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Interconnection Issues Economic viability of CHP for many customers requires integration with the utility grid for backup and supplemental power needs, and, in some cases, selling excess power. To be successful in the market, CHP systems must be able to safely, reliably, and economically interconnect with the existing utility grid system. The lack of uniformity in application processes and fees as well as the enforcement of current interconnection standards makes it difficult for equipment manufacturers to design and produce modular packages, and reduces economic incentives for onsite generation. Just as site-specific conditions drive CHP configurations, site- and regional-specific conditions should be considered when developing interconnection requirements. In 2003, the Institute of Electrical and Electronics Engineers (IEEE) approved the IEEE 1547 Standard for Interconnecting Distributed Resources with Electric Power Systems. The standard, which was reaffirmed in 2008, details the technical and functional requirements relevant to the performance, operation, testing, safety, and maintenance of the interconnection of distributed resources. These standards will continue to evolve as the distributed generation market develops. The Energy Policy Act of 2005 calls for state commissions to consider certain standards for electric utilities based on IEEE 1547, but does not require them to adopt the standard. Adoption of technical interconnection standards, including their application within interconnection agreements, varies by state, limiting CHP’s deployment. Environmental Permitting Higher efficiency generally means lower fuel consumption and lower emissions of all pollutants. Nevertheless, most US environmental regulations have historically established emission limits based on heat input (lb/MMBtu) or exhaust concentration (parts per million [ppm]). These input-based limits do not recognize or encourage the higher efficiency offered by CHP, nor do they account for the pollution prevention benefits of efficiency in ways that encourage application of more efficient generation approaches. Thirty-one states currently regulate emissions on an input basis. CHP generates both electricity and thermal energy onsite, it may potentially increase onsite emissions even while it reduces the total (onsite and offsite) emissions. Because current environmental permitting regulations do not recognize total regional emissions benefits, they can be a barrier to CHP development. The Clean Air Act’s New Source Review (NSR) is another permitting barrier to installation of CHP systems. NSR requires large, stationary sources of air pollutants to install state-of-the-art pollution control equipment at the time of construction or whenever major modifications are made that can increase net emissions. CHP systems increase the emissions of a facility but significantly reduce total gross emissions because of their high efficiencies. Because of this dichotomy, NSR requirements, especially in nonattainment areas (regions that do not meet ambient air quality requirements), effectively make CHP systems too burdensome to install in some cases. Combined Heat & Power: Effective Energy Solutions for a Sustainable Future 23 CHP diversifies our generation portfolio, lessens stress on our transmission and distribution system, and enhances energy reliability and security.PDF Image | COMBINED HEAT AND POWER 2008
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