US legislation aims to further incentivise CHP

A group of legislators in the US is endeavouring to get the country’s Power Efficiency and Resiliency Act (POWER Act) extended to ensure that combined heat and power (CHP) and waste heat to power are treated in a manner that is on par with other energy technologies covered by the investment tax credit.

The news emerged from a blog posting on the Pew Charitable Trusts site.

Energy Manager websire reports that the proposed legislation would amend Section 48 of the Internal Revenue Code. More than 100 businesses that manufacture CHP or waste heat to power systems, develop projects, or are end users have already endorsed the bill.

Although installation of CHP and waste heat to power systems require an initial investment, companies start recouping their investment within a few years, and the POWER Act aims to incentivize that investment.

The technology has grown in value in the US also as a standard for resiliency, seen particularly in its contribution in the wake of natural disasters such as Hurricane Sandy.

While federal lawmakers try to advance the POWER Act, there are other avenues to promote CHP and waste heat to power. For instance, Public Service Company of Colorado provides financial incentives to industrial facilities that convert waste heat to power.

In 2012, President Obama signed an executive order that sets a national goal of 40 GW of new CHP by the end of 2020.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...