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CHP in New Jersey
 D.C.
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Jersey |
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West Virginia

Summary
of Activity
A significant percentage of the electrical generation
in New Jersey takes advantage of its waste heat, at
20.5% of total generating capacity this is below the
8% national average in 2003. 20% of this capacity is
in the industrial sector, 1.3% is found in the commercial
market. Electrical prices are below the national average
and have gradually fallen over the last 10 years. Natural
gas has experienced price fluctuations along with the
all other states in the region and seen prices climb
21.1% over the last 12 years. There has been quite a
lot of CHP and distributed energy activity in the state
to this point. There remains 16651MW of CHP potential
within the state, the bulk of it within the industrial
sector.

Installed
CHP Capacity
Currently, New Jersey 's CHP
market generates 20.5% of its total energy market,
amounting to a capacity of 16,651MW. This energy is
primarily generated through 179 major CHP facilities.
Commercial attributions account for 222.7MW of the
total market through the use of 116 different facilities.
The remainder is attributed to industrial and other
uncategorized sectors, having 60 facilities producing
3,196MW and 3 facilities producing 1.8MW, respectively.

Potential
Market for CHP
Since 1990, New Jersey 's commercial
electrical costs have overall followed an increasing
trend regardless of the dramatic drop in 1997. Commercial
consumers costs have spanned payments from $0.0904
per kWh in 1990 to 9.18cents/kWh in 2000 ($/MBtu =
.3413kWh). This is above the 2000 national average
of $0.0736 per kWh.
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State Restructuring Activities
New Jersey utility companies have been employed under a deregulated electricity market since August 2000. To this present day, over 2% of New Jersey 's consumers have chosen an alternate supplier representing 358MW, about .07% of the state's total load.
Summary of Restructuring by Mid-Atlantic Energy Coalition
Status of State Electric Industry Restructuring from DOE EIA (pdf)
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Electricity
Pricing
Since 1990, New Jersey 's commercial electrical costs
have overall followed an increasing trend regardless
of the dramatic drop in 1997. Commercial consumers costs
have spanned payments from $0.0904 per kWh in 1990 to
9.18cents/kWh in 2000 ($/MBtu = .3413kWh). This is above
the 2000 national average of $0.0736 per kWh.

Natural
Gas Pricing
When evaluating CHP, a considerable amount of attention
needs to be placed on the price of natural gas. Natural
gas prices in the state of New Jersey have very slightly
increased over the past few years. Compared to the national
average of $6.57/kft 3 in 2002, New Jersey 's prices
are slightly below average having a price of $6.31/kft
3 that year.

The combination of falling electric
prices and climbing prices for natural gas make the "spark spread" between the cost of electrical
and fuel energy smaller which tightens the profitability
of CHP technology but there are still going to be successful
applications for the appropriate use of CHP. Issues
with the reliability of power in light of both the tropical
storm and grid power disruptions to the north will motivate
users to explore DG options. In the case where DG is
already being installed, waste heat recovery is likely
to decrease the operating cost of the installation.
DG remains distinct from emergency backup generators,
which are typically not permitted to operate continuously
due to the emissions permit that they are issued with.
DOE
EIA - Natural Gas Prices by State
(select residential/commercial/industrial in the
“Data Series” box at top of this page)
DOE
EIA - Electricity Prices (a variety of monthly
and annual data is available at this site)
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Electric
Utility Websites:
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- company website |
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- company website |
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- company website |
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- company website |
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CHP
Requirements & State Support Programs Links
NJ
Clean Energy Program (info on Res, C&I, and
renewables programs)
NJ
Economic Development Authority
NJ
Dept of Environmental Protection (business and financial
assistance)
NJ
BPU Office of Clean Energy
NJ
Dept of Agriculture (grants, financial assistance
and services)
Financial
incentives, outreach programs, and rules/regulations/policies
for renewable energy and distributed generation
Regulatory
Requirements for Small Electric Generators - NJ

State Agency Contacts:
New Jersey Board of Public Utilities
New Jersey Air Quality Regulations
State Incentives for CHP
New Jersey offers funding thar can be used to enhance the financial viability of CHP projects. The current status of these programs is available at the New Jersey Clean Energy Program website or on the Board of Public Utilities’- Office of Clean Energy website.
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