This ICF International "quick take" discusses how Combined Heat and Power (CHP) plays a significant role in U.S. electricity generation.
The economics for CHP have become compelling enough to drive a significant and widespread rise in customer interest, although they vary across markets, depending on state incentives and retail energy rates based on central station generation. In turn, utilities are increasingly recognizing that the growth of CHP can represent a threat or an opportunity—and perhaps even some of both—and are trying to determine the right strategy to try to channel growth. To inform these strategic choices and help assess overall threats and opportunities, ICF has been working with utilities to implement that critical first step of understanding the CHP market potential in their own service territory.
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