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Best Practices for CHP/DHC

Why is there not more CHP/DHC if the economic justification is so strong?” One of the key challenges is that many projects look favourable “on paper”; that is, when analysed in isolation from existing market and regulatory practices. However, in practice, the adoption of these technologies has historically been limited by important barriers, including:

  • Lack of integrated urban heating / cooling supply planning;
  • Electricity grid access and interconnection regulations;
  • Lack of knowledge about CHP benefits and savings; and
  • The lack of an agreed methodology to recognise energy saving and environmental benefits.

A few countries have been successful in increasing the use of CHP and DHC by investing in a comprehensive set of policies designed to overcome market barriers and allow them to compete equally in the marketplace. These countries and others will be given a closer look as policy makers attempt to find solutions and models that are suitable for their unique circumstances. The IEA International CHP/DHC Collaborative report on "Cogeneration and District Energy: Sustainable energy technologies for today…and tomorrow" includes lessons learned from policies summarized from a series of case studies covering key energy, environment and utility regulatory/planning approaches that have been taken in different countries.

Global CHP/DHC Policies: Lessons Learned

The IEA published case studies on a variety of CHP/DHC-related areas, including: strategic approaches, financial incentives, utility supply obligations, emissions trading options, electricity network integration, local planning for CHP and DHC, and making CHP and DHC work in developing markets.