Guide to the Successful Implementation of State Combined Heat and Power Policies

March 15, 2013

The Guide to Successful Implementation of State Combined Heat and Power Policies informs state utility regulators and other state policymakers with actionable information to assist them in implementing key state policies that impact combined heat and power (CHP).

It discusses five policy categories and highlights successful state CHP implementation approaches within each category:

  • Design of standby rates
  • Interconnection standards for CHP with no electricity export
  • Excess power sales
  • Clean energy portfolio standards (CEPS)
  • Emerging market opportunities—CHP in critical infrastructure and utility participation in CHP markets.

CHP can provide significant energy efficiency and environmental advantages over separate heat and power. By being more efficient, less fuel is consumed and greenhouse gases (GHGs) and other emissions are reduced. Properly designed CHP can bolster the grid, provide security benefits, and potentially support intermittent renewable energy sources.

  • The challenge for all affected parties using combined heat and power (CHP)—which can provide significant energy, energy system, and environmental benefits— is to identify the most equitable arrangement that encourages adoption of CHP while ensuring that inequitable costs are not transferred to those not participating in CHP. This document clearly and accurately describes the policy issues all parties must address when evaluating CHP.

    Joshua Epel, Colorado Public Utilities Commission
  • This document was extremely insightful during our recent energy efficiency filing process, helping us bring to light the often overlooked 'other program impacts' that can undervalue cost screening tests. Because SEE Action's diverse group of stakeholders explored many of the issues presented in the guide, it became a valuable resource that helped us gain a better understanding of the issues and barriers for implementing CHP, as well as potential solutions.

    Anne-Marie Peracchio, New Jersey Natural Gas
  • This document substantially improved our understanding and awareness of CHP progress and best practices from other regions of the country. It has been used within Washington State and our energy program to refine and improve our support to both utilities and project developers. 

    Todd Currier, Washington State University Extension Energy Office