High Efficiency Combined Heat and Power Facilities - Benefits and Barriers

Abstract

There are important linkages between the economy, energy production, the environment and our health. Where thermal energy is needed, distributed Combined Heat and Power facilities, using gas turbines, reciprocating engines and future fuel cells can provide significant improvements to our long term mix of energy production. Local generation can also have benefits in security of energy supply and economic savings. This paper is intended to discuss the relevant air pollution and greenhouse gas emissions from modem CHP plants, the emission prevention and reduction methods available, and their operating experience and cost-effectiveness. Mention is made of recently constructed industrial and commercial plants, and institutional barriers to further development. Solutions described for these barriers include the need for more awareness of opportunities, improved access to the electricity grid, the proper design balance between thermal and electric for CHP systems rather than large combined cycles, improved corporate taxation incentives, and the assessment of all environmental and economic benefits when considering such cleaner sources in a restructured energy market.