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  • Vi Rapp

New Publication: Opportunities for installed combined heat and power to increase grid flexibility

Congratulations to the team for our recent publication in Energy Policy on leveraging existing combined heat and power (CHP) capacity to increase grid flexibility. A brief summary of the article and the link to the full article are below.

In this paper, we used CHP operating data and determined annual and monthly availability of the installed CHP capacity from various sectors (e.g., utility, independent power producer, commercial, and industrial) in all seven U.S. independent system operators (ISOs) and regional transmission organizations (RTOs). Also, we estimated hourly CHP availability installed in five facility types (i.e., hospitals, universities, hotels, offices, and manufacturing) in the state of New York. The results show that regardless of ISO/RTO, sector, or season, more than 40% of the installed CHP capacity (0.7–8.7 GW) was not fully utilized in 2019; the results are similar for 2018. This available CHP capacity accounted for up to 9% of the ISO/RTO's peak electric demand, which may yield cost savings up to $16 billion by avoiding installation costs of new natural gas combustion or combined-cycle turbines. To exploit the available CHP capacity to enhance grid flexibility, we recommend different policy implications including flexible contract lengths between CHP owners and grid operators, improved market designs, and simplified interconnection standards.

Click here for the full article.

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