Washington, D.C.
Several states, seeking to reduce power prices, improve the reliability of the power grid, and reduce air pollution, have developed policies to encourage combined heat and power (CHP). The American Council for an Energy-Efficient Economy released an updated review of these policies in a new report, “State Opportunities for Action: Update of States’ Combined Heat and Power Activities.” An update of a 2002 ACEEE study, this report highlights new state activities supporting CHP, including interconnection standards, emissions regulations, and financial incentives.
“In the past year, many states have picked up the CHP policy torch and run with it,” said Elizabeth Brown, co-author and ACEEE’s industry research assistant. “With rising concern over the availability and price of natural gas, CHP is an increasingly viable long-term power production option that is being considered at the state level. Soon-to-be-released analysis by the U.S. Combined Heat and Power Association indicates the CHP can reduce demand for natural gas through greater efficiency.”
States have the ability to tailor incentive programs to their specific needs, giving their programs a better chance of success. While not all programs will transfer across state boundaries, they provide useful examples from which other states can work.
“State Opportunities for Action: Update of States’ Combined Heat and Power State Activities” by Elizabeth Brown and R. Neal Elliott is available at https://www.aceee.org/pubs/ie032.htm.
