How Electric Utilities Can Find Value in CHP

Electric utilities are uniquely well-suited to invest in or otherwise encourage CHP systems in their service territories. CHP offers electric utilities more cost-effective electricity generation, reduced exposure to fluctuations in customer demand, improved system reliability, reduced emissions, and avoided or deferred investments in other assets. Unfortunately the business and regulatory structures of most electric utilities tend to discourage them from pursuing CHP. Much of this has to do with the fact that most of the benefits CHP conveys to utility systems are not measured or adequately quantified, and so they do not enter into a utility’s decision-making activities. 
This white paper explains the major benefits CHP confers to electric utilities and offers specific examples of how electric utilities today are enjoying the benefits of CHP.