Combined Heat and Power: Connecting the Gap between Markets and Utility Interconnection and Tariff Practices (Part II)

Research Report IE063


Susanne Brooks, Maggie Eldridge, and R. Neal Elliott


Although many states have been making notable progress on combined heat and power (CHP) policies, significant barriers continue to hinder the realization of CHP’s nationwide potential.; In particular, individual utility policies and practices, especially relating to interconnection and tariffs, have long been identified by ACEEE and others as a major barrier to the expanded adoption of CHP. The main driving force behind this project was to examine utility policies across the nation relating to CHP and distributed generation (DG) in order to identify utility barriers to entry for proposed CHP facilities. We also wanted to identify the hierarchy that currently exists with regards to the progressivism of CHP policies on a state-by-state and regional basis.  Additionally, we wanted to highlight the most appropriate policy options that might help the CHP industry move forward.