The Texas Legislature (pictured) in the US recently passed House Bill 2049, which removes regulatory barriers and improves the business climate for cogeneration facilities by clarifying language in the Texas Utility Code.

The change now enables CHP facilities to sell electricity and heat to the same customer within the proximity of the facility, thereby maximising efficiency and minimising financial risk.

Prior to the change, cogeneration facilities could sell electricity to only one customer.

“Texas legislators understand the need to remove regulatory barriers, and HB 2049 is one example that will help usher in new cogeneration project opportunities”, says Paul Cauduro, executive director of the Texas Combined Heat and Power Initiative.

Research has determined that by raising CHP from 20 to 35 per cent of total electricity generation, Texas could add 14,000 MW to the state’s grid by 2025.

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