US president aims to add 40GW to 82GW of installed CHP capacity by 2020

See on Scoop.itGreen Energy Technologies & Development

Low gas prices, state incentives, environmental regulations and the retirement of old power plants helps fuel rising investment in combined heat and power (CHP) installations in the US, according to a Department of Energy (DOE) and Environmental Protection Agency (EPA) report.


Duane Tilden‘s insight:

Obama’s CHP initiative

The 40GW CHP expansion goal is based on a 2012 Executive Order from Obama which encourages the Departments of Energy, Commerce, and Agriculture, and the EPA […] to coordinate policies in order to encourage investment in industrial efficiency measures such as CHP.

The installation of a further 40MW of capacity would save about 1 quadrillion Btu of energy annually, eliminate over 150 million metric tons of CO2 emissions and save energy users some $10 billion a year.

Shale gas revolution helps spur CHP growth

Currently about 8 percent of US power generation capacity and 12 percent of MWh generated annually comes from CHP, according to the DOE report, while 87 percent of CHP installations support manufacturing plants.

The recent US shale gas revolution has helped spur renewed interest in the sector, after investment in new CHPs slowed down between 2004 and 2005, mainly due to volatile gas prices and an uncertain economic outlook.

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