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Compared to average fossil-based electric-supply generation, the existing base of CHP results in: 2006 Existing CHP - 9% of U.S. Capacity 85 GW Reduced Annual Energy Consumption With CHP 1.9 Quads Total Annual CO2 Reduction 248 MMT Carbon Saved 68 MMT Number of Car Equivalents Taken Off Road 45 million Based on comparing the annual fuel use and CO2 emissions of existing CHP with separate heat and power comprised of on-site thermal energy supplied by the same fuel type and average fossil based electricity generation for 2006 (AEO 2008) with 7% T&D losses. Source: Based on Annual Energy Outlook 2008 (AEO 2008), U.S. Energy Information Administration and eGRID, EPA. If in the future, the United States received 20 percent of its electricity capacity from CHP, this would be equivalent to removing more than 154 million cars (or more than half of the US vehicle fleet) from the road. Achieving that environmental impact would be a huge accomplishment, and few other technologies or practices can be implemented as economically or quickly as CHP. 2030 CHP – 20% of U.S. Capacity 240.9 GW Reduced Annual Energy Consumption With CHP 5.3 Quads Total Annual CO2 Reduction 848 MMT Carbon Saved 231 MMT Number of Car Equivalents Taken Off Road 154 million Based on extrapolating existing CHP performance by fuel type to proposed 2030 capacity and comparing with separate heat and power comprised of on-site thermal energy supplied by the same fuel type and average fossil based electricity generation for 2030 (AEO 2008) with 7 % T&D losses. 17 McKinsey and Company. 2007. Reducing U.S. Greenhouse Gas Emissions: How Much at What Cost? Source: Based on Annual Energy Outlook 2008 (AEO 2008), U.S. Energy Information Administration and eGRID, EPA. Cost-Effectively Reducing CO2 Emissions CHP is a comprehensive, effective, and economically sound strategy for minimizing GHG emissions. In the United States, the electric power sector produces the largest portion of CO2 emissions. Data from the US Energy Information Administration’s (EIA) Annual Energy Outlook 2008 (AEO 2008) shows that in 2006, 23 percent of US CO2 emissions were attributable to coal-fired utility generation. This share is projected to grow to 27 percent in 2030. CHP systems are usually installed only when they make economic sense. A 2007 study by McKinsey & Company on reducing US GHG emissions shows that under proper market conditions, CHP can deliver CO2 reductions at a negative marginal cost for both the commercial and industrial sectors.17 This means that investing in CHP generates positive economic returns over the technology’s life cycle. The McKinsey study further shows that based on the current price and performance of various technologies, investing in CHP has an economic advantage over many other environmentally-friendly technologies. 12 Combined Heat & Power: Effective Energy Solutions for a Sustainable FuturePDF Image | COMBINED HEAT AND POWER
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