@article{TEXTUAL,
      recid = {14597},
      author = {Kalam, Adil and King, Abigail and Moret, Ellen and  Weerasinghe, Upekha},
      title = {Combined heat and power systems: economic and policy  barriers to growth},
      journal = {Chemistry Central Journal},
      address = {2012-04-23},
      number = {TEXTUAL},
      abstract = {&lt;p&gt;Background: Combined Heat and Power (CHP) systems can  provide a range of benefits to users with regards to  efficiency, reliability, costs and environmental impact.  Furthermore, increasing the amount of electricity generated  by CHP systems in the United States has been identified as  having significant potential for impressive economic and  environmental outcomes on a national scale. Given the  benefits from increasing the adoption of CHP technologies,  there is value in improving our understanding of how  desired increases in CHP adoption can be best achieved.  These obstacles are currently understood to stem from  regulatory as well as economic and technological barriers.  In our research, we answer the following questions: Given  the current policy and economic environment facing the CHP  industry, what changes need to take place in this space in  order for CHP systems to be competitive in the energy  market?&lt;/p&gt; &lt;p&gt;Methods: We focus our analysis primarily on  Combined Heat and Power Systems that use natural gas  turbines. Our analysis takes a two-pronged approach. We  first conduct a statistical analysis of the impact of state  policies on increases in electricity generated from CHP  system. Second, we conduct a Cost-Benefit analysis to  determine in which circumstances funding incentives are  necessary to make CHP technologies cost-competitive.&lt;/p&gt;  &lt;p&gt;Results: Our policy analysis shows that regulatory  improvements do not explain the growth in adoption of CHP  technologies but hold the potential to encourage increases  in electricity generated from CHP system in small-scale  applications. Our Cost-Benefit analysis shows that CHP  systems are only cost competitive in large-scale  applications and that funding incentives would be necessary  to make CHP technology cost-competitive in small-scale  applications.&lt;/p&gt; &lt;p&gt;Conclusion: From the synthesis of  these analyses we conclude that because large-scale  applications of natural gas turbines are already  cost-competitive, policy initiatives aimed at a CHP market  dominated primarily by large-scale (and therefore already  cost-competitive) systems have not been effectively  directed. Our recommendation is that for CHP technologies  using natural gas turbines, policy focuses should be on  increasing CHP growth in small-scale systems. This result  can be best achieved through redirection of state and  federal incentives, research and development, adoption of  smart grid technology, and outreach and education.&lt;/p&gt;},
      url = {http://knowledge.uchicago.edu/record/14597},
}