Back to OurEnergyLibrary search




Unlocking Your CHP Potential: How to Find Sites that will Grow Revenue and Benefit Customers

Unlocking Your CHP Potential: How to Find Sites that will Grow Revenue and Benefit Customers

Full Title: Unlocking Your CHP Potential: How to Find Sites that will Grow Revenue and Benefit Customers
Author(s): Rick Tidball
Publisher(s): ICF International
Publication Date: September 1, 2015
Full Text: Download Resource
Description (excerpt):

This ICF International “quick take” discusses how CHP can help local distribution companies (LDCs) find sites that will grow revenue and benefit customers.

For LDCs, attracting new gas customers and building load with existing customers is a challenging business. Combined heat and power (CHP) offers a potential win-win: LDCs receive additional revenue from increased natural gas throughput, and customers benefit from lower net energy costs through on-site electricity production. In this Quick Take, ICF and SoCalGas discuss how their collaboration has helped SoCalGas to identify prime CHP customer opportunities, build a new business approach of having SoCalGas build, own, and operate CHP equipment on a customer’s site through a new gas tariff, and focus marketing resources and messages to top-tier locations. ICF’s CHP potential study identified sites that could see, for example, reduced site energy costs of 33% and economic payback within 6.5 years even without including tax credits or incentives. SoCalGas now has this kind of actionable, granular site-level economic information for over 1,000 C&I sites, and can actively pursue these robust opportunities.

All statements and/or propositions in discussion prompts are meant exclusively to stimulate discussion and do not represent the views of OurEnergyPolicy.org, its Partners, Topic Directors or Experts, nor of any individual or organization. Comments by and opinions of Expert participants are their own.

Sign up for our Press Release Distribution List

    Your Name (required)

    Your Email (required)

    Please sign me up to receive press releases from OurEnergyPolicy.org.