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CHP in West Virginia
D.C.
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Jersey | Pennsylvania
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| West
Virginia
Summary
of Activity
A significant percentage of the electrical generation
in West Virginia takes advantage of its waste heat,
at 2.5% of total generating capacity this is below the
8% national average in 2003. 1.5% of this capacity is
in the industrial sector, 1% is in the commercial with
the remainder in residential. 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 28.3% over the last
12 years. There has been very little CHP and distributed
energy activity in the state to this point. There remains
15061MW of CHP potential within the state, most being
within the industrial sector.
Installed
CHP Capacity
Currently, West Virginia 's
CHP market generates 2.5% of its total energy market,
amounting to a capacity of 15,061MW. This energy is
primarily generated through 8 major CHP facilities.
Commercial attributions account for 145.4MW of the
total market through the use of 4 different facilities.
The remainder is attributed to the industrial market
having 4 facilities produce 228.2MW.
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Potential
Market for CHP
According to the US Department
of Energy, installations of CHP systems in West Virginia's
commercial and industrial sector have the potential
to generate 380 to 850 MW, representing 0.8-1.8% of
DOE's 47GW long-term goal.
Electricity
Pricing
West Virginia 's commercial electrical costs have changed
dramatically over the recent 10-year span. Overall commercial
consumers payments have slightly reduced from $0.0541
per kWh in 1990 to $0.0550 per kWh in 2000 ($/MBtu =
.3413kWh). This cost is below 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 West Virginia have steadily
increased over the past few years. Compared to the national
average of $6.57/kft 3 in 2002, West Virginia 's prices
are above average having a price of $7.48/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
WV
Economic Development Office
WV
Department of Environmental Protection
Financial
incentives, outreach programs, and rules/regulations/policies
for renewable energy and distributed generation
Regulatory
Requirements for Small Electric Generators - WV
State Agency Contacts:
West Virginia Public Service Commission
West Virginia Air Emissions Regulations (pdf)
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