CHP in the District of Columbia
D.C. | Delaware | Maryland | New Jersey | Pennsylvania | Virginia | West Virginia
DC
This page is designed to provide background information on CHP activity in DC.
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 VA takes advantage of its waste heat, at 11% of total generating capacity this is above the 8% national average in 2003. 9.7% of this capacity is in the industrial sector, .04% is in the commercial with the remainder in residential. Electrical prices are below the national average and have fallen steadily for the last 10 years. Natural gas has experienced price fluctuations along with the all other states in the region and seen prices climb 42% over the last 12 years. There has been a fair amount of CHP and distributed energy activity in the state to this point. There remains 18,767MW of CHP potential within the state, the bulk of it within the industrial sector.
Installed CHP Capacity
Currently, Virginia 's CHP market generates 11.4% of its total energy market, amounting to a capacity of 18767MW. This energy is primarily generated through 44 major CHP facilities. Commercial attributions account for 78.7MW of the total market through the use of 10 different facilities. The remainder is attributed to industrial and other uncategorized sectors, having 33 facilities producing 1828.1MW and one facility producing 240.0MW, respectively.
Potential Market for CHP
According to the US Department of Energy, installations of CHP systems in Virginia's commercial and industrial sector have the potential to generate 1320 to 2410 MW, representing 3-5% of DOE's 47GW long-term goal. A high majority of this figure can be attributed to systems installed in office buildings (23%), schools (20%) and hospitals (12%). Due to increased feasibility and technological developments in small engines, smaller systems, ranging from 100-500MW, account for over 60% of the total market potential. The range of commercial and institutional system sizes Virginia 's 1860MW potential can be seen below.
Potential Commercial/Institutional CHP System Capacities in Virginia.
Source: "Role of Combined Heat and Power in Virginia's Energy Future", report prepared by The Alexandria Research Council
Electricity Pricing
Since 1990, Virginia 's commercial electrical costs have followed a steady decline. Commercial consumers costs have receded from paying 5.85 cents per kWh in 1990 to 5.49 cents per kWh in 2000. This figure is significantly below the 2000 national average of 7.36 cents 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 Virginia have steadily increased over the past few years, unlike the price of electricity. Compared to the national average of $6.57/kft 3 in 2002, Virginia 's prices are far above average having a price of $7.00/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
In the words of its State Corporation Commission, " Virginia is on its way to a competitive energy supply market". Legislation targeted at both the electric and natural gas industries established a path for diminishing regulation and advancing competition in what have been historically monopoly enterprises. The Virginia State Corporation Commission is charged with initiating the transition -- over a period of time -- from a wholly regulated environment to a fully competitive, market-driven system. They maintain a very comprehensive website that provides access to a number of reports as well as a timeline of activities with regard to restructuring. What this means is that as of the end of 2003, the majority of VA customers can freely choose their utility supplier and by early 2004 only a tiny fraction will be left in regulated environment. .
Links:
Summary of Restructuring by Mid-Atlantic Energy Coalition
Status of State Electric Industry Restructuring from DOE EIA
Virginia State Corporate Commission
VA State Corporation Commission restructuring website
DEQ CHP/DER Information Resources Site
Virginia Air Emissions Regulations
Dominion
Appalachian Power (AEP)
Potomac Edison (Allegheny Power)
Northern Virginia Electric Cooperative
Rappahannock Electric Cooperative
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
