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Delaware
This page is designed to provide background information on CHP activity in Delaware.
Summary of Activity
Installed CHP Capacity
Potential Market for CHP
Electricity Pricing
Natural Gas Pricing
State Restructuring Activities
State Agency Contacts
Electric Utilities Websites
CHP Requirements & State Support Programs Links
Summary of Activity
A significant percentage of the electrical generation in Delaware takes advantage of its waste heat, at17.4% of total generating capacity, this is above the 8% national average in 2003. 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 84% over the last 12 years. There has been a lot of CHP and distributed energy activity in the state to this point. There remains 2452MW of CHP potential within the state, the bulk of it within the industrial sector.
Installed CHP Capacity
Currently, Delaware 's CHP market generates 17.4% of its total energy market, amounting to a capacity of 2452MW. This energy primarily generated through 5 industrial sites. These sites produce 20% of the total CHP capacity.
Potential Market for CHP
According to the US Department of Energy, installations of CHP systems in Delaware's commercial and industrial sector have the potential to generate 150 to 380MW, representing 0.3-0.8% of DOE's 47GW long-term goal.
Electricity Pricing
Since 1990, Delaware 's commercial electrical costs have followed an overall declining trend. Commercial consumers costs have reduced from paying $0.0699 per kWh in 1990 to $0.0599 per kWh in 2000 ($/MBtu = .3413kWh). This figure is significantly 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 Delaware have steadily increased over the past few years. Compared to the national average of $6.57/kft 3 in 2002, Delaware 's prices are far above average having a price of $9.40/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.
Links to more detailed energy price data:
EIA's Natural Gas Navigator
EIA's State Energy Prices
State Restructuring Activities
Since the restructuring act was enacted in 1999, Delaware has only had a total of 5 industrial and commercial companies switch over to an alternate supplier, representing about 11MW of electricity consumption. In addition to the deregulation of its own market, utility companies can also compete in the restructured markets of Pennsylvania and New Jersey .
Links:
Summary of Restructuring by Mid-Atlantic Energy Coalition
Status of State Electric Industry Restructuring from DOE EIA
Financial incentives, outreach programs, ad rules/regulations/policies for renewable energy and distributed generation
Delaware Public Service Commission
Delaware Air Quality Regulations
Major Utilities:
Delmarva Power & Light Company (Connectiv)
CHP Requirements & State Support Programs Links
Financial incentives, outreach programs, ad rules/regulations/policies for renewable energy and distributed generation
Regulatory Requirements for Small Electric Generators
