How Natural Gas Utilities Can Find Value in CHP

White Paper


Anna Chittum and Kate Farley


Natural gas distribution utilities are well-positioned to make significant investments in customer-sited CHP systems. Increased CHP deployment is a strategic business opportunity for natural gas utilities since most CHP systems use natural gas as their fuel. CHP users are reliable, high-load customers and offer natural gas distribution utilities a solid demand base for years to come.

Natural gas utilities already have existing relationships with the very facilities that are best-suited for CHP. The utilities can help finance CHP systems or otherwise support them within their energy efficiency programming.

This white paper explores the specific benefits that confer to natural gas distribution utilities from increased CHP deployment. It then considers the natural gas utilities that are currently enjoying the benefits of CHP, and the policies that have helped to foster such action. It concludes with policy recommendations for regulators and policymakers interested in encouraging their natural gas utilities to more directly support CHP projects.