When this option is on the table, you’re lowering costs overall.
When you take it off the table, you leave money on the table.
Richard Meyer, American Gas Association
Combining two separate models, ICF International’s Integrated Planning Model® (IPM) and CHPower model, this study looks at how combined heat and power can support state compliance with EPA’s forthcoming guidance on regulating existing power plants under Section 111(d) of the Clean Air Act.Using conservative assumptions that were reviewed by a multi-stakeholder advisory group, we looked at how new CHP might come in under a business-as-usual “CHP Base Case,” and under a “CHP 111(d) Policy Case.” Our policy case built from the Natural Resources Defense Council’s (NRDC) Moderate, Constrained Efficiency scenario from their recent modeling study, which allowed for deployment of demand-side energy efficiency (up to 1 percent per year by 2020 and thereafter) at rates of 2.3-3.2 cents per kWh. Comparable to the treatment of energy efficiency, we assumed that net electric sector emissions reductions from CHP investments would earn offset credits that could be sold to covered sources to support 111(d) compliance.