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Policy 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 cited in this report 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 in 2008 as policy makers attempt to find solutions and models that are suitable for their unique circumstances. The IEA International CHP/DHC Collaborative is working on these issues. This report is the first of two; the second report will be published later in 2008 and will include 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 will be publishing 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.

The following are the first five of these case studies, which provide insight on CHP in New York City, a behind-the-scenes look at CHP and DHC success in Denmark, the US Federal Partnership that aims to raise total CHP capacity to 92 GW by 2010, the use of feed-in tariffs as a policy tool to make CHP and DHC viable, with a look at how this tool has been used in Portugal, and New York State’s work to build capacity through financial support.

Strategic Approaches:

CHP US Federal Partnership: The Road to 92 GW provides insight on the US Federal Partnership that aims to raise total CHP capacity to 92 GW by 2010.

Financial Incentives:

Feed-In Tariffs: Making CHP and DHC Viable, with a Portugal Case Study investigates the use of feed-in tariffs as a policy tool to help make CHP and DHC economically viable, with a look at how this tool has been used in Portugal.

NYSERDA: Financial Support and Capacity Building looks at New York State’s work to build CHP capacity, contribute to a better understanding of CHP potential, and support the introduction of new CHP technology.

Planning and Local Policy Best Practices:

Denmark – Answer to a Burning Platform: CHP/DHC takes a behind-the-scenes look at CHP and DHC success in Denmark, though smart planning and a unique utility ownership structure.

CHP in the Big Apple: Opportunities and Obstacles is an abbreviated version of an in-depth study of CHP potential in New York City, which includes analysis of drivers, initiatives, obstacles and recommendations to move forward.

Policymaker’s Roadmap Report: implications, recommendations and priorities for policy makers

Coming in March 2009.

 

 

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