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CHP now provides about 12% of U.S. energy capacity, or in other words, 82 gigawatts, according to the U.S. Clean Heat & Power Association (USCHPA). The executive order also announced a national CHP deployment goal of an additional 40 gigawatts by 2020.
Coincidentally, Smart Grid News had reported on the status of CHP and its resurgence Wednesday. The story noted that the technology – which involves using waste heat, a byproduct of generating electricity, for heating and cooling – has become increasingly popular across a variety of manufacturing and other industries and businesses as a way to keep energy costs down and maintain competitiveness.
The USCHPA, in response to the order, said accelerated investments in improving U.S. manufacturing competitiveness could save as much as $100 billion in energy costs over the next decade. Jessica Bridges, the organization's executive director, said "CHP technology can be deployed quickly, cost effectively and with few geographic restrictions. Establishing this national goal toward greater CHP deployment will significantly advance cleaner energy generation in the U.S., benefit the environment and help create much needed manufacturing and industrial jobs."
The industry wasn't the only group applauding the executive order. The Pew Clean Energy Program also had good things to say as did the United Steelworkers. "We applaud the administration's goal of increasing electricity generation by 40 gigawatts through energy efficiency technologies, such as combined heat and power and waste heat recovery, and encouraging federal and state partnerships to identify best practices," said Phyllis Cuttino, director of the Pew Clean Energy Program."
How is the executive order going to be carried out? Energy, Commerce and Agriculture departments and the EPA along with the National Economic Council and the Council on Environmental Quality and others will coordinate policies to encourage industrial efficiency investments. As the White House order announcement says "In doing so, they (those agencies and councils listed) shall engage states, industrial companies, utility companies, and other stakeholders to accelerate this investment."
Among the specifics are public workshops with stakeholders to develop best practice state policies and investment models that address the numerous barriers to investment in industrial efficiency and CHP, incentives for the deployment of CHP and other clean energy technologies, "...such as set asides under emissions allowance trading program state implementation plans, grants and loans," setting up compliance options in power and industrial sector regulations, and encouraging more participation in DOE's Better Buildings/Better Plants program.
The agencies also are to provide guidance, technical assistance and information, financial analysis on the value of investment in industrial efficiency and CHP to states, utilities and owners and operators of industrial facilities.
A number of readers who commented on our CHP report earlier this week observed that utilities have typically been opposed to the technology. We can't make solid predictions at this point, but we're going to suggest that those utilities may want to get ready for what could be a new playing field.
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