Installing a combined heat and
power solution can greatly impact
your facility’s energy efficiency,
According to the American Council for
an Energy-Efficient Economy (ACEEE),
states contribute a sizable piece of the
puzzle when it comes to CHP favorability
in different regions.
The organization recently developed
the CHP Favorability Index, a comparison
of their annual State Energy Efficiency
Scorecard alongside the number of actual
new CHP installations in each state.
States are ranked on two measures –
market favorability, which considers the
CHP potential in each state (using data
Is Your State CHP-Friendly?
effectiveness using local electricity and
gas prices, and policy favorability, which
examines the existing policy environment.
The end result is an easily understandable
measure of an FM’s likely ability to build a
business case for CHP in any given state.
“Seven of the Midwest states show an
extremely high level of market favorability
for CHP deployment, coupled with only
moderate to low levels of policy activity,”
the index authors write. “Future state
policy and regulatory action is likely to
have the greatest impact in states such as
Wisconsin, Illinois, and Ohio, where the
market favorability index is high and the
groundwork for policy measures are in
place. In a state such as Nebraska, which
has favorable economics, policies like
those in Michigan or Wisconsin could
result in greater deployment.”
Findings like these indicate the need for
state policy to catch up, especially in areas
where the economics already support CHP
deployment, the authors add.
To see how your state fares, visit www.
LOCAL ENERGY PRICES play a role in successful deployments of combined heat and
power systems, but state policy also makes