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Global Competition Today’s energy market is global. There is competition for energy supplies from growing economies such as China, India, Brazil, and others. Domestic manufacturers are struggling to maintain competitiveness against countries with lower labor, raw material, and energy costs. In the past, natural gas and refined petroleum products were produced domestically for American consumers, but now these products are frequently imported from overseas, with prices driven up by increased demand in other energy-hungry countries. This energy straitjacket involves all fossil fuels—petroleum, natural gas, and coal. Domestically produced equipment, materials, skilled labor, engineering expertise, services, and fuel are all utilized in the operation and installation of CHP systems, resulting in job creation. Using these systems domestically will allow the US to come one step closer to achieving true energy security and independence. Also, US leadership in the development of these technologies and skills will allow a thriving home-grown industry to export these innovations globally. Climate Change Concerns Most scientists agree that the increase in global temperatures or warming in recent decades has been caused primarily by human activities that have increased the amount of CO2 and other greenhouse gases in the atmosphere.14 The largest man-made source of CO2 is the combustion of fossil fuels. Many states and regions of the United States are following the lead of other countries that are implementing policies to avoid or reduce carbon emissions. Many people believe the United States is on a path to adopt policies to limit CO2 and other greenhouse gas (GHG) emissions. CHP reduces the carbon footprint of separately generated heat and power. Furthermore, it is one of the most cost-effective methods of reducing CO2 emissions.15 Need for Infrastructure Modernization While US energy demand continues to increase, investment in energy-delivery infrastructure has not kept pace. In many parts of the country, especially near urban and economic centers, both natural gas and electricity T&D systems are operating at capacity. Energy-related infrastructures are aging.16 Even small disturbances such as a heat wave, cold snap, or storm can cause major bottlenecks in energy deliveries. The movement toward a distributed energy paradigm can play an important role in solving energy delivery constraints while deferring or avoiding costly investments in infrastructure. CHP located at or near the site, can reduce capacity requirements or overloading on transmission lines, transformers, and distribution feeders. This could enable current infrastructure to serve new or growing loads, reducing or deferring infrastructure reinforcement. 14 The National Academies. 2008. Understanding and responding to Climate Change. 15 International Energy Administration. March 2008. Combined Heat and Power—Evaluating the Benefits of Greater Global Investment. 16 Average Age of US coal-fired power plants is 40 years. Form EIA-860 Database, Annual Electric Generator Report. 47 percent of boiler capacity is at least 40 years old and 76 percent is at least 30 years old. Energy and Environmental Analysis, Inc. 2005. Characterization of the U.S. Industrial and Commercial Boiler Population. Testimony before the U.S. House Committee on Transportation and Infrastructure. April 26, 2006. The U.S. Rail Capacity Shortage. Combined Heat & Power: Effective Energy Solutions for a Sustainable Future 9 Energy efficiency, including CHP, is the least expensive and most rapidly deployable energy resource available today. Efficiency will pave the road to a sustainable energy future.PDF Image | COMBINED HEAT AND POWER 2008
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