Texas is to cut red tape for combined heat and power systems. The Texas Commission on Environmental Quality has approved a new permit for CHP that is expected to reduce regulatory delays and eliminate some equipment cost associated with CHP systems.

A report prepared by the Public Utility Commission of Texas has identified that more than 7,000MW of potential CHP can be economically developed in this size range over the next ten years at commercial and industrial sites such as hospitals, data centres, nursing homes, hotels, chemical manufacturers, paper manufacturers and oil refineries.

With a total capacity of about 17,000 MW, Texas has the largest fleet of CHP and cogeneration facilities of any state in the nation consistently generating approximately about 20% of the electricity in the state. This is roughly four times the amount of energy produced in Texas by wind power. CHP systems are readily available and most all component parts are manufactured and engineered in Texas and the US.

Paul Cauduro, Executive Director for the TXCHPI stated: “The new air permit for CHP is a positive step for those that want to reduce energy costs and generate their own reliable and secure power using natural gas engines and turbines. This comes at a time when Texas needs CHP now more than ever because these systems reduce strain on the ERCOT grid and provide reductions in power plant air emissions and water use. The new permit should help usher in more of this effective, economical and environmentally sensible energy option for Texas; and create plenty of jobs along the way. This will be the topic of much discussion at CHP2012.”

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