CHP's Role in a Decarbonizing Energy Grid
CHP is an energy technology that has been used at both the utility scale and as a distributed energy resource at buildings for many years, providing environmental, economic, and reliability benefits. As clean energy measures are implemented in buildings and through utility programs, CHP remains a viable energy option because it can reduce greenhouse gas (GHG) emissions through its efficient use of renewable and fossil fuels. CHP can provide flexible (pdf) grid support to help balance an increasing amount of variable renewable generation on electric grids. CHP is also a proven energy solution for providing reliability and resiliency to the grid and facilities. Governments, utilities, and organizations will determine how much of a role CHP will play based on their sustainability and decarbonization goals.
Clean energy and sustainability goals are driving consumer energy choices by considering cleaner grid offerings, off-site cleaner energy choices not offered through the utility grid, and building-level (referred to as end-use) electrification options. The current energy market is also a dynamic landscape highlighted by the rapid entry of new renewable fuel options and research, development, and deployment of new energy technologies. Strategies such as electrification have the potential to provide thermal solutions using grid electricity supplied from renewable power. On-site renewable energy technologies, when combined with storage, can provide resilience benefits similar to CHP. Consumers can also procure off-site renewable energy through virtual power purchase agreements and renewable energy certificates. CHP can offer a favorable solution for consumers with consistent electricity and thermal energy requirements, and it can be paired with other renewable energy options and electrification measures. With renewable fuel options, CHP offers an efficient and fuel-flexible option for generating on-site electricity and thermal energy. At the same time, where traditional fossil-based CHP is the most likely option, consumers are increasingly able to choose cost-effective renewable electricity for power and thermal needs.