A new report from the US has found that mandating procurement of CHP is the most politically acceptable option for promoting energy efficiency in the industrial sector.
The ‘Making Industry Part of the Climate Solution’ report was conducted by the US Department of Energy’s Oak Ridge National Laboratory and the Georgia Institute of Technology and reviewed seven federal policy options for boosting energy conservation.
The report looked at the potential creation of a federal “Energy Portfolio Standard” (EPS) that mandates electric distributors to procure a certain amount of CHP.
The EPS strategy would also expand the current investment tax credit to 30% of the total CHP system cost.
The report says this would see industrial CHP capacity more than triple from 28 GW in 2010 to 90 GW in 2035, while total electricity generation from CHP facilities would grow nearly twice as rapidly over the next 20 years.
According to the report, CHP in the chemicals and pulp and paper industries currently generate approximately 50 billion kWh of electricity, but it would rise to nearly 200 billion kWh by 2035 under a CHP standard.
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