Barriers to the Expansion of Electrical Cogeneration by the Wood Products Industry in the United States

Abstract

Cogeneration or combined heat and power (CHP) is a very efficient way to produce both useful process heat and electric power which provides a number of benefits to society including reduction in greenhouse (GHG) emissions which directly impacts climate change. Past efforts to promote energy efficiency and distributed generation technologies were supported by the Public Utility Regulatory Policy Act (PURPA). Under this policy, the nation experienced rapid growth of highly efficient and distributed energy generation facilities. Since the mid-1990s, a series of policy changes and regulatory barriers has stifled further growth of cogeneration facilities. This shift in public policy, for the most part, does not differentiate between cogeneration and merchant plants, that specifically limit the ability of cogeneration to provide additional social benefits to the United States. This article includes a review of the many new regulatory and other barriers which have developed over the years and makes recommendations to overcome them.