Features Item : CHP and the Contemporary Energy... -
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Published on: 7/20/2001
Last Visited: 7/20/2001
CHP just isn't a strong market in the U.S. today , notes Mark Axford , vice president with GE-S&S Energy Products.The economics don't support many new installations.PURPA subsidies are gone-the market price for electricity is the dominant driver now , not bilateral contracts.When you build a CHP plant , only 5 % of your revenues will be derived from thermal sales.But it represents 25-30 % of capital investment..Indeed , in 1999 S&S sold 90 gas turbines in the U.S. , and 87 of those were simple cycle.Only three were slated for heat recovery , and only one of the three was a non-PURPA CHP application.