced two shorter white papers based on this report, “How Natural Gas Utilities Can Find Value in CHP,” and “How Electric Utilities Can Find Value in CHP.”