|
 Executive Summary
Combined Heat and Power (CHP) systems date back to the 1800s, when waste heat from power plants was recycled to provide residential heating. New York City still uses CHP to heat thousands of Manhattan apartments. As the power industry matured, plants moved outside of residential areas, due to cost and pollution concerns, meaning that this formerly useful waste heat was now emitted into the environment. The most efficient conventional power plants reach efficiencies of only 40%, emitting the other 60-70% as waste heat. CHP plants recycle this previously wasted resource, using it to provide heating and/or generate more electricity, reaching efficiencies of 90% or more.
CHP is not a single technology, but rather a group of technologies working together to provide both energy and heating from a single power source. The prime mover - the system that generates electricity - varies depending on the size of the plant and the fuel source, which could be natural gas, coal, or oil. Two additional fuel sources have shown the potential to reduce emissions even further: Biomass and fuel cells. Micro-CHP units, which produce heat and power for individual homes or businesses, have been introduced within the last few years. While still almost double the price of a conventional boiler, long-term savings and tax incentives are making them more financially attractive.
Current US CHP capacity of 12% is a bit higher than global CHP capacity, which is currently at 9%. Regulatory initiatives such as FiTs, ITCs and improved interconnection standards encouraged the development of CHP in countries such as Denmark, Russia and the Netherlands, which have reached capacities between 30-50%. The US is seeking to grow its CHP capacity to 20% by 2030. CHP represents a cost-effective option for significantly reducing emissions and waste while increasing efficiency.
|
