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Combined Heat and Power (CHP) & Distributed Generation (DG)

Energy Action Plan. Combined Heat and Power (CHP) & Distributed Generation (DG). Melissa Jones California Energy Commission Acting Executive Director Joint Meeting December 11, 2007. The State of DG/CHP in California.

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Combined Heat and Power (CHP) & Distributed Generation (DG)

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  1. Energy Action Plan Combined Heat and Power (CHP) & Distributed Generation (DG) Melissa Jones California Energy Commission Acting Executive Director Joint Meeting December 11, 2007

  2. The State of DG/CHP in California Energy Commission Public Utilities Commission • Distributed Generation (DG), especially Combined Heat and Power (CHP), is a valuable resource for California • Offers improved efficiency and lower GHG • Helps meet local capacity requirements • Major barriers • Utility reluctance to accept electric output • Lack of market access to larger projects • Elimination of Self Generation Incentive Program(SGIP) for CHP in 2008

  3. Current DG/CHP Efforts • Rule 21 Leadership Transfer to CPUC from CEC • November 30th Letter from President Peevey to CEC • Kudos to the CPUC for taking responsibility • Environmentally Preferred Advanced Generation (EPAG) • Two recent RFPs for advanced CHP demonstrations • Public Interest Energy Research (PIER) • Transmission and Distribution system impacts • Research on advanced Microgrid systems • Scoping study on the GhG emissions from CHP in California • In which sectors CHP offers the best GhG reduction benefits • Despite our efforts, we’re falling short of achieving our loading order recommendations Energy Commission Public Utilities Commission

  4. IEPR Recommendations • The CPUC and CEC should partner to eliminate non-bypassable and standby reservation charges for DG • Base the CPUC Self-Generation Program’s incentives on efficiency and system performance, rather than fuel type • CPUC’s tariff structure should make DG projects “cost and revenue neutral,” granting owners’ credit for system benefits • The CPUC should continue the work of the Rule 21 collaborative on interconnection standards • Thank you again to President Peevey and the CPUC Energy Commission Public Utilities Commission

  5. IEPR Recommendations, Cont. • The CPUC should develop a DG Portfolio Standard for utility procurement plans, or treat all DG like efficiency programs • The CPUC should adopt revenue neutral programs, with high efficiency CHP on an equal footing with bulk power from utilities. This could include: • Utilities procuring natural gas for CHP at power plant rates • Counting CHP output toward utility energy efficiency goals • Providing a portfolio standard with steadily increasing requirements for combined heat and power generation. Energy Commission Public Utilities Commission

  6. IEPR Recommendations, Cont. • The CPUC and CEC should continue to collaborate on methodologies to estimate Distributed Generation costs and benefits • California should adopt greenhouse gas measures and regulations fully reflecting the efficiency benefits of CHP Energy Commission Public Utilities Commission

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