ARI Combined Heat and Power Workshop, which was held on 30 May 2003,
addressed how best to realize the technical and market potential
of commercial and institutional sector CHP development in Virginia,
with particular attention to the environmental implications for
the Commonwealth's ozone non-attainment jurisdictions.
USEPA now includes CHP in its definition of eligible efficiency
projects that states or local jurisdictions can choose to include
in their NOx set-aside programs, and CHP may qualify as an innovative
measure incorporated in a State Implementation Plan (SIP)
designed to reduce ozone precursors. By outlining an increased role
for CHP in the regions energy mix, the workshop results could
assist the Metropolitan Washington Area Council of Governments in
the severe ozone nonattainment SIP, as well as other nonattainment
regions in Virginia.
study recently commissioned by the US Department of Energy identified
a nationwide market potential for CHP in the commercial and institutional
sectors of 77,000 megawatts, with more than 1,800 megawatts of this
potential located in Virginia. Although CHP does not constitute
a strong domestic market at this time, the study concluded:
changes in the economic system are occurring that could make CHP
more important economically and environmentally the restructuring
of the electric power industry may provide an enhanced economic
driver and efforts to comply with the Kyoto Protocol on global
warming may provide an environmental driver for energy efficiency
options such as CHP. In addition, there is a renewed interest
in small-scale power technologies and a number of emerging technologies
that promise to decrease first costs, increase efficiencies, reduce
maintenance, and lower environmental impact.
of northern Virginias CHP potential in theory could result
in substantial emissions benefits, particularly with credit
for the thermal energy contribution, and could help the region more
quickly achieve NAAQS air quality standards. However, the realization
of this potential must answer to both regulatory concerns and the
economic interests of the various stakeholders. In order to facilitate
this process, the ARI workshop will focus on four task elements:
the commercial and institutional CHP market potential in Virginia's
major nonattainment jurisdictions;
Describe Federal, regional, state-level (Virginia and other)
and local regulatory initiatives and/or constraints affecting
the adoption of CHP;
Discuss appropriate business models and associated benefits
streams (financial and environmental) for principal stakeholders
affected by CHP implementation; and
Identify necessary and appropriate measures required for development
of CHP-responsive regulatory policies in Virginia.
invited audience included Virginia legislators and local jurisdiction
representatives included in the northern Virginia ozone nonattainment
area, along with representatives from associations on behalf of
the commercial building, school and hospital sectors.
have reviewed the USEPA CHP Partnership program, the USDOE CHP market
study and current Virginia regulations affecting CHP market penetration.
The afternoon session was devoted primarily to discussion of needed
follow-up activities, as well as opportunities for other interested
parties to make brief presentations.