Page 124 - Sustainable On-Site CHP Systems Design, Construction, and Operations

102 CHP B a s i c s

FIGURE 6-1 CHP generation as a share of total electricity for the G8+5 countries. (Source:
International Energy Agency report on CHP dated March 2008.)

CHP Programs
The individual states can also offer other forms of support for CHP such as streamlined
air permitting procedures and exemptions from sales tax for CHP fuel. The following
examples look at some of the state-specific programs designed to assist the implemen-
tation of CHP.

NYSERDA DG-CHP Demonstration Program
New York through the New York State Energy Research & Development Agency
(NYSERDA) offers significant capital cost grant support for implementation of CHP.
These programs are offered through a competitive bid process and are generally
renewed when the appropriated funding for a particular program has been drawn
down. The current program for demonstration of distributed generation as combined
heat and power has funding of $25 million and offers 30 to 50 percent cost share from
the state up to a maximum of $2 million for any one project. The program also includes
the same level of cost share with a maximum of $4 million for fleet demonstration
projects where by up to four CHP plants can obtain funding of $1 million each for a client
who has multiple sites. In addition, the program covers support for recommissioning
studies for existing NYSERDA-funded projects as well as support for technology transfer
studies to broaden CHP market penetration.
For CHP demonstration projects the program is targeted at supporting installations
that provide superior environmental performance, improve grid reliability and energy
efficiency, increase utilization of renewable fuels, and reduce energy costs in order to
foster economic expansion. These goals embody the typical focus for most of these